FPA Anaheim/Nexgen 2009, joint presentation with Amy Mullen from Money Quotient

1. 1 Linking Cash Flow Management & Life Planning Your Most Important Client Conversation for 2009 Copyright 2009 First Step, LLC & Money Quotient, Inc.

3. Where do you want to be?

4. What are you willing to do to get there?2 Copyright 2009 First Step, LLC & Money Quotient, Inc.

6. Both facts and feelings drive financial decision makingRational Emotional Copyright 2009 First Step, LLC & Money Quotient, Inc.

8. No two people see “what’s going on” in the same way

9. We are highly influenced by others in the development of these constructs4 Jacqueline Kelm Appreciative Living Copyright 2009 First Step, LLC & Money Quotient, Inc.

11. Helping your client to “see” and articulate his/her frameworks is often the first step to working through an issue

12. This kind of discovery process leads to proactive conversations5 CoachVille, LLC Copyright 2009 First Step, LLC & Money Quotient, Inc.

13. 6 Key to Effective Communication “Seek first to understand, then to be understood.” Stephen Covey 7 Habits of Highly Effective People Copyright 2009 First Step, LLC & Money Quotient, Inc.

17. 10 Living Life on Purpose “When you have a dream and a plan working together in the construction of a life chapter, you have a ‘mission,’ a circumscribed purpose that defines your use of time and space for the duration of this particular life chapter. People with a mission know where they want to go.” Frederic M. Hudson Mastering the Art of Self-Renewal Copyright 2009 First Step, LLC & Money Quotient, Inc.

18. 11 A Guided Process Exploring Values & Motivations Creating a Framework for Decision Making Financial Planning Facilitating a Goal Setting Process Copyright 2009 First Step, LLC & Money Quotient, Inc.

19. 3 key entry points Levels of Satisfaction ©2009 Money Quotient & First Step Cash Management, LLC. All Rights Reserved. 12

20. ©2009 Money Quotient & First Step Cash Management, LLC. All Rights Reserved. 13 3 key entry points 2. Life Transitions

21. ©2009 Money Quotient & First Step Cash Management, LLC. All Rights Reserved. 14 3 key entry points 3. Goal Setting

23. 16 Linking the Conversations Life Conversations Financial Conversations Cash Flow Copyright 2009 First Step, LLC & Money Quotient, Inc.

25. The financial conversations are the planners arena

26. Being able to transfer between those to areas is a powerful tool to facilitate changeCopyright 2009 First Step Cash Management, LCC & Money Quotient, Inc.

28. ©2009 Money Quotient & First Step Cash Management, LLC. All Rights Reserved. 19 What is the difference between budgeting & cash flow?

29. This is your client’s Cash Flow Income into household Credit Card Cash ATM Master Checking Account “Mad Money” Credit Card Dining Insurance Medical Home Mortgage Entertainment Car Loan Utilities Groceries Shopping 20

30. A New Way to Talk about Cash Flow Let’s shift our thinking a bit… Imagine that your client has three “buckets” of money…

32. Control Bucket™– the money will be spent in the next 7 days

34. 24 Linking the Conversations Life Conversations Financial Conversations Cash Flow Copyright 2009 First Step, LCC & Money Quotient, Inc.

35. 25 Cash Flow as a Bridge “By showing them a simple analysis of three numbers and a corresponding bar chart, for the first time in their lives, they really begin to understand their money. From the planner’s perspective, many things begin to emerge. Money scripts begin to pop out without probing. The figures themselves describe the client’s values and priorities. From something as basic as cash flow, we understand their money decisions better than we ever could have before.” Copyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

36. 26 Cash Flow as a Bridge “By showing them a simple analysis of three numbers and a corresponding bar chart” Copyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

38. Husband works in the family business

39. Concerns expressed in handwritten questionnaire:

40. Living within means

41. Plan for retirement

42. Plan for education

43. Would like help in understanding and creating optionsCopyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

45. Start a business

46. Retraining

47. Debt concerns

49. Buy a home

50. Relocate

51. Experience investment gain

52. Develop an estate plan

53. Increase charitable giving

55. Purchase a vacation home

56. CollegeCopyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

58. Current income

59. The “extras” that I can buy

60. The amount of money I save on a regular basis

61. My feelings about my money life

62. Financial issues don’t cause strain or stress in my relationshipsCopyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

65. Money won’t be there, live for todayCopyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

67. Sold house in Q.C., renting until things are more clear in the new community

68. Paid off both cars, $0 on credit cards

69. Cash Reserve established

70. Learned to manage cash flow, and then systematically fund mutually identified goals

71. Continually update First Step with changes in goals, income, and bills

72. Just about every goal has been addressed 1 ½ yrs laterCopyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

74. We used used cash flow as a tool to figure out what was real, and to understand how they make decisions

75. We used more traditional planning tools, such as Finametrica and Financeware, to create advice that was likely to help them reach their goalCopyright 2009 First Step Cash Management, LLC & Money Quotient, Inc.

76. Positive conversation Awareness Both spouses needs and wants Sense of freedom Focus is on goals ©2009 Money Quotient & First Step Cash Management, LLC. All Rights Reserved. 33 Why does cash flow fit LP?

78. Accurate and reliable numbers

79. Success of the financial plan©2009 Money Quotient & First Step Cash Management, LLC. All Rights Reserved. 34 What’s in it for the planner?

81. Savings transferred automatically

83. 36 Linking the Conversations The continual cycle of discovery, goal setting, implementation, and review. Life Conversations Financial Conversations Cash Flow Copyright 2009 First Step, LCC & Money Quotient, Inc.