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This is the time of year when we reflect on possible seasonal excesses and think sober thoughts of cutting back, diets, etc. In the past I have mentioned variations of the dreaded ‘B’ word , and have provided a tool for keeping track of your spending.

Before you yawn and say ‘Not again Cindy Scrooge.’, let’s look at finances from a fresh angle.

What does this saying mean to you? “A part of all you earn is yours to keep.”(1)

Some of you may have seen the commercial of the young guy on the street where different strangers are helping themselves to money from his wallet. Eventually he is left with nothing except an old

woman warning him she will be looking out for him, or more likely, his wallet.

‘A part of all you earn is yours to keep.’ Yet we willingly enable others to become richer and what does that do to our bottom line? It’s red and thin and theirs is thick and black.

How does this enriching of others at your expense happen in real life? Consider a typical month: buy a coffee or 2 or three go for lunch a few times a week, buy gas, clothes, gifts, pay your cable cel phone etc etc.

At the end of the month have you paid yourself? ‘A part of all you earn is yours to keep.

Here we are in the season that is supposedly summer. Hopefully everyone is enjoying their holidays.

A couple ‘events’ that my clients have experienced highlight the importance of keeping up with paper correspondence. I can see you all rolling your eyes equating ‘paper’ with ‘dinosaur era’.

Paper correspondence in the financial industry is issued for regulatory reasons. Regulations exist for the client’s protection as an investor. You will see why this is important later on.

Here are examples that highlight the importance of due diligence on your part as a responsible financial citizen.

“People are living longer than ever before, a phenomenon undoubtedly made necessary by the 30 year mortgage.”(1)

Want to know how quickly financial facts change? Consider that since I intended to write this newsletter the government has instituted a 360 degree change in the way banks will now be able to lend money. Previously the sky was the limit with 40 year mortgages being touted as the answer to buying that dream home. Down payments were considered unnecessary.

Now a homebuyer must have a minimum 5% down payment and an amortization period of no more than 35 years effective October 15, 2008.

What was the reason most potential homeowners went for a long amortization and no down payment? It is because the banks know human nature well enough to exploit this one tendency:

Good Intentions Rarely Get Translated into Action

Well here we are in 2008 already. December and the Christmas season whizzed by. I was only able to get my Christmas tree a week before Christmas and decorated it only the weekend before!

Let’s start 2008 on a positive note; a different take on the list of New Year’s resolutions.

Here are the top 10 factors that will enable you and your family to be financially successful. These tips are invaluable because they come from my experience working with all of you. I have been privileged to see many of my clients increase their net worth, making great progress towards a future of financial independence.

So here they are in logical order

This Issue #6 will cover several popular questions various clients have posed. To start, here is question number 1:

How much money is enough to retire/invest? Haven’t we all thought the following?

• If only I could get a raise, or a better paying position, I could invest.If only my spouse could get work.If only my spouse could get a better paying job or a raise.Maybe I should get a second job.
• Life would be so much easier if I had a bit more money.

Does having more money make financial planning easier? Let’s answer this question with a series of questions.

• Would more money help you change your spending and saving habits?
• Would more money help you distinguish and prioritize between wants and needs?
• If you and/or your family had more money would you know where it would go?
• If it is difficult to wisely manage your current salary, would more money make a positive difference?
• How many lottery winners stay rich?

It has often been said that three types of people in life: The spender, the lender, and the investor.

“Poor people buy stuff, the middle class buy liabilities, and the wealthy buy assets.”

Let’s take a look at these truisms.