Personal Development: The Plan by Jim Rohn

I’ve reposted an article from Jim Rohn before, and after reading this one, I knew I had to share it with you, too! He has such a great outlook on success and what motivates and inspires me. Every week I receive his email newsletters and I am always excited to see what he has to say next. Get your own subscription here! (Also, for more great tips, like him on Facebook)

Now, here is my definition of success: A few simple Disciplines practiced every day. Do you see the distinction? A few disciplines… Here’s a little phrase we’ve all heard, “An apple a day keeps the doctor away.” And my question to you is, “What if that’s true?” How simple and easy is that plan?

The fact is, when you look at successful people, you will almost always discover a plan behind their success. They know what they want, they work out a plan that will get them where they want to go, and they work their plan. It is the foundation for success. We as humans have the unique ability to affect change in our lives; it is through our own conscious choice when we engage in the miracle process of personal development that we are able to transform our nature and our lives.

It is the combination of the materials and your open attitude towards learning, driven by the diligent following of a plan that is right for you, that will make this year the kind of success you want it to be. So let me challenge you to be no less sincere, be no less committed to the advancement of your philosophy, the set of your sail, your plan.

So, what are some good ideas on developing a plan that will work well and take you to the finish line powerfully and in style? Here are some major points to keep in mind:

Develop the Plan for You. Some people are very detail oriented and they will be able to follow an intricate plan closely. Others are a little more “free-wheeling” and not really “detail” people. That is okay too. In all the years of my speaking to audiences worldwide, people have asked the question, “What plan is the right plan?” And my answer, the plan that fits you. Your plan, the one you develop that is unique to you and for you. You see, each of us is unique and motivated by different factors and you’ve got to develop one that is right for you and fits you. Some plans will not be as intricate as others but we all must have a plan, along with goals in that plan, to move us along the program. If you are a free spirit type, don’t tell yourself you are going to spend 2 hours a day with a book and tapes and journal. It probably won’t happen and you will get discouraged! Whatever your personality, your strengths and your weaknesses, develop the plan around them! This is not a one-plan-fits-all proposition.

Establish Times to Spend Working on the Material. It may be every Sunday night. It may be 20 minutes each morning. It may be in the car listening to the CD’s every Monday, Wednesday, and Friday. Whatever it is, set the times and do it. In your step-by-step plan, put down points that you can accomplish every week. They should be specific and achievable. Develop the discipline and take those steps every day, which will move you closer to your goals and where you want to be.

Keep a Journal. Take notes. It may be on paper, it may be on a micro-recorder. Mr. Schoaff taught me not to trust my memory, but to write it down, to find one place to gather the information that affects change. And that advice has served me well all these years. Record the ideas and inspiration that will carry you from where you are to where you want to be. Take notes on the ideas that impact you most. Put down your thoughts and ideas. Brainstorm with yourself on where you are going and what you want to do. Record your dreams and ambitions. Your journals are a gathering place for all the valuable information that you will find. If you are serious about becoming wealthy, powerful, sophisticated, healthy, influential, cultured, unique, if you come across something important write it down. Two people will listen to the same material and different ideas will come to each one. Use the information you gather and record it for further reflection, for future debate and for weighing the value that it is to you.

Reflect. Create time for reflection — a time to go back over, to study again the things you’ve learned and the things you’ve done each day. I call it “running the tapes again” so that the day locks firmly in your memory so that it serves as a tool. As you go through the material in this plan, you will want to spend time reflecting on its significance for you. Regularly set aside time – here are some good guidelines for times to reflect: At the end of the day. Take a few minutes at the end of each day and go back over the day – who’d you talk to, who’d you see, what did they say, what happened and how’d you feel, what went on. A day is the piece of the mosaic of your life. Next, take a few hours at the end of the week to reflect on the week’s activities – I would suggest at least one half-hour. Also during that weekly time, take a few minutes to reflect on how this material should be applied to your life and circumstances. Take a half day at the end of the month and a weekend at the end of the year so that you’ve got it so that it never disappears, to ensure that the past is even more valuable and will serve your future well.

