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4. Identify Goals

Financial Planner Helps You Discover Your Money Personality

by Fern Alix LaRocca

in 4. Identify Goals, Financial Goals

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The First Simple Truth About Money was about procrastination and financial fuzziness. The idea is that your non-actions around money can lead to bigger difficulties down the road. If you read the post, I hope that it caused you to make some behavioral changes. (Please write a comment and let me know if it did!)

Do You Know You Have a Money Personality?

Here’s a related question for you. Ever wonder why you procrastinate about financial matters? It may be due to your deep-seated money personality. We’ve all developed money habitudes and attitudes over the years – learned from our parents, our teachers and our peers.

Some of the information we absorbed about money may not be serving us so well now. For example, if you were raised in an atmosphere of scarcity, you may spend your whole life craving things you can’t afford and you now overspend to get them. On the other hand, if you grew up with abundance, you may expect things will always come easily to you. If your mom was a spendthrift, you may become one too or, you may overcompensate by becoming a miser.  If your dad procrastinated about important money decisions and took the attitude “things will work themselves out”, you may find yourself taking the same approach.

My Money Story

My mother and father were extremely frugal, especially my father. He didn’t want anything. Buying him a gift was torture because it was impossible to figure out what he would like – except peanuts, he loved peanuts.  So my siblings and I would end up buying him canisters of planter’s nuts for any occasion that required a gift.  His frugality rubbed off on my mom. Going out to eat with her is challenging. She’ll look at a menu and always order the cheapest thing on it – or a side salad.  Not a comfortable experience when you’ve just ordered filet mignon.

We kids would only get the “necessities” – food, clothing (thankfully we wore school uniforms!) and shelter. So, I learned early on that if I wanted the “extras”, I needed to find a way to buy them myself. This was probably a good thing, as I became self-sufficient at a very early age. But I also rejected the frugality of my parents and have been known to indulge myself on occasion. I’ve worked hard to find a good balance between being frugal and being extravagant.

Can you change your money personality?

Like anything with psychological or emotional roots, it’s possible but it takes work.  Deborah Price is the author of Money Magic, Unleashing Your True Potential For Prosperity and Fulfillment. She is the founder of the Money Coaching Institute based in Petaluma, California and she has developed a money coaching curriculum with the aim to “combine both practical financial guidance with sound psychological principles to help you transform your relationship with money and lead a more purposeful and prosperous life.”

In my own financial planning practice, I find that the more I know about my client’s money type or personality, the better I can serve them. To that end I have each client fill out a money personality questionnaire, which seeks answers to such questions as:

  • What messages did your receive about money as a child growing up?
  • How did you parents handle money?
  • Did you feel like you got an adequate financial education growing up?

Most people are perfectly willing to do this exercise and seem to find the opportunity to explore the emotional and psychological aspects of money cathartic. If I interview a potential client who is in financial trouble and I sense a pattern in his/her life, I will often suggest they work with a money coach first as a precursor to the more technical financial planning work.

If you think that you may be acting in ways that sabotage your chance of financial success and it’s become a pattern  - read, sign up for a workshop, talk to trusted friends or advisors, or engage a Wealth Coach.

-Cathy Curtis CFP, Curtis Financial Planning


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Women and Money-You Weren’t Born to Shop; How Your Money Personality affects Your Bank Account

by Fern Alix LaRocca

in 4. Identify Goals, Financial Goals, Investments

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Here is an interview with Cathy Curtis CFP of Curtis Financial Planning in Oakland, CA. Cathy is a fellow NAPFA member, and fee-only financial advisor who specializes in helping women with their finances.

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80% of American women will find themselves the sole keepers of their personal finances at some point during their lives, however, most of those women feel financially insecure, despite controlling more wealth, having more education and being more involved in financial decisions.

What you will learn from this audio file:

• How your money personality affects your money behavior

• 3 simple money truths that every woman needs to know

• How comprehensive financial planning helps women.

Cathy Curtis CFP also tells you where to get her free 10 Simple Money Truths eBook.

