What is Your Master Plan?

November 21, 2009 Leave a comment

"Sail boat" by Nuno Vasco Rodrigues @ Flickr

Without goals, our lives are like a ship without sails.  The winds of potential blow strong against our mast but with no sail to capture the energy we are left stationary, floating quietly with no command over the direction the waves push us.

Having goals allows us to hoist our sails high into the air and in an instant we are skipping across the surface of the water.  Our sails are filled with energy from the wind and our eyes are focused on the sliver of land that has just peaked out from the ocean blue.  Our destination comes into focus and as we arrive upon the shore we have learned a powerful lesson; if we create goals and harness our ambition & passion, we will realize our dreams.

If we are ships upon the sea with no focus or direction, what can we do to raise our sails and capture the wind?

Something I don’t spend much time discussing is the power of long-term goals.  My list of 100 Goals consists mostly of milestone accomplishments, things that once accomplished can be crossed off the list.  Crossing a goal off the list is a moment of satisfaction; knowing that I’ve done something great and meaningful in my life but once that goal is crossed off, it is done.  The moment has passed & I am looking forward to the next milestone that I can work towards accomplishing.

While I wouldn’t change any of the experiences I’ve had in using this method to accomplish my goals, the question that begs to be answered is this: “What happens when I have accomplished everything I want to do in my life?  What will I be left with?”

The answer is to have a Master Plan; a series of successive goals that will ultimately lead to what we envision our Perfect Life to be.  A Master Plan requires knowing where you want your life to be and figuring out a way to get there from where you are today.   It requires you to be proactive and take intentional steps in order to make your plan a reality.  It requires discipline, determination and flexibility.

Creating Your Master Plan

Too often we find ourselves ignoring our dreams of a Perfect Life because we tell ourselves that they are not grounded in reality.  Before we allow our desires to blossom into anything more than a passing thought, we stifle ourselves.  We are blocking our own success and happiness.  There will always be a reason why we “can’t” do something and now it is time to ignore those excuses and begin to create your Master Plan.

Close your eyes and envision your Perfect Life.  What do you see?  Are you working with panda bears in a sanctuary?  Are you backpacking the Appalachian Trail?  Maybe you are relaxing in your backyard drinking lemonade watching your children playing on the swing set.  No matter what you see, you have found your destination.  Now it is time to figure out how you will get there.

Usually at this point you would push your dreams aside with thoughts of “reality”, all the reasons why you are unable to pursue your dreams.  I want you to consider all of these excuses about why you can’t follow your dream but I need you to change your perspective.  Instead of using them as reasons why you can’t follow your dream, think of them as challenges to beat.  Don’t use them as an excuse any longer.  Use them as motivation.  Instead of feeling overwhelmed, find a way to overcome these challenges.  Your plan should be ambitious yet realistic.

The next phase in accomplishing your Master Plan is to figure out what steps you must take in order to position yourself to make your dream possible.  Will your Perfect Life require a career change?  Do you need to further your education? If your Perfect Life requires you to get a degree or certificate, enroll in classes, even if that means taking one class a semester for the time being.  If you need to change your career, start submitting resumes and begin networking with people who are in the field that you want to break into.  Prepare to Quit Your Job.

Ultimately, your Master Plan is about having a long-term goal to pursue while using short-term goals as a means for making progress towards your Perfect Life.  A Master Plan is not something that happens overnight.  My own Master Plan has been in the works for nearly 5 years, and I am only now really beginning to fully understand what it is that I want in my own life.  Progress is slow but steady and each day is a new opportunity.  Today is your opportunity to make a change in your life, an opportunity to start working towards your Perfect Life.  No more excuses, no more hesitation.  Today is the first day of the rest of your life.  You decide what that means for you.

Filed under Behavior, Career, Education, Employment, Goals, Motivation, Passion, Potential, Preparation, Success

Does Being Frugal Put You at Risk for Fraud?

June 7, 2009 Leave a comment

"The Chic Detective" by rockymountainroz @ FlickrI love to take photos.  When I travel I have my camera on the ready at every moment.  By the time we return home I usually have thousands of photos to sort through.  Despite my passion for photography, the equipment I use is very basic.  My digital camera is more appropriate for taking snapshots at a family reunion than for composing photos of any artistic value.  I also have a Nikon 35mm film camera with interchangeable lenses.  I love to play around with this camera however I miss the ability to review the photos immediately after taking them like I can with my digital camera.

While on our recent trip to the Southwest the screen on my digital camera began to show signs of trouble.  At first there were a couple of dead pixels but soon the trouble began to spread across the screen.  By the time the spreading had stopped I was left with what appeared to be a lunar eclipse in the middle of my LCD screen.  This made taking nice vacation photos next to impossible.

It was obvious that I would need to replace my camera so when I returned home I went to Best Buy to check out what they had to offer.  Instead of replacing my camera with another low end camera I decided to look into buying a digital SLR Nikon which would be compatible with the lenses I already owned for my film camera.  After checking out the available models I learned that while the lenses I owned would work on these camera bodies, the auto-focus feature would not function.  I was greatly disappointed by this news as lenses are very expensive.

