I’ve worked for a lot of startups and I love the rush of getting something started and seeing it grow. I’ve worked in a field that barely existed when I graduated from college. Very few companies I work with are even 10 years old. I love what I do, but I’ve gotten an inside view of another type of company.
Now that I’m married to a financial planner and through him I’ve got to experience another kind of business. One that’s been here a while. First Command financial planning company celebrates 50 years in business this year. They started off helping military families and now serve middle class America who want to plan for the future financially.
Here’s what impresses me about First Command:
Honesty. In good times fraud and cheating may go unnoticed, but not in today’s economy. Attitudes have changed quickly. Instead of being envious of the rich who flaunt their wealth, people have come to despise that. People have gotten reason back. I don’t think First Command ever lost that. They recently went through an intense audit and again I saw honesty and providing a good service at a good value. I appreciate their honest approach to business.
First Command treats their people well and reward the right things. Since First Command plans for the future they don’t have to panic at the last minute. They focus on training and developing their top performers for the long term. When we go to First Command events I can expect it to be well done and they do things with class. They take care of the small details to create a great atmosphere and get feedback on how to improve. They clearly reward success.
Values. The company isn’t panicking because of the economy. They have reserves. They apply the principles they use to guide their clients to financial security. I plan to post about their credit card and bank because it’s first class. Also, the company upholds values of integrity, loyalty, and freedom. They value marriage and families.
When my husband travels he’s not exposed to cheating and partying (they have fun but it’s not way out of control). There are examples of strong relationships – even in our office it is like family. We have a great time together.
At First Command’s 50th anniversary gala this month we talked to the person next to us at breakfast. He taught us about building a strong marriage. I learned from him and respected him by the time we finished eating. I have experiences like this regularly.
First Command seems to have aligned themselves with the values the military holds but seems to have strayed from. It’s like what network marketing wants to be but rarely achieves. In both, people own their own business but still have oversight from a parent company. Both preach values and tend to be creative and amazing at rewarding their top performers.
Every business has problems. Like many older companies there are things to grapple with. They’re not immune. I just have a lot of respect from what I’ve seen up close for the past eight months. I think my husband has been with them for 8 years now. I have never been with any company that long.
It’s been a stressful time of changes which I heard about while we were dating. But unlike other companies where they have clamped down on everything and hurt morale tremendously, the tone of the company is supportive. It is not condemning, distrustful, or threatening.
This week we had some important decisions, they met with the office and gave him advice, but they trusted their advisers and staff to come up with a solution. I just got a call from Stephen about a solution that looks like it will work. We’re both sleeping better!
Trust has never been more important and from my view, First Command is a company that deserves that trust.
I’ve seen some financial planners who are feeling pretty down right now. Their clients are calling, complaining about the market, wanting to pull their investments. Some even want to stop their life insurance (what???) or change to a less expensive policy. It’s always surprising (to them) when they learn that due to health problems they can’t even qualify for a new policy.
I learned my new chiropractor used to be a financial planner. Some financial planners I know might not make it and will be looking for work.
When times are leaner, it’s time to insure against losses – it’s not a place to cut costs. Cutting costs is not an investment strategy. Neither is fear. We can cut back and cut back but we must also save and invest so we have something left for tomorrow.
The economy isn’t doing well – and that’s not news. Yesterday I read this: “The U.S. economy shrank at a 3.8 percent rate at the end of last year, in its biggest contraction since the deep recession of 1982, the Commerce Department reported Friday.”
The headlines are about job losses, and address fear:
To me, fear is like a cold, if you’re immune system is already weak, you can catch it. So strengthen yourself, surround yourself with people who have perspective, and keep moving forward. To me, fear is best counter-acted with planning. Financial planning is one of those things I need a team for. On my own I get intimidated and freeze up. Or I simply ignore my finances (not a good strategy either).
You don’t need to lose weight when you’re skinny. You don’t need health insurance when you’re young and healthy. When things are worst it’s a wake up call to action. In this case, to invest your money and build a future.
What are you doing to be calm and plan for the future when panic and fear are everywhere?
Leo who writes the Zen Habits Blog has a free ebook called Thriving on Less – Simplifying in a Tough Economy. Zen Habits is one of my favorite blogs and Leo is real but also lives what he teaches. He’s married with six kids, lives in Guam, and kicked a lot of bad habits and simplified his life. Now he inspires others to do the same.
