Financial life planning is about more than just money. A financial life planning approach can provide a deeper meaning to the management of personal finances. Every person going through the tax resolution process needs a vision, purpose, and a plan if they want to succeed. George Kinder is a well respected financial planner and a leading proponent of the life planning movement within the financial planning industry. His financial counseling process includes three questions that are popular for their ability to help clients focus on what really matters to them about money. While I have adapted a version of these questions for the tax resolution client, similar questions are also asked of my Fee Only financial planning clients.
The main purpose of this exercise is to begin thinking about what you want your money to do for you. The first question is designed to initiate the process of thinking about all of life’s possibilities; the second and third questions are created to help people with tax troubles focus on their priorities in life.
Since the accumulation of excessive tax and consumer debt has such an immediate and overwhelming impact on household finances it is easy to lose sight of long-term goals and dreams. Looking beyond the current state of financial stress is an important way to help prioritize goals during the tax resolution process. It also helps to have something to work to achieve while reinforcing the need to attack your tax problems with passion and enthusiasm.
The life planning questions below should be used to help you identify what you want to get out of life. Since money plays such an integral role in our lives it is important that you are able to understand your values that lie beneath the surface of your financial world.
1. Imagine that you have paid off all of your tax and consumer debt. You owe absolutely nothing and have enough money to take care of your needs, now and in the future. How would you live your life? Would you change anything?
2. Imagine that you visit the doctor and he or she says you have only five to ten years to live. You will not feel any pain or sickness, but you will never know when death will actually come. What will you do? Will you change your life? How?
3. Finally, now try to imagine that your doctor says you have only one day left to live. Ask yourself: What did I miss? What did I not get to be or do? Do I have any regrets?
This three questions exercise is designed to tap into the heart’s core. What are your values? What is your vision?
Now is the time to start thinking about a life without any debt. Setting a goal to resolve a tax liability is usually the #1 priority during the tax resolution process as it should be. It can be difficult to look beyond the stress of the here and now when it comes to tax and financial matters. Establishing life planning goals add more meaning to the tax resolution process. If you have avoided debt and do not have a tax problem, these questions are just as relevant during your financial life planning journey.
Showing posts with label life planning. Show all posts
Showing posts with label life planning. Show all posts
Tuesday, November 3, 2009
Wednesday, April 8, 2009
Common Traits of Millionaires and Financially Secure Individuals
Financial change requires the understanding of past financial behaviors to figure out what needs to be changed. The development of positive financial behaviors will allow change to happen. This new approach to life and financial planning means there is a need to have models of success. It is generally not good to only place the focus on negative financial behaviors. That is the old way of approaching tax and financial matters. Instead let us shift our focus to positive models of success. Based on the work of Thomas Stanley’s "The Millionaire Mind", I have selected a set of positive behavior patterns of wealthy and successful individuals.
An analysis of the personality traits of millionaires and financially successful individuals is more than relevant during the tax and financial planning process. It is required. In order to achieve tax resolution and financial freedom you need to be able to identify some of the most common characteristics of people who have already accomplished success. You also need to strive to possess these qualities.
As you read these traits ask yourself if you possess these qualities. Be honest with yourself as you assess your internal resources. On a personal level I try to ask myself these same questions any time that I am faced with a major life decision.
If there are a few areas that are in need of improvement write them down and make a list of ways that you would like to improve. Keep in mind that you are not expected to currently possess all of these traits. However, the closer that you can get to 100% of these traits the easier your journey may be. Here are three of my favorites that were highlighted in "Tax Resolution and Financial Freedom".
1. Integrity
“Integrity is doing the right thing, even if nobody is watching.” - Author Unknown
Successful people never sacrifice their integrity and are always honest with themselves and others. If you behave with a high degree of personal integrity you have a greater likelihood of financial success. Most importantly, you will live a life of strong resolve and consistency. There are many wealthy individuals in this country who have amassed large sums of wealth through corruption and deception. The acquisition of wealth without integrity is not a sign of success. True financial success requires high standards of integrity through good and bad times.