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7 Investment Tips From One of the Richest Men in the World

by Fern Alix LaRocca

in Financial Goals, Investments

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I am a big fan of Warren Buffett- but not always. Sometimes it seems like his investment tips are out of touch and just when I want to think of him as an old bag who isn’t investing with the times- he pulls out a one two punch and shows everyone how it’s done right.

Besides, he has an annual shareholder report that makes me laugh every time, and yes, I am a shareholder. But it doesn’t matter if you have invested in Berkshire Hathaway or not, here are some of the best investing tips everyone should live buy:

1. Understand what you own. Some people take this too literally. Mr. Buffett didn’t have a clue about technology until he met Mr. Gates and now he is a big tech fan. Word to the wise- when you don’t know, partner with someone who does.

2. Don’t buy when everyone else is buying. So difficult to do but very rewarding when done.

3. Buy when everyone else is selling. This crash was the latest big opportunity to buy more. Did you?

4. Buy value. He doesn’t ever buy on the hunch that a company is going to grow. He buys stock in companies that already have a lot of value but aren’t priced high to reflect that value.

5. Stay liquid. If you have all your chips in, you can’t make anymore bets, and you can’t take advantage of opportunities as they come up. Keep cash available to invest.

6. Don’t get swayed by the next “potential” Apple. Growth and fame does not mean profit.

7. Be a long term player. Even though you may experience lower returns than the overall market, if you believe in your positions and stick it out you will find consistent positive returns over a longer period.

Investing tips to put on your wall every time you want to buy or sell.

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Your Mind Map Tool for More Money

by Fern Alix LaRocca

in Financial Goals

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We all want to make a lot of money. It’s a lot easier to make money when you know what the money is for. When you have an target in mind, the journey goes much faster and smoother than if you focus on the mundane tasks that you need to do to get there.

I use a tool called Mind Mapping. Mind mapping tools are a great way to get the creative juices flowing. Mind mapping is done with plain white paper and a pencil. You write your main word or idea in a bubble in the center of the page (retire early or buy vacation home). You then create branches coming out of the bubble with everything you can think of that’s related to the topic. You can create as many branches and sub-branches as you wish, with links and arrows between related ideas.

Mind mapping is more than simple list-making. There seems to be something about the lack of lines, which imply relative importance or order of doing things, as well as the act of getting something down on paper instead of just circling in an endless mental loop that can lead to intense creativity and solution-oriented thinking. I use the mind mapping tool at FreeMind which is free to brainstorm business management and development.

Having a hard time to make a decision? Mind mapping is a great technique for couples to use for planning investments, college planning, retirement wishes or deciding whether to stay in your home or buy a new one. MindJet is another free mind mapping tool.

What most people like about mind mapping is that it keeps them from thinking in a linear fashion. You are also able to see relationships, the big picture, and details all at once.

If you are suffering from indecision, try mind mapping tools to help you get clear about your next step.

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Protect Yourself From a Ponzi Scheme

by Fern Alix LaRocca

in Financial Goals

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Bernard Madoff’s Ponzi Scheme, which allegedly helped defraud investors of $50 billion, is the latest example of how the financial services industry fails to protect those they serve. The market chaos coupled with this case and apparent inability of the Securities and Exchange Commission (SEC) to monitor large financial businesses highlights the intensifying need for tougher regulation.

Until this regulation is in place and agencies in place are cracking down on unethical, fraudulent practices, investors must take the necessary precautions to ensure they are not at risk. I have written an article on this for you: Trusted Financial Advisor Or Broker? Discover the Difference With These 6 Guidelines

Build relationships with financial professionals who you know are doing the best for you, not just because your cousin Vinnie referred you to them.

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Here’s How You Can Benefit In This Crisis

by Fern Alix LaRocca

in Financial Goals, Investments

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Despite the government’s efforts and the billions already spent, the crisis clearly remains a long way from being resolved. Here are 3 tips on what you can do:

  • Time to think past frustration, fear and/ or anger and get educated about possibilities. Your greatest worry in the unknown.
  • Time to look at all the options. Rarely is a situation so black and white that workable options don’t exist. (If you know me well, you know that I have to look through an entrie store before I buy anything. LOL!)
  • Time to review risk tolerance and plan for the next phase of your investments. Can market opportunities overshadow risk for you?

