Decoding Our Money Messages – Part 2

What are the “untruths” we tell ourselves about money? This episode explores how to decode those money messages.

Podcast Details:

Podcast Title:  Decoding Our Money Messages – Part 2

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(CHECK OUT OUR YOUTUBE CHANNEL FOR THE VIDEO VERSION)

Link to Show Episode

George Kinder from 7 Stages of Money Maturity – (2:30)

  • The Seven Stages of Money Maturity: Understanding the Spirit and Value of Money in Your LifeKinder
  • page 5…”Money Maturity helps resolve the troubling emotional conflicts around money that never seem to go away.  For many of us, money represents anything but peace.  If you answer yes to any of these questions…”

 

Addressing our subconscious message about money… (4:20)

  • Do you have a “Linus complex”?
  • There are only two natural, “unlearned fears”, so we have to realize what we are telling ourselves that is untrue in order to decode our money message.
    • What messages are you playing?  “I will never have enough”, “I need to hoard my money”

Practical tips to “reprogram” our money messages… (9:30)

  • Replace your “untruth” with a passion/purpose/dream
  • Don’t be money-motivated, be purpose-motivated
#finlit
#finance
#financialadvisor
#moneymindset
#behavioralfinance
#behavioraleconomics

Helpful Links:

Developing Our Money Mindsets Episode 8, Episode 9, Episode 10

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

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Decoding Our Money Messages – Part 1

What are the “untruths” we tell ourselves about money? This episode explores how to decode those money messages.

Podcast Details:

Podcast Title:  Decoding Our Money Messages – Part 1

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(CHECK OUT OUR YOUTUBE CHANNEL FOR THE VIDEO VERSION)

Link to Show Episode

George Kinder from 7 Stages of Money Maturity – (3:30)

  • The Seven Stages of Money Maturity: Understanding the Spirit and Value of Money in Your LifeKinder
    • Financial Planning is a form of “Life Planning”
  • Page 6…”That most important money maturity offers the ease and success that come from letting go of old painful patterns around money and learning how to create your own life based on a deepened understanding of your power and purpose.
  • Page 6 …“As my clients and students came to terms with lifelong messages about money and let them go they discovered the clarity to take practical steps like building a budget creating an investment plan or redirecting the careers toward work they truly wanted.”

The lenses we wear (7:46)

  • Our BELIEF SYSTEMS around money start forming as early as CHILDHOOD EXPERIENCES.  We may have seen our parents or siblings act a certain way with money and we have been replaying that message in our minds (subconsciously or otherwise) for many years by the time we reach adulthood.
  • In an effort to “decode your money messages”, we inevitably go through several “progressions” with our money as we mature and evolve. Realizing our behaviors are based on beliefs that get us results, we have to make sure we always are progressing towards TRUTH.
  • To truly “decode your money message”, you have to begin to divorce yourself from your emotions around money.
#finlit
#finance
#financialadvisor
#moneymindset
#behavioralfinance
#behavioraleconomics

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

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How to Unlearn Fear

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur. Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Podcast Details:

Podcast Title:  How to Unlearn Fear

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(CHECK OUT OUR YOUTUBE CHANNEL FOR THE VIDEO VERSION)

Today, we will be dealing with the subject of FEAR.  How does one unlearn fear?  What happens in between the stages of GOAL FORMATION and GOAL ACHIEVEMENT?  I’d argue that most people deal with different levels of “FEAR of the unknown” that may cause us to settle for not going after our dream.  If you don’t unlearn your fear it can grip you and cause you not to fulfill your dream.  The asked questions of:
What if I fail?
What if I make a mistake?
What if I’m not accepted?
What if my dream can’t happen?
My Concept
Here’s a concept I’ve developed for myself to help me “unlearn my fear”.  I use it to combat the notion of associating fear with a valid constraint.  These are two different things and so I will explain.  For example, if you want to open a services business after years of gaining experience and skills you’ve gathered during your career, some valid constraints would be:
  • Generating enough revenue in the business by attracting customers to support your lifestyle.
  • Competing with other services businesses that offer a similar service/product as you and finding customers
These valid constraints, if unchecked can lead to the following fear(s):
  I won’t have enough financial resources to sustain my lifestyle because I won’t attract enough customers because the competition is too great. Thereby causing the following fear:  [fill in the blank].
Here is the immediate “comeback” to use during this subconscious conversation in your mind:
If I saved enough before leaving my current job, I could build a cushion to support my lifestyle OR I could start my business part-time.  Although I’ll have to work/sacrifice more right now, I’ll have a better chance of achieving my goal and avoiding [fill in the blank].

 

There can be many other constraints that are valid like time away from relationships, regulatory and legal obligations, etc.  But the way our minds work against us to accomplish our goals and dreams is to insert [SOME FEAR] to which we have to have a COMEBACK.