Set Goals. While we are going to cover this soon enough in upcoming weeks, let’s just remember that your plan is the roadmap for how you are going to get to your goals, so you have to have them. Of all the things that changed my life for the better (and most quickly), it was learning how to set goals. Mastering this unique process can have a powerful effect on your life too. I remember shortly after I met Mr. Shoaff, he asked me if I had a list of my goals, and of course I didn’t. He suggested to me that because I lacked a set of clearly defined goals that he could guess my bank balance within a few hundred dollars… and he did! Well, Mr. Shoaff immediately began helping me define my view of the future, my dreams. He taught me to set goals because it is the greatest influence on a person’s future and the greatest force that will pull a person in the direction that they want to go. But the future must be planned, well designed to exert a force that pulls you towards the promise of what can be.

Act. Act on your plan. What separates the successful from the unsuccessful so many times is that the successful simply do it. They take action, they aren’t necessarily smarter than others; they just work the plan. And the time to act is when the emotion is strong. Because if you don’t, here’s what happens – it’s called the law of diminishing intent. We intend to act when the idea strikes us, when the emotion is high, but if we delay and we don’t translate that into action fairly soon, the intention starts to diminish, diminish and a month from now it’s cold and a year from now it can’t be found. So set up the discipline when the idea is strong, clear and powerful – that’s the time to work the plan. Otherwise the emotion is wasted unless you capture the emotion and put it into disciplined activities and translate it into equity. And here’s what is interesting: all disciplines affect each other; everything affects everything. That’s why the smallest action is important — because the value and benefits that you receive from that one little action will inspire you to do the next one and the next one… So step out and take action on your plan because if the plan is good, then the results can be miraculous.

We are at the beginning of a fantastic journey that is going to help us become all that we want to – so let’s get going!

Reviewing the budget

Setting up a budget is one way to grow wealth. Budgeting helps us track our expenses so that we know where our money is going. Some of our expenses are legitimate – the mortgage, utilities, insurance, groceries, fuel, etc. When we take the time to investigate our spending habits, we usually find that we spend more money than we thought on frivolous items.

I am not saying that we can’t have fun money in the budget. I am saying that if we are smart, we have money for fun but plenty of money in our savings accounts. Hopefully we have more than one savings account. I would have an emergency fund, a retirement fund, a vacation fund, and a mad money fund for everything frivolous that we must have to stay motivated and keep up the hard work. The mad money fund can also be in cash so that when it is gone, that is it until the next funding cycle.

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To set up the initial budget, we have to track the expenses. Set up a few columns for income and the necessary expense categories. If you are on a fixed income, you know what you are making each month. Write the income in one column. If you are self-employed, you can do an average of the last 6 months or write in the amount that you know you must make each month to live. On the high months, put the extra money away for the low months so that in the low months, your budget is not short.

If you use a software program, like Quickbooks, Mint.com, or Excel, run the P&L report by month to total the expenses and recurring debit categories. If you do not use software for tracking, get your last 3 bank statements and a highlighter and start marking it up. Then use a calculator to total up each category.

This will need to be done on the business level as well if you are self-employed.

One major category to watch is the Misc/Fun category. This column is for all unnecessary expenses like dinner out, clothes, movies, Starbucks, etc. Again, I am not saying that we should not have fun in our budget, at this point we are narrowing down our essential living expenses so that we can make room for everything else. There is usually a lot of money floating in this category that could be better used in the emergency fund or the retirement fund.

Once you have your numbers, review them and see where you can improve or save. If you aren’t bringing in enough money to cover your basic living expenses, then your Misc/Fun category should be near zero until you find work that pays better.

A few simple improvements can sometimes make all the difference between overspending and saving. If the grocery category seems high, use coupons. If your Misc/Fun category seems high, take advantage of Groupons and online coupons to cut these costs in 1/2.! If your cell phone, cable or health insurance costs seem high, make a phone call and see if your provider can do better. There are plenty of discounts offered to new customers that existing customers can take advantage of as well if we ask.