Here’s an outline of his book (read it online or print out and take it to a printer to spiral bind it between 2 sheets of plastic).
Introduction
1. A Simple Lifestyle
2. Focus on the Essentials
3. Thriving on Less, Not Struggling
4. Focusing on Enough, Not More
5. Make Small Financial Changes First
6. Look at Large Expenses for the Long Term
7. Changing Your Spending Habits
8. A Guide to Getting Out of Debt
9. Tools for a Frugal Life
10. Resources
Maybe the economic crisis is teaching us something after all! CNN reports that for the first time ever, American’s debt shrunk! Read that, for the 1st time ever. Well, at least since 1952 when the Federal Reserve started collecting information about household debt.
“According to a Federal Reserve report released Thursday, consumer debt fell an annualized $30 billion, or 0.8% in the third quarter to $13.91 trillion.”
Our collective net worth has fallen too – to $2.8 trillion, or 4.7%, in the third quarter.
This is good news, a silver lining in otherwise dreary news we’ve had this year.
Here’s a resolution for the new year: get out of consumer debt and start investing with a Utah Financial Planner.
I love that our son’s teacher is teaching him the value of money at school. He does homework and instead of getting a sticker or smiley face, he gets paper coins. Later he can use the “money” to buy things at the “store.” The store has small, inexpensive items that kids would like. I told him how it took me much longer to realize the value of money.
We’re also teaching him at home. He recently asked his dad how business is going. Not sure if that’s good (he might worry if the answer isn’t all roses). But he’s aware.
The Get Rich Slowly Blog has a list of books that teach kids about money. They are all reasonably priced, under $10. For used copies it’s even cheaper:
The Totally Awesome Money Book for Kids
by Arthur and Rose Bochner. “Arthur wrote the original version of this book when he was 11. Now, at age 24, he’s teamed up with his 14-year-old sister to revise it.” Ages 9-12.
The author makes a good point – people are more receptive to books when they already have an interest and are ready. I try to cultivate this interest with my son. Never use books as a way to get people to change who aren’t ready – it won’t work and can turn them off to the subject completely.
Wine.
The bad financial news: You’re paying 300-400% mark up per glass over what you’d pay for a bottle in most retail stores! Workaround: some states and restaurants will let you bring in your own bottle of wine. Pay the restaurant to open and cork it for about $10. Or, you may be able to order a bottle and take the rest of the bottle home to drink after you’ve had what you want to drink at the restaurant.
Pre-cut fruits and vegetables. The bad financial news: You pay at least double the cost for pre-cut produce versus buying their whole counterparts. You also don’t get the full amount of vitamins. Workaround: Buy produce whole, and when you get home, cut it up and put it in ziplock bags ready to eat or cook. My husband likes to soak veggies in water if you’re eating them raw. You can do that up to a day ahead of time.
Popcorn at movie theaters. The bad financial news: You could be paying a 1,300% markup on a tub of popcorn at the movie theater. Plus, it’s really bad for you. For example, a Small with butter has 580 calories 47 grams fat. Think you’ll just skip the butter? Still, bad news. A Medium (no butter) has 650 calories, and 43 grams fat. Workaround: Eat before you go.
Bottled Water
The bad financial news: “Did you know that the two biggest brands of bottled water in America –Dasani and Aquafina — are nothing more than purified tap water? In fact, estimates are that 40% of all bottled water is tap water. ” Plus, bottled water can cost 10,000 times more than tap water. You’re paying for packaging and branding. Workaround: Refill water bottles with your own purified water.
Coffee at restaurants The bad financial news: The mark up is huge on coffee at restaurants. At $2 or more a cup, for something you could make at home for about 50 cents. Workaround: Drink coffee at home and drink water at restaurants or limit the number of times you drink coffee out.
If you limit drinking wine, coffee and bottled water, you can eliminate what can be a big chunk of money each year. Besides that the calories and caffiene aren’t the best for your health. If you’re healthier, life will cost less for you because you’ll have less trips to the doctor and lower risk for major health problems. Your pocketbook will also be fatter, even if you’re not!
Most of us have some bad financial habits that are tough to break. Focus on cutting back or eliminating one thing at a time. Find a replacement that you can enjoy that doesn’t cost as much.