2. Courage
“Promise me you'll always remember: You're braver than you believe, and stronger than you seem, and smarter than you think.” - A.A. Milne
“Courage is resistance to fear, mastery of fear - not absence of fear” - Mark Twain
Change requires personal sacrifice. To live like nobody else with a sense of financial freedom requires the courage to take risks and live like nobody else until you reach your goals. Often successful people are risk-takers, but more importantly they are courageous. They tap into the courage that lives deep inside them and use it to break ground, try new things and put themselves out in front. When making a commitment to learn new strategies and techniques you are taking risks.
It takes courage to admit failure and pick oneself off the ground and try again at anything in life. Courage is also needed to change one’s approach to taxes and finances. Some of the most successful people in this world have failed time and time again only to get up again and display the courage needed to accept the next challenge in life.
3. Willingness to Act
“Faith means belief in something concerning which doubt is still theoretically possible; and as the test of belief is willingness to act, one may say that faith is the readiness to act in a cause the prosperous issue of which is not certified to us in advance.” - William James
Knowing and doing are two separate things. The key ingredients of tax and financial freedom include three parts behavioral change and one part knowledge and expertise. Knowing what to do during the tax resolution process is important. Having the willingness to act on this knowledge is more important.
Successful people are willing to dig in, do the work and learn new things. They are simply willing to do whatever it takes to create the life they want. TAKING ACTION is a core theme throughout the Tax Resolution and Financial Freedom Process. Be willing to take the steps needed to improve your financial life.
-Scott Spann
LifeSpan Financial Planning, LLC
(843) 469-3505
An analysis of the personality traits of millionaires and financially successful individuals is more than relevant during the tax and financial planning process. It is required. In order to achieve tax resolution and financial freedom you need to be able to identify some of the most common characteristics of people who have already accomplished success. You also need to strive to possess these qualities.
As you read these traits ask yourself if you possess these qualities. Be honest with yourself as you assess your internal resources. On a personal level I try to ask myself these same questions any time that I am faced with a major life decision.
If there are a few areas that are in need of improvement write them down and make a list of ways that you would like to improve. Keep in mind that you are not expected to currently possess all of these traits. However, the closer that you can get to 100% of these traits the easier your journey may be. Here are three of my favorites that were highlighted in "Tax Resolution and Financial Freedom".
1. Integrity
“Integrity is doing the right thing, even if nobody is watching.” - Author Unknown
Successful people never sacrifice their integrity and are always honest with themselves and others. If you behave with a high degree of personal integrity you have a greater likelihood of financial success. Most importantly, you will live a life of strong resolve and consistency. There are many wealthy individuals in this country who have amassed large sums of wealth through corruption and deception. The acquisition of wealth without integrity is not a sign of success. True financial success requires high standards of integrity through good and bad times.
2. Courage
“Promise me you'll always remember: You're braver than you believe, and stronger than you seem, and smarter than you think.” - A.A. Milne
“Courage is resistance to fear, mastery of fear - not absence of fear” - Mark Twain
Change requires personal sacrifice. To live like nobody else with a sense of financial freedom requires the courage to take risks and live like nobody else until you reach your goals. Often successful people are risk-takers, but more importantly they are courageous. They tap into the courage that lives deep inside them and use it to break ground, try new things and put themselves out in front. When making a commitment to learn new strategies and techniques you are taking risks.
It takes courage to admit failure and pick oneself off the ground and try again at anything in life. Courage is also needed to change one’s approach to taxes and finances. Some of the most successful people in this world have failed time and time again only to get up again and display the courage needed to accept the next challenge in life.
3. Willingness to Act
“Faith means belief in something concerning which doubt is still theoretically possible; and as the test of belief is willingness to act, one may say that faith is the readiness to act in a cause the prosperous issue of which is not certified to us in advance.” - William James
Knowing and doing are two separate things. The key ingredients of tax and financial freedom include three parts behavioral change and one part knowledge and expertise. Knowing what to do during the tax resolution process is important. Having the willingness to act on this knowledge is more important.
Successful people are willing to dig in, do the work and learn new things. They are simply willing to do whatever it takes to create the life they want. TAKING ACTION is a core theme throughout the Tax Resolution and Financial Freedom Process. Be willing to take the steps needed to improve your financial life.