We need to live our budget today, review our habits weekly and revisit the budget every quarter for necessary fine tuning. Budgeting and tracking today will set up our future. When we have money to live, invest, and play, we are on the right path. In the beginning days of budgeting or if our income isn’t where it should be, we need to be very vigilant with our money. When we have put in the time, the budget will improve and we can ease up a bit and not have our budget be overwhelmed by a $4.00 coffee or a $20 pair of shoes! Let the budget work for you to eliminate the stress of overdraft fees for good. You will also find that you eliminate debt and improve your credit score for even more savings!

I am here to help and answer any questions that you have. You can subscribe to my blog for future information or send me a message on my Facebook page at http://Facebook.com/ProjectDone which I will gladly answer.

Guide to Credit Reports and Scores

Have you looked at your credit report recently? Are you overwhelmed with credit issues due to a low score? There is an online resource for helping us better understand what a credit report means and how to use it and improve it if needed. The Federal Reserve has an online guide with the basic information in an easy to read guide at: http://www.federalreserve.gov/creditreports/

Your credit history is important to a lot of people: mortgage lenders, banks, utility companies, prospective employers, and more. So it’s especially important that you understand your credit report, credit score, and the companies that compile that information, credit bureaus. This site–maintained by the Federal Reserve Board–provides answers to some of the most common, and most important, questions about credit.

The guide includes the basics:

• What is a credit score?
• How is a credit report used and why is it important to protect our credit history?
• Who uses credit report information?
• How long does negative information stay on the report?
• What to do if there are errors on the report.

We can get a free annual credit report from all three credit bureaus at: http://annualcreditreport.com You should get all three reports at once the first time so that you can become familiar with the layout of the information. Then, it would be wise to spread the reports out by ordering one report quarterly from only one of the credit bureaus and save the $9.95 order fee. Review your history and be on the lookout for errors on an regular basis.

Lenders are required to tell consumers when negative information on their credit report will translate to higher rates and fees for mortgages, credit cards, and other loans. If you are turned down for credit, ask the lender for a copy of your credit report. They are responsible for getting this to you at no cost but you have to ask within 60 days. This is another way to get a credit report for free.

We are still required to pay a fee for our credit score. There are online sites like http://creditsesame.com that can help. Enter your credit information and your score is determined. Credit Sesame sends a monthly email letting you know if your score has changed as well as tips to improve your current score.

Take charge of your financial future and be in control of what your credit history says about you. We are not our credit score but the number dictates our financial leverage. Reading and understanding your credit report takes a little time and patience so start now!

I am here to help and answer any questions that you have. You can subscribe to my blog for future information or send me a message on my Facebook page at http://Facebook.com/ProjectDone which I will gladly answer.

Financial Literacy Month – 6 Areas of Finance to Focus On

April was Financial Literacy Month. Financial service companies feel that Americans are financial illiterates who do not pay attention to the detail or the fine print. As financially literate people, we need to understand how we use our money when saving, spending and investing. It is expensive to ignore the lessons and it is time that we take action to better understand our financial future. The more we know, the better protected we will be.

Here are 6 areas of finance where we should start paying more attention to the details. For the next 6 weeks, take one of these at a time to move closer towards full financial understanding.

1.  We can take small steps towards understanding. Focus on the details by learning about the different types of accounts at our bank and selecting the best fit for us. If we leave it up to the banker, they may put us into an account that makes them money regardless of how it works for us.

2.  Learn about credit by selecting the credit card or loan with the best rates and terms. The details are there. All that we have to do is read and compare. Sounds easy but we don’t always take the time to look at the information since we aren’t sure where to start. When looking for credit, our credit history and score play a big part in what is available to us. Know your credit score and get your free annual credit report from freecreditreport.com or annualcreditreport.com. Use the math calculators on bankrate.com to figure mortgage rates and payment details.

3.  Learn about budgeting. You can subscribe to my blog and others to get the knowledge needed to keep more money in the bank and to grow what you have. We need to know our household budget and we should be budgeting for our goals as well. The less surprises we have, the better prepared we are. Use a software program or an Excel sheet to plug in the numbers. The more often you do this, the better understanding you will have of your saving and spending habits. The more you understand the less money you will waste.

