One Journey Consulting

January 2009

Happy New Year! It is two weeks into 2009 and we hope you are on your journey to make this your best year. This month's newsletter brings you two inspiring messages. Renee Cooper challenges you to decide which path you want to take in your divorce and who you want to be when it is over. We want you to know there is always a choice. 

 Also at One Journey Consulting, we believe you can learn from difficult events and use them for discovery and growth. The current economic crisis is a great example of a stressful situation that can be viewed as an opportunity to learn about your cash flow and current financial picture. So our guest this month, Renee Senes, lends her financial consulting knowledge and offers step-by-step advice for taking control of your finances. Important information for anyone with a bank account, mortgage, budget, etc. Please check it out and know that One Journey Consulting wishes you all the best for 2009!

Sincerely,

Renee Cooper and Di Hall
One Journey Consulting

On Being the Captain of Your Character

Though not the master of one's fate, one may still be captain of one's soul.-- Philip Brickman  

Divorce can bring out the worst in people: your ex (or his sister or her best friend) calls you unflattering names. Or you discover your ex has misrepresented his finances or broken the terms of your custody agreement. Or a couple you once considered good friends are now solidly aligned with your ex.

You will undoubtedly face situations like this that trigger deep and powerful emotion. You may be tempted to react in kind, to fight fire with fire. You may think "It's only fair, they started it. I have to defend myself," . The only sensible option - indeed the only option at all - seems to be to follow their lead and play their game.

You probably set out on this divorce journey vowing to take the high road, to behave better than the average divorcing couple. And yet, you find yourself in the middle of some hard, emotionally charged situation and every fiber of your being wants to strike back.

This is the choice point. The fork in the road where you get to choose Who You Are, and Who You Want To Be.

A dear friend once asked me: "So when do you stoop to their level? At some point, don't you just have to play their game?" My answer is this:  If you react in kind, you are allowing someone else's level of spiritual and emotional development to determine your own.

And that is the other fork; the road to self-respect and self-esteem. The choice to respond in a way that is consistent with your morals, your values, your integrity, your highest vision of yourself. To be the captain of your own character.

This is why the Journey of Divorce can be such a powerful opportunity for personal and spiritual growth. The journey gives you so many of these moments in which you are tested, and have one more chance to choose in a way that honors who you really are.

Taking Control of Your Finances in 2009

Do you know your credit score or details of your annual Social Security report? Can you find the deed to your house, mortgage, life insurance policies, car title, car insurance policies, brokerage and bank statements for the past year and tax returns and bank year end statements for the past 5 years? If so, well done. If not, don't worry. We can make 2009 the year you take control of your finances.
 
Managing your finances is not about knowing which stock, bond or mutual fund to buy. It's about knowing what you own (assets); what you owe (liabilities); what's coming in (income) and what's going out (expenses). It is about paying attention to where your money is going and being organized. To get started, clear off a workspace and gather all your statements: bank, brokerage,  credit cards, etc. Other supplies: paper, pen or pencil, 3-ring binder, hole punch, index dividers, computer and sense of humor.
 
First, tabulate your net worth (difference of what you own versus what you owe): make a list of everything you own: house, car, brokerage accounts, life insurance, retirement accounts and their value (the Internet can help www.kelleybluebook.com, www.zillo.com). Then, list everything you owe: mortgage, car loan, credit card debt, school loans and their value. Keep this information stored in Section 1 of your 3 ring binder.
 
Next, find where your money is going (the cash flow), or the reality of not having a clue as to where you spent all that money. The easiest way to determine your cash flow is a computer program like Quicken or QuickBooks. If you prefer not to use the computer, this can be done with columns or on graph paper. 
 
To make the budget sheet, gather your checkbooks, check stubs and charge card statements. Put each expenditure in a category and a subcategory. Example: Utilities: phone, Utilities: cell phone, Utilities: cable and enter your expenses for each month. You will get a total for each subcategory as well as a total for the whole category of Utilities. Don't forget to enter your income, including income from child support and alimony. Print a report every month, and quarterly report every 3 months. Put these in a Cash Flow or Budget section of your binder.
It may take you several months to get a picture of your income and expenses but it will become the foundation to manage your finances.
 
With a handle on your cash flow, you can look for places where you can reduce expenses or control spending. Try taking 10% off the top of your income as savings. Then, rework your expenses to see if you can still manage. Utilize whatever amount of money you are able to save to (put this information in your Savings Goal section of the binder):

• Get out of debt - pay down credit cards and loans
• Have an emergency fund not invested in the stock market. Aim for a minimum of 3 months of household expenses in savings. If possible, have an additional 3 months in a short term CD or money market account
• Take advantage of retirement plans:
• If you have an employer sponsored plan such as a 401k, 403b or a SIMPLE with a matching contribution from your employer, fund this 1st.
• Fund your IRA's or ROTH IRA's for 2008- 2008 limits are $5,000 + $1,000 catch up for those over age 50. You can make 2008 contributions up to April 15, 2009.
• Fund your IRA's or ROTH IRA's for 2009- 2009 limits are $5,000 + $1,000 catch up for those over age 50. Contributions can be made January 2, 2009 to April 15, 2010

One last thing, order your free credit report (as allowed by federal law) from each of 3 companies: Equifax, TransUnion and Experian. Go to www.annualcreditreport.com.
 
Armed with this information, a consultation with your financial planner can help you refine your goals and focus for the future. Be sure to ask if what you own meets your investment objectives, how risky your portfolio is, whether you are saving sufficiently for retirement. Managing and being in control of your finances is about knowledge. Take these steps in 2009 and you'll reap the benefits for years to come.
 

Renee W. Senes is a financial consultant with Investors Capital Corporation Member FINRA/SIPC and an independent investment advisor representative affiliated with Investors Capital Corporation Advisory. A focal aspect of her practice is working with people in all stages of the divorce process to ensure that they have sufficient income and assets to sustain and support them throughout their lives.  She can be reached at rsenes@investorscapital.com.

 
Readers of the newsletter will receive a 10% discount off the cost of the first meeting.

About One Journey Consulting

One Journey Consulting is a coaching and consulting practice dedicated to personal renewal and rediscovery, particularly through the experience of divorce and other significant life transitions.  Services include weekly workshops, one-day seminars, individual coaching and weekend retreats. For more information, visit www.onejourneyconsulting.com. 

 
75 Claypit Hill Road                             Wayland, Massachusetts 01778                         508-276-1764