-Scott Spann
LifeSpan Financial Planning, LLC
(843) 469-3505
Monday, April 6, 2009
What is the “LifeSpan Process of Tax Resolution and Financial Freedom”?
I chose the name LifeSpan Financial Planning, LLC for my financial counseling and tax planning practice for a specific reason. An effective financial plan should do more than simply help individuals and families reach their financial goals. In my opinion, the planning process should include a holistic approach that addresses life planning goals as well as concepts of money management. A “LifeSpan Plan” helps define what is important to each unique individual and addresses underlying dreams and visions across the entire lifespan. It also helps individuals and families find ways to maximize the resources available to accomplish these lifelong ambitions. My main goal as a professional has always been to help my clients achieve important life goals and understand the role that money plays in their lives.
Financial planning is both an art and a science. Life planning is a relatively new approach that is usually seen as the art or human side of financial planning. The process of life planning is used to help people discover their deepest and most profound lifelong goals. This can be accomplished through a process of self-awareness and inquiry. If major obstacles such as significant tax debt or poor financial management exist it is difficult to focus on life and financial planning goals.
Tax problems create a need for tax and financial planning strategies that will solve tax issues the best way possible. On the surface it would appear to be a fairly simple approach. This assumption is based on the belief that most people deal with money in a rational way. The reality is that there are many cognitive-behavioral factors that operate as barriers to change in the lives of people with tax problems. These tax liabilities are significant obstacles that delay or prevent people from accomplishing their innermost dreams in life.
Tax Resolution and Financial Freedom is a two-stage process that combines two primary areas of focus: tax resolution and financial planning. Tax Resolution and Financial Planning are typically viewed as separate processes. This system simply does not work due to the sometimes conflicting approaches that do not generally work together. You must start the tax resolution process to be able to progress into comprehensive financial planning. The line between the two stages should be viewed as a barrier that stops people from achieving financial freedom. Tax resolution must be achieved prior to working to accomplish most financial planning goals. Otherwise, you will keep running into the brick wall that blocks the path to financial freedom.
As a whole, the “Tax Resolution and Financial Freedom Process” can be overwhelming and confusing. If you break the process into two parts it becomes a more manageable process. A strong need exists to create a new paradigm for dealing with tax problems. Debt is dumb. Tax debt is dumber. Trying to deal with tax and financial problems without a strategic plan is pure stupidity. Good intentions without direction will most likely lead to eventual failure. This step by step plan has been created to provide the direction needed to address tax problems with a plan.
Financial planning is both an art and a science. Life planning is a relatively new approach that is usually seen as the art or human side of financial planning. The process of life planning is used to help people discover their deepest and most profound lifelong goals. This can be accomplished through a process of self-awareness and inquiry. If major obstacles such as significant tax debt or poor financial management exist it is difficult to focus on life and financial planning goals.
Tax problems create a need for tax and financial planning strategies that will solve tax issues the best way possible. On the surface it would appear to be a fairly simple approach. This assumption is based on the belief that most people deal with money in a rational way. The reality is that there are many cognitive-behavioral factors that operate as barriers to change in the lives of people with tax problems. These tax liabilities are significant obstacles that delay or prevent people from accomplishing their innermost dreams in life.
Tax Resolution and Financial Freedom is a two-stage process that combines two primary areas of focus: tax resolution and financial planning. Tax Resolution and Financial Planning are typically viewed as separate processes. This system simply does not work due to the sometimes conflicting approaches that do not generally work together. You must start the tax resolution process to be able to progress into comprehensive financial planning. The line between the two stages should be viewed as a barrier that stops people from achieving financial freedom. Tax resolution must be achieved prior to working to accomplish most financial planning goals. Otherwise, you will keep running into the brick wall that blocks the path to financial freedom.
As a whole, the “Tax Resolution and Financial Freedom Process” can be overwhelming and confusing. If you break the process into two parts it becomes a more manageable process. A strong need exists to create a new paradigm for dealing with tax problems. Debt is dumb. Tax debt is dumber. Trying to deal with tax and financial problems without a strategic plan is pure stupidity. Good intentions without direction will most likely lead to eventual failure. This step by step plan has been created to provide the direction needed to address tax problems with a plan.
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