I began looking online for the camera which I was interested in purchasing to see if I could find it at a lower price.  (For those interested, I am considering a Nikon D5000).  I soon found a website offering the exact same camera with 2 lenses for approximately half of the price as what Best Buy was asking.  I decided to call Best Buy to see if they would offer a price match with online competitors but was informed that they only compete with other local retailers.

This left me with the dilemma of purchasing the camera through an online retailer with whom I’d never done business.  I would also be making a purchase of an item sight unseen.  I’ve ordered plenty of things online without much of a problem so I am pretty confident in making online purchases, but for some reason this website made me question something.  I decided to give the customer service phone number a call.  It was too late in the afternoon so there was no one available to answer my questions.

I contemplated making the purchase again as the price was amazing and I didn’t want to miss out on such a good deal.  Besides, if I were able to get a great camera at half the price wouldn’t that be the smart, frugal decision to make?  There was still a strange feeling lingering so I did a quick Google search of the company and was rewarded with a long list of customer complaints.  I learned that this particular website was a bait & switch company, which means that they advertise a great price on a high end item, then try to get you to take a lower quality item after making the purchase, saying your item is no longer in stock.

I am fortunate that this wasn’t a lesson I had to learn the hard way.  I was saved a lot of heartache and stress by making a quick search on Google.  It makes me wonder if being frugal puts me at a greater risk of being a victim of fraud.  Being frugal generally requires making informed decisions about purchases.  Frugality tends to lead us down the path of searching for the best deals possible, which may eventually direct us into the hands of predators.  Those predators are using low prices as enticement for bargain shoppers to initiate a transaction with them.  In the case of the website mentioned above, once they had your credit card information they attempt to sell an inferior product, most likely a cheap knock off version.  This puts us at risk for credit card fraud as well as simply being ripped off.

The lesson to take away from all of this is not new information, but something we’ve all heard throughout our lives; “If it is too good to be true, it probably is.”  Frugality isn’t always about finding the lowest price.  It is about finding the best deal.  When you put yourself at risk for fraud, you may end up wasting your money.  That is not a very frugal decision.

I will continue searching for a better price, but in the process I will ensure that I am protecting myself against companies which are trying to scam me and take my hard earned money through dishonest practices.  I encourage you to take the same precautions when you are making important purchases.

Filed under Frugality, Money, Preparation, Spending

Closing a Credit Card Account

February 19, 2009 1 Comment

"MSH Credit Crunch 01/09" by Lightning Bug Creek @ FlickrAs I approach completion of my goal of eliminating my credit card debt, I am faced with the dilemna of what I should do with the account once it is paid off.  Do I keep the account open or would it be better to cancel my card and close the account entirely?

Keeping the Account Open:

What are the benefits of keeping the credit card account open?  The first thing that comes to mind is the access to a line of credit in case of an emergency.  A credit card is not a substitute for an emergency fund, but in the early stages of saving, a credit card may be your only life line if something unexpected happens.  Something unexpected is not a cashmere sweater marked down 50% either.

Another benefit to keeping the card open is that the credit card companies will continue to report to the credit bureaus.  For someone who is trying to build or repair their credit, it may be in their best interest to keep the account active so that you are getting a positive report to the credit bureaus.

Keeping a credit card account active also has its drawbacks.  Having access to the credit line can be a good thing in the case of emergencies, but also a very bad thing if you don’t have the willpower to resist impulsive behavior.  Do you have the ability to walk through your favorite clothing store during a huge sale with countless great deals and not whip out the plastic?

Closing the Account:

Closing the account also has its positives as well as negatives.  If the account is closed there is no temptation to use the card because you won’t be able to.  I consider this to be a good thing, especially if you are trying to get out of debt.  You can’t spend the money, but you also don’t have that life line in case of an emergency.

Besides not being able to use the card anymore, closing the account will provide satisfaction in knowing that the debt is gone for good.  No more worries hanging over your head.  No more statements in the mail that you are afraid to open.

Closing your account may also negatively impact your credit score in 2 ways.  First, by closing the account you are reducing the amount of credit which is available to you.  That’s good, right?  Wrong.  By reducing your available credit you are increasing your debt utilization ratio.  For example, you have $10,000 in available credit on 2 cards.  Let’s say both cards have a limit of $5,000.  One has a balance of zero while the other is maxed out.  At this point your debt utilization ratio is 50%.  If you were to close your account with a zero balance, your debt utilization ratio would jump to 100%.  Ouch!

The second way that closing an account hurts your credit score is if you have had the account for a while, closing that account will affect your length of credit history.  The longer you have a card the more important that account becomes to your credit score.  When closing accounts, it is important to consider how long you have had that account.

Conclusion:

After careful consideration of what is best for my current situation, I am deciding to continue to keep the account open for 2 main reasons.  The first is for emergencies.  While I work to build up my emergency fund, having the line of credit to fall back on in case of a serious situation provides a small amount of security.  I do not recommend that anyone use a credit card as an emergency fund, but when you are beginning to change directions from being in debt to beginning to save, I think it is important to have access to some sort of money, even if it is a credit card.  My second goal is to build my emergency fund to $5,000 and once I have completed that goal I will re-evaluate whether or not I should close the credit card account.  By that time I may feel as though I no longer need to keep the account open.

The second reason why I want to keep the account open is so that the credit card company will continue to report to the credit bureaus.  When I went into debt and hit rock bottom, I trashed my credit