The key to success is a clear understanding of your needs, knowing what to expect, and being prepared. You need to where you stand and what you can do now and into the future. My strategy conversation is an opportunity to understand your concerns and help you move forward from where you are to where you want to be.

Many of you have reviewed my audio file where I talk about my one-on-one Coaching Program to help you look at your options in all areas. Most of you haven’t worked with a Coach virtually so I want to let you the benefits of working with me in this manner. In the past, I had employees and a 1200 sqaure foot office space in downtown San Mateo with clients all over the Bay Area and in some other states. Now I work out of a home office with an iphone and professional headset. I work with clients all over the world- most of whom I have never met and we all love it. The benefits to you are:

  • Clients are set up to learn/listen/participate in a session, and there is almost a (healthy) expectation that something terrific will be created, presenced or discovered during the session itself. In other words, wisdom and action plans can be created, instead of just information being transferred.
  • Clients feel more confident in sharing personal stories that they wouldn’t in person. Because of the freedom to share personal or meaningful things, clients tend to act more quickly and get results faster. We are there to work together and hear/be with each other without the distractions/diversions of clothing, uncomfortable chairs, stress of driving to the office, opinions about another hair style, etc.
  • Clients can reach a goal, make a change, prove what they learned, or fix a problem in a session, not just after it. This approach helps the client to learn more deeply and to assimilate the information/skills completely because they are using it, not just learning/understanding it. Big difference. When focusing on desired results, clients learn the information/skills 2-10 times faster/better/deeper (as compared to theoretical learning).
  • Clients who have different learning styles are accomodated quickly. Coaching sessions can be recorded for future review for auditory learners, personalized checklists, and worksheets, and outlines are available for visual learners and kinesthetic learners can take notes.

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It’s My Birthday and I Don’t Cave In

by Fern Alix LaRocca

in Financial Goals

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My daughter wouldn’t get out of the car for her tutoring session so I sat there with her until she gave up from boredom. When I apologized to the instructor about being late, her replied that most parents cave in to the demands of their children. After over 20 surgeries, I am not about to cave in to an 11 year old. But we all cave in to something and that can keep us from the lifestyle we desire:

  • Do you cave in to unreasonable goals that your spouse has set?
  • Do you cave in to your rich buddy’s investment advice only to lose your shirt?
  • Do you cave in to get rich quick strategies on the TV and Internet?
  • Do you cave in to emotional trading not based on any logic?

If so, you can stop sabotaging yourself for the rich life you deserve. There are no guarantees in life and no get rich quick schemes that work. The financial planning process is a proven path to wealth – 7 steps to a logical, successful, plan to increase your income and help you get your hard earned money working for you.

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Get Rich Slow

by Fern Alix LaRocca

in Financial Goals

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My husband and I like to splurge on a fancy meal every now and then and we noticed the Slow Food trend among the foodies in the Bay Area. I don’t know who started it but Slow Food is basically locally grown fresh foods that are not precooked in the restaurant – so be prepared to wait for your meal. It will be a long dinner, but it will be worthwhile. Fresh food expertly prepared and artfully presented makes a meal and an evening extra special.

I propose the same idea with money. Sick of the great rich quick scams and schemes? I know I am. There is a way to make money. I have done it for myself and my clients – the slow way. Like a fine dish to be prepared, you can slowly, and simply grow your money, understand it’s purpose and invest it for the future to fund the lifestyle that you desire.

Remember, it’s not how much you make, but how much you keep.