 

Identify the valid constraint(s) and make sure you distinguish those from the fear(s) you have and then develop your comeback.  This can be done with anything including your personal finances.  If you fear you will run out of money before you die, or that you won’t be able to get out of debt, find your “comeback” to deal with the fear.  Can you overcome that fear by changing your habits?  What changes can you make? Can you hire someone to work with you to help you?

 

I recently read that the only natural fears we have are the fear of falling or the fear of loud noises.  All other fears are learned which mean that they can be unlearned.

 

#finlit
#finance
#financialadvisor
#moneymindset
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

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Goals, Goals, Goals – Part 3

How do you execute? Try this formula…

Podcast Details:

Podcast Title:  Goals, Goals, Goals – Part 3

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(CHECK OUT OUR YOUTUBE CHANNEL FOR THE VIDEO VERSION)

GOAL EXECUTION

 

How do you execute?  Try this formula…

 

  1. Start with the end in mind
  2. Develop a strong “WHY” (in Goal articulation)
  3. Put one foot in front of the other…rinse and repeat.
  4. Revisit your why when times get tough (as often as necessary)
  5. Move on from defeats and learn your lessons from failures–“cut yourself some slack”
  6. Celebrate your victories
“Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.”
—Jack Welch

 

“It’s not enough to be busy, so are the ants. The question is, what are we busy about?”   —Henry David Thoreau

“Plans are only good intentions unless they immediately degenerate into hard work.”    —Peter Drucker

“However beautiful the strategy, you should occasionally look at the results.”   —Sir Winston Churchill

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”   —Sun Tzu

 

#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

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Some Popular Questions and What They Mean

Some of the more popular questions about personal finance that I’ve seen.

Podcast Details:

Podcast Title:  Some Popular Questions and What They Mean
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.

In episode 44, we discussed “Knowing Your Numbers” and this is a follow-up to that episode on some of the more popular questions I’ve come across.

Questions/Issues We’ll Address on this Episode:

Q) What is a good debt ratio and what is a bad debt ratio? (5:23)

    A) Most experts would say for every dollar of income you should have no more than 36 cents of debt.  This would be anything you have a payment on (house, car, etc.).  As I explained in episode 44 about knowing your numbers, underwriters will use 43% to give you a loan, but this is a really high number.  Now let’s talk about some reasons people may want to ask this question.  I think it centers around the concept of “delayed gratification”.  How much can I afford to consume and not have a negative consequence is essentially what someone is asking when they ask this?  So let’s just illustrate the concept of bringing your future consumption to the present.  A good example of this is when someone buys a home.  You buy the home and of course, you are financing that purchase over a long period of time (e.g. 15-30 years).  So you are bringing a considerable amount of your consumption forward into the present.  However, when you start to purchase additional items to furnish the house this is when you may tend to go overboard.  The level of consumption generally speaking far exceeds what needs to be brought into the present.  So try and keep this inside 33%–that would be good.  Above 43% would be bad.
Q)  Can an individual contribute to both a Roth and a Traditional IRA in the same year? (10:30)

 

A) Yes;  as long the total contribution doesn’t exceed the IRS limit of $5500 ($6500 if over 50) per person.  But why would you want to contribute to both versus one or the other?  In a lot of cases, the contribution to a Traditional IRA can be deducted from gross income in the tax year you make the contribution.  There are some rules around this based on income and whether you participate in your employer’s retirement plan.  For instance,  if you can’t make a deductible contribution to a Traditional IRA you may want to make the entire contribution to a Roth IRA if you qualify.  You also may want to split the contribution between the portion that is deductible since it phases out and contribute the remaining amount to a Roth.
Q)  How did the financial crisis affect the banking sector? (14:09)

 

A)  The short version is that lending was constrained because there was a lack of trust in the system.  In most cases, you never see a banking crisis because there is always a “lender of last resort”.  This is the bank or collection of banks that will always buy a security that is offered as collateral so that the seller can use the cash to continue whatever operation it has.  Can this happen again?  There is a lot more liquidity in the system because the FED has purchased a lot of treasuries from banks and that cash has been “put” into the system for lending and “cushion”.  However whenever a large enough fear can be built into the system because asset prices get too high and form a “bubble”, then you have the makings for uncertainty again.

#financialadvisor #financialplanner #financialquestions #finliteracy #finlit

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About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

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Goals, Goals, Goals – Part 2

You should have a clear picture in your mind which can be reflected on paper that holds you accountable to achieving the results you desire.

Podcast Details:

Podcast Title:  Goals, Goals, Goals – Part 2

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(CHECK OUT OUR YOUTUBE CHANNEL FOR THE VIDEO VERSION)

In GOAL ARTICULATION, you must…

 

Start with the vision, write down what you think it will take you to get there, and finally, commit to the plan!