“Most of the time we relate to money as something separate from ourselves – a “thing” to be managed, lost, spent, or saved – but rarely do we appreciate the use of money, with its myriad implications…” – Landmark Education
“People imagine that money will provide personal fulfillment for themselves and their loved ones, that it will give them a sense of security and exciting new possibilities for their life ahead.”
Isn’t that interesting that money is possibility. One thing I learned at Landmark is to be less fearful of money. Of course money itself is fancy paper. Nothing more or less. But our emotions are attached to money. If you don’t have enough to cover the basics of life, it’s incredibly scary.
Money is attached to power, to control, to our fears — even our spirituality is tied to money. We can feel guilty for not giving enough, for having more money than others. We feel great when we give to a cause or a person – when money is an expression of our generosity. As a country we have a lot of anxiety about money right now.
Fear of not having enough money can make people do crazy things. People will ignor other people’s needs to save money, as evidenced in the death of a Walmart employee who was killed in a stampede of shoppers who wanted a Black Friday deal.
“There is a lot of fear surrounding our finances: fear of dependency, fear of success, fear of failure, fear of loss, and fear of the unknown.”
The thing is you can never have enough money to wipe away all of your fears. Even the ultra-rich can feel incredibly poor or have wants bigger than their bank accounts.
If you live in a poor country and have money, part of your survival is learning to ignore beggars and poverty you see everywhere all of the time.
What are your fears about money? What does it represent to you? What things have you done or creative ideas have you had that help you in managing your money?
Here’s a great example of a telecommunications business that is financially free because of the way they have done business – without debt:
“The good news about FiberLight is that it has been self-funded since the day of its inception. We carry no debt and we borrow no money, so we don’t need the capital and the credit markets”
If you’re starting a business, and have planned well, perhaps you could do the same. I know a young millionaire who did that. He sold everything he could to get capital and started a business online. It took a year to become a millionaire. That is extraordinary but a great example.
If you don’t borrow money you won’t need credit which either may not be available or may be very expensive. Here’s another quote from this wise businessowner Michael Miller:
“…we want to continue to expand our reach in all of our markets…we want to continue to grow, but not to the extent that we cannot take care of our customers. We’ve seen too many communications companies explode in growth and leave the customer behind. We want to make sure every one of our customers gets the same level of attention they get today, no matter how large we get.”
Also, Miller said:
“What we’ve done, to ensure we don’t have to borrow money, is have a very short return on investment. We try to get our money and our profit within nine months of a sale. Our competitors, historically, will go 30-48 months before they see a return on their investments and some companies even longer than that.”
So if the economy is getting you down, be encouraged by the businesses who have planned ahead. This is what carries America in these times. It’s also what will carry you. The ethics and principles this business operates by is inspiring.
My friend at Jibberjobber has been writing about age discrimination. He’s recounting the story of someone who lost his job and how a much younger replacement showed up. It wasn’t handled well and the man wasn’t prepared to retire early.
Today he gave this advice (I’m only focusing on two points, he made three. The last one was more specific to his situation):
(1) Financial discipline.
I was preparing for retirement. But, I should have done better. Saved more. Hired a financial adviser; not some brokerage flunky. Been more focused on the “what if”. What if the bridge comes up short? That was a question I should have been asking all along. How’s your financial pyramid? Can it stand up to a tsunami of a premature job loss?
(2) Diversified income stream
Followed my own thinking, I should have created my own internet business. Hard to do, yes. Shoulda, coulda, woulda. They will kill you. I had ideas that I could have “spun out”. The internet is perfect for “part time” jobs. Instead of trying to convince younger people to do it, I should have done it myself.
Starting an Internet business is a great avenue to develop another revenue stream. If you have an idea learn how to research demand online (using keyword tools which are often free).
Just like losing weight or any behavior change, having someone give advice and monitor progress improves results. A financial planner is like that. They can guide you so you’ll have a secure foundation and be able to weather financial downturns with less pain.
My husband, who is a financial planner in Layton UT talks about the people who come to his office AFTER something has happened. AFTER they get cancer and don’t qualify for insurance. Many live for now only, and have leveraged the future. Or, they are supporting adult children totally capable of supporting themselves. He’s very good at giving and living by his own advice to invest in your financial future. It’s harder for me.
As this man points out, you may need more money than you think to tide you through job loss and I add through whatever might come. Thankfully this man has the health and job skills to be availble for work.