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Fighting Over Finances? 5 Tips to Financial Bliss

by Fern Alix LaRocca

in Financial Goals

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Most couples fight over finances and many will even divorce over money conflicts. Many couples have differing philosophies – one may be a spendthrift while the other is a cheapskate. It doesn’t matter what your money baggage is, you and your spouse can resolve financial issues with these 5 tips:

  1. Promote mutual understanding of each other by discussing how you were raised around money and what your money personality is. It doesn’t really matter how your parent’s interaction with money played a part of your money relationship; it is just important that your spouse understands where you are coming from so  he/she can be more understanding and compassionate about how you make financial decisions. Don’t judge or attack each other’s styles – accept and learn how to work with what you both bring to the relationship in order to attain money harmony.
  2. Get the ostrich to come out and play the investment game. The silent spouse or the “I don’t want to know” spouse is skeptical that anything but poverty is a choice. Get them involved slowly by educating and discussing options and opportunities that you can take advantage of. This will get their heads up and thinking – hey, maybe we can build wealth after all.
  3. The unbalanced couple where one knows everything and the other is out of the loop is challenging. I get the balance back in the game by getting one spouse slowly involved and getting the other spouse to relinquish some control over the finances. One will feel empowered by the new duties and the other will see that they don’t have to do it all and know it all, a win-win for all.
  4. When all else fails, bring the kids into the picture and make wealth building a family affair. Have a once a month financial meeting to discuss what the family’s mission statement is – what they value, what they will pass on to each other and what they share with others. This gives the kids a wider view that money isn’t always about material things but also about helping others. It also is a great segway to letting the kids know what you will provide for them and what is expected of them to provide for themselves.
  5. Not on the same page? Try this. Each spouse writes down their financial goals in private and then share. Look at each list and highlight the common ones that you share. Work on how you both will achieve that goal. When you accomplish one goal together, then it is a lot easier to compromise and come together to work on the next. Success breeds more success.  Watch out! In this process you may find out that it is even fun to outline together what you want your financial life to look like and how you both will contribute to that.

Don’t let issues around money destroy your marriage.  No matter how different you are in your money personalities you can still find common ground and come together to realize those goals and aspirations that you both want and deserve.

Get out the pen and paper and start now after dinner with a discussion about what you really want. Remember that you can’t reach a target if you don’t know what it is. Let failure be an option. You aren’t always going to get it right but keep forging ahead. It’s all a learning and growing experience to be enjoyed together.

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Money Breakthrough-Get Yourself One

by Fern Alix LaRocca

in Financial Goals

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I have been a Financial Advisor now for over 26 years and I have worked with very poor people and very wealthy people. There is a big difference – not just in the size of one’s bank account but in many areas. Here is what I have observed:

  • Poor people are always looking for the big bucks. They are attracted to scams and investments that offer double and triple digits. They don’t take the time to do their own due diligence but rely on friends, neighbors, and relatives for opinions. They never have enough time to look at how to do things right.
  • Rich people are always looking for a way to save a buck, twenty bucks, or more. They understand the power of compound interest and get that lots of small savings here and there snowball into one big growing account (see 401K plans, for example). They make the time to find ways to save because they know how important it is.
  • Poor people always have an excuse for why they can’t save. They want to wait until the economy is better, or the kids are grown or there is more equity in the home. These are just excuses for not moving forward. Change can paralyze them.
  • Rich people can see the risk/reward ratio and jump in and make a decision. They understand that the changes they make now will help them later. They are willing and eager to make changes to get ahead.
  • Poor people pick trusted advisors for fancy offices or  how they look or who they know, instead of choosing someone with the right knowledge and services at the right price to help them.
  • Rich people know the strengths and weaknesses of their advisors and rely on them and their associates to support them in wealth accumulation.
  • Poor people are afraid of failure and scared of losing money.
  • Rich people understand that they will fail and that will not stop them from moving forward and they know at some point they will lose some amount of money and they are at peace with that. Nothing ventured means nothing gained.

See a pattern? Notice the strengths; notice the weaknesses. Are you a rich person or a poor person? You can breakthrough patterns of fear, mistrust, and indecision through the coaching process. Email me to set up a complimentary coaching session.

Breakthrough old money patterns and build lasting wealth today. E-mail me, Fern, a Financial Advisor with over 26 years in the business at fern@wholeheartedway.com to have a money breakthrough.

Coaching Question – What money pattern would you like to get rid of?

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