 

This 3-step process is called GOAL ARTICULATION.  It creates the accountability system you need to accomplish whatever goal you are striving to achieve.  Generally speaking, my clients come to me with a picture in mind of what they want for their finances, but they lack they system or plan to help execute.   In building their roadmap to financial contentment, I use this process to help them express their goals and also create a process to achieve them.

 

#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Where to Find Us:

Facebook-Icon78-3 twitter-icon youtube google
#FinancialLiteracyBootCamp

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Know Your Numbers: The Most Important Financial Ratios/Formulas to Know

After this episode, you should be able to use this information to get a pulse on your financial health…

Podcast Details:

Podcast Title:  Know Your Numbers:  The Most Important Financial Ratios/Formulas to Know
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.

In episode 40, we talked about whether we were winning the fight for financial literacy and I made a comment about understanding certain financial ratios when it comes to your personal finance. Today,  I’ll cover some of the most important financial ratios and formulas to know that are crucial to your financial picture.  After this episode you should be able to take these financial ratios and formulas to get an indication of where you are when it comes to spending, saving or investing.

Questions/Issues We’ll Address on this Episode:

  • Understanding Your Debt to Income Ratio (4:50) – Very popular ratio when it comes to receiving a loan.  A lot of underwriters and financial institutions use this to determine credit worthiness.
  • Understanding Your Emergency Fund Ratio (7:40) – Very popular ratio when it comes to determining your liquidity.  The saying “living from paycheck to paycheck” stems from a lower than needed emergency fund ratio.
  • How much House Can you Afford (14:45)–This is a formula that should be calculated when you buy a house or attempt to refinance your current home loan.
  • Personal Savings Rate and a Quick Lesson on how to calculate your retirement number (17:15) – This is the mother of them all–personal savings.  This will directly determine how much will be in your nest egg at retirement.  I break down how to get to this number.

#financialliteracy #finlit #finance #financialplanning #financialeducation #advice #financialadvisor #finlit #money #finances  #money #tips #retirement #investing #debtratio #knowyournumbers

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Subscribe to the podcast!

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

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Goals, Goals, Goals – Part 1

The first step in reaching your goals is to DREAM. The dream is the essence of your GOAL FORMATION.

Podcast Details:

Podcast Title:  Goals, Goals, Goals – Part 1

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(CHECK OUT OUR YOUTUBE CHANNEL FOR THE VIDEO VERSION)

 The first step in reaching your goals is to DREAM.  The dream is the essence of your GOAL FORMATION.
A common theme in our society is saving for retirement.  But where do you begin?  GOAL FORMATION.
Spending some time on GOAL FORMATION is the first step in how you would attack how much money needs to be saved, such as:
  • What do you want your lifestyle in retirement to be…
  • How much money would that take…
  • How long you need to work to fulfill that…
  • What do you want to do in retirement…
  • What do you want to achieve… 
As we’ve mentioned before in Financial YOU (listen to part 1, part 2, part 3 or part 4), the first step to attacking any problem would be to assess your current situation before you can address any issues that you notice, make the necessary adjustments and then achieve what you want.  So this is pretty common to goal setting and achievement.
#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

 

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How Well Do You Know Yourself

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur. Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Podcast Details:

Podcast Title:  Using Money and Not Letting It Use You

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

(HEAD OVER TO YOUTUBE FOR THE VIDEO VERSION)

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  • What does the research really show? (3:20)
  • What is our problem?  (5:40)
#truefinancialcontentment
#financialadvice
#financialplanning
#behavioraleconomics
#behavioralfinance

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

Sound bumps provided by www.bensound.com

The Infamous 401(k) Rollover…The Why and The How

You leave a job and you have money in a 401(k) what should you do with it?

Podcast Details:

Podcast Title:   The Infamous 401(k) Rollover:  The Why and The How
Podcast Series: Financial Literacy Boot Camp
Video and illustrations available on our YouTube channel here.

Powerpoint Slides

Questions/Issues We’ll Address on this Episode:

  • There are two buckets of money…qualified or non-qualified (5:00)
  • What is a 401(k)? (6:00)
  • Is it mine?  (6:35)
  • Can I roll this into my new employer’s plan?  (10:35)
  • Can I still participate in my former employer’s plan?  (11:30)
  • How should I invest my  401(k)?  (12:33)
  • What is an IRA?  (15:35)
  • Why would I want to rollover my 401(k)? (17:00)
  • The steps to a 401(k) Rollover (19:00)

 

#financialliteracy #finlit #finance #financialplanning #financialeducation #advice #financialadvisor #money #finances #taxes #tips #retirement #investing #401k #401kplanning

Submit a “Boot Camp Listener” question

Sign up for more our free newsletter with financial updates like these!

Subscribe to the podcast!

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

 

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