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Seven Financial Habits V2
 

Seven Financial Habits V2

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Seven Financial Habits of Healthy People.

Seven Financial Habits of Healthy People.

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    Seven Financial Habits V2 Seven Financial Habits V2 Presentation Transcript

    • Seven Financial Habits of Happy and Healthy People Patrick A. Haake 2600 Grand Ave. Suite 600 Kansas City, MO 64108 816-412-1547
    • Healthy Behavior = Living Better If you’re like most people, you want to make healthier choices for yourself and your family • Eating nutritious foods • Exercising regularly • Seeking guidance from health professionals
    • Healthy Behavior = Living Better Have you considered how money is affecting your health and wellbeing?
    • Could You Be Happier? Healthier? According to a new study, many of us could be happier, more confident, more optimistic and less worried, regretful and disappointed… Northwestern Mutual / LLuminari 2008 Study
    • Could You Be Happier? Healthier? IF… we focus on our financial wellness Landmark Study discovery: People who take control of their finances are healthier and happier. Northwestern Mutual / LLuminari 2008 Study
    • The American Pressure Cooker • For the majority of Americans, money is a leading cause of stress and we’re losing precious sleep over it – an average of 21 hours of sleep each month • Last year, people reported more stress over work and money • One-third of people report experiencing extreme levels of stress “Stress in America” study, American Psychological Association, Sept. 2007.
    • The Perfect Storm: An Unhealthy Cycle • More than 60% of affluent adults say they aren’t saving enough for the future.1 • We’re spending more and increasing debt levels to “afford” our lifestyle. • Stress can influence negative coping behaviors – eating unhealthy, smoking or drinking too much.2 “Inside the Middle Class: Bad Times Hit the Good Life,” Pew Research Center, Feb. 2008 1 “Stress in America,” American Psychological Association, Sept. 2007. 2
    • • 2008 study commissioned by Northwestern Mutual in partnership with LLuminari- physicians network • Northwestern Mutual partnered with LLuminari, a privately held health education and media company • Exclusive agreement with Northwestern Mutual to develop a landmark study focusing on how financial “health” impacts physical health • Researched among 2,400 Americans nationally  Health behavior and well being  Financial behavior and well being
    • Questions • Is Financial Security a Priority? • How prepared do you feel? • Are you taking active steps to achieve financial goals? • Do you work with an Advisor? • How would you rate yourself on Health?  Happiness?  Stress Levels?
    • Habits of the Healthy, Wealthy & Wise
    • Taking active steps to feeling financially secure… People who are taking active steps toward achieving their financial goals say they’re: • In excellent to very good health • Happy, optimistic and confident • Not – worried, depressed or regretful • They also report lower stress levels and fewer stress-related health symptoms. Northwestern Mutual / LLuminari 2008 Study
    • 7 Financial Habits of Healthy People 1. Have a financial plan 2. Have short-term and long-term financial goals 3. Are taking active steps to achieve their goals 4. Have taken steps to protect family from financial misfortune 5. Pay off credit cards each month; good credit 6. Spend within their budgets 7. Work with a financial professional Northwestern Mutual / LLuminari 2008 Study
    • Taking Action: Putting 7 Financial Habits to Work “Planning ahead financially helps ensure a healthy future – body, mind and spirit.” Elizabeth Browning LLuminari CEO and Co-founder
    • Step 1 Have a financial plan • Doesn’t need to be a 50-page document • Know your expenses, your income and plan what to do with the difference • Calculate your net worth to determine where you stand
    • Step 2 Set short- and long-term financial goals • Goals for the next 3 months to year  Paying off debt  Saving for a vacation • Five to 10-year goals  Buying a larger house  Saving for child’s college education • Where you’d like to be in 20+ years  Retirement funding
    • Step 3 Take active steps to achieve goals • Analyze your financial behavior – Why aren’t you taking action? What triggers spending? • Track spending; find ways to cut back • Increase 401(k) contribution level • Automate savings with payroll deductions • Research college funding options
    • Step 4 Take steps to protect family from financial misfortune • Establish an emergency fund • Protect assets and income – life and disability income insurance • Consider long-term care insurance
    • Step 5 Pay off credit cards each month; have good credit standing • Don’t use credit to live beyond your means • If you tend to over spend, pay with cash only • Avoid late payments and penalties