4.  Learn about investing. There is so much information out there and we don’t have to figure it all out for ourselves. There are financial planners that will help our money grow as well as websites that are full of information and strategy. Earning a passive income through investments means that we won’t have to put as many hours in at the 9-5 job and we can enjoy more free time since our money is growing and working for us. Do you know the percentage you earned on your 401-k last year? If not, spend a few minutes reviewing the information from your statements.

5.  Learn about tax planning. A CPA is knowledgeable and ready to help. Listen to their advice. They know what your numbers are and how to use them to your advantage. We have to pay taxes but we can be smart about the taxes that we pay by learning about the strategies available to our situation.

6.  Learn about your insurance policies. Are you really insured with the best company? Do you have an agent that is available to answer your questions? If you didn’t answer yes to these questions, it might be time to do a little shopping. Know what your current coverage is and see if you can do better. Ask friends for referrals and interview at least 3 companies to see if you can get better coverage at a better rate.

I am a loyal customer and not a fan of plan hopping. But, if I feel that I can get a better value somewhere else, I will do a little research and ask a few questions.

Take one section a week and compare to see if you already have the best plan or if it is time for a change. This would be a good idea to revisit every year or two. By taking the time to compare every so often, we will always know what we have and not be surprised by the small print. Finances are complicated but they are not hard to understand if you invest a a little time and only work with advisors and sales people who can explain the details in terms that you can easily understand. If they can’t explain it, the product is of no value to you, it is only a money maker for them.

Put one lesson on your calendar each week and take a step forward. You won’t know everything you didn’t know at the end of the week but you will have made progress by spending a little focus time in each area. At the end of 6 weeks, reflect and act on what you now know. You should repeat this exercise as often as needed until you are comfortable with your financial decisions. It takes time to wrap our mind around financial literacy. The earlier we start, the savvier we will be with money and the less controlled we will be by the fine print.

I am here to help and answer any questions that you have. You can subscribe to my blog for future information or send me a message on my Facebook page at http://www.Facebook.com/ProjectDone which I will gladly answer.

Take Over The Bill Paying Chore

If you are a household where one person is in charge of budgeting and paying all of the bills and that person isn’t you, today would be a good time to make a change. It is never a good idea to be in the dark when it comes to your finances. What if something happens to the one in control of the money? What would you do first?

That would be worse case scenario but having a plan and the knowledge that comes with a budget, would go a long way towards your family’s security. If you like being in the dark because the idea of knowing how much money is going out vs. coming in, you are not alone. The budget can be a scary and daunting task. Why not get involved now to gain the knowledge that you need to protect your future.

If the person in your household loves the job of handling the money and doesn’t want to give it up or if you do not have any real sense of how to make a budget work, then I would recommend that you sit down with your partner on a regular basis to determine what you have, where it is, what you owe, and when it is due. Know where all of the paperwork is kept. Know the balances of your bank accounts. Discuss future plans for vacation, retirement, college funds, etc.

You might find out that the person in charge of the money at your house is only doing it out of obligation to you. They might hate shouldering the burden all alone. They might be doing a good job but a team always functions better than an individual. Find out if you are financially secure or if you need to roll up your sleeves and get to work.

Sharing ideas and goals can go a long way to making your dreams a reality. If this is your first time openly discussing money, you might feel a little awkward but the sooner you do it and the more committed you are to it, the easier and more natural it will become because it is an ongoing conversation. Stay committed to being part of the solution so that you are not part of the problem.

Our kids need to have a firm grasp on handling finances and if both parents are able to discuss this topic reasonably and calmly, our kids will greatly benefit. Money conversations and spending styles are different from person to person. Knowing how to work through these different styles can create a stronger family unit. A world full of people who can discuss their finances, owning their victories and mistakes, is more enjoyable and less stressful!

I am here to help and answer any questions that you have. You can subscribe to my blog for future information or send me a message on my Facebook page at http://www.Facebook.com/ProjectDone which I will gladly answer.