    • Step 6 Spend within your budget • Save first; spend what’s left rather than the other way around • Plan ahead for larger expenses • Focus on “needs” and hold off on “wants” until you have the cash • Avoid impulse purchases
    • Step 7 Work with a financial professional • People who work with a financial professional are more satisfied with their financial progress and have higher assets • Good financial professional should focus on your unique needs and goals • Should be someone you trust to help you talk about uncomfortable issues
    • Taking Control of your finances is key to living and feeling your best It’s not about how much you have, it’s what you do with what you have.
    • Q&A & QA
    • Quiz
    • The Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries and affiliates. Financial Representative is an insurance agent of NM. Products and services are offered and sold only by appropriately licensed entities and Financial Representatives.
    • Gender Differences Healthy men and women share the same financial habits, but women: • Attach significantly more importance to feeling financially secure • Fewer women feel financially secure • Are feeling less financially prepared Northwestern Mutual / LLuminari 2008 Study
    • Financial Matters Important to Women Women place a higher value on having enough money to: • Retain a comfortable lifestyle in retirement • Pay off debt • Maintain comfortable lifestyle even if disabled and unable to work • Maintain comfortable lifestyle while employed • Not lose most/all of savings to pay for LTC Northwestern Mutual / LLuminari 2008 Study
    • Happy but Tired and Stressed Women say they’re healthier and happier than men. But, women: • Experience more stress than men • Report more physical symptoms of stress  Fatigue, low energy, sleep problems, anxiety, muscle tension, difficulty concentrating • Think they manage their stress poorly Northwestern Mutual / LLuminari 2008 Study
    • Cultural Differences Hispanic Americans share the same financial habits as the population in general, but Hispanics: • Attach significantly more importance to financial security (77% vs. 67%) • Are more likely to say their situation is causing them worry or stress Northwestern Mutual / LLuminari 2008 Study
    • Cultural Differences Hispanics are more likely to say: • Money is a source of stress in their relationships. • They worry that their financial situation is hurting their health. Northwestern Mutual / LLuminari 2008 Study
    • Financial Matters Important to Hispanics Hispanics place a higher value on having enough money to: • Pay off debt • Be secure in case of a disability • Maintain a comfortable lifestyle while employed • Provide for family in case of death • Afford to send children to college of choice Northwestern Mutual / LLuminari 2008 Study
    • Financial Preparedness Hispanics more often report working with a financial advisor…which may be the best step toward achieving financial security. Northwestern Mutual / LLuminari 2008 Study
    • Disclosures The Northwestern Mutual Financial NetworkTM is a marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, its affiliates and subsidiaries. The products and services referenced are offered and sold only by appropriately appointed and licensed entities and Financial Representatives. Each Financial Representative is a licensed insurance agent and represents one or more, but not necessarily all, of the entities shown. The Northwestern Mutual Life Insurance Company (Northwestern Mutual), Milwaukee, WI (life insurance, disability insurance and annuities) is neither a registered investment advisor nor a registered broker- dealer. Strategic Employee Benefit ServicesTM is a nationwide group marketing program providing specialized services in the employee benefit arena exclusively through the Northwestern Mutual Financial NetworkTM . Securities are offered through Northwestern Mutual Investment Services, LLC, member NASD and SIPC. 1-866-664-7737. Russell Investment Group is a registered trade name of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of Northwestern Mutual. Northwestern Mutual Wealth Management Company, Milwaukee, WI, a wholly-owned company of The Northwestern Mutual Life Insurance Company, is a limited purpose federal savings bank and registered investment adviser. Long-term care insurance is offered through Northwestern Long Term Care Insurance Company, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, WI. This policy is intended to be a tax-qualified long-term care contract. This material is produced for the marketing and solicitation of insurance. The Todd Organization is the marketing name for Todd Consulting, Inc., which is affiliated with Northwestern Mutual, and provides and administers executive benefit plans. Mutual funds are offered and sold by prospectus only. You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a contract and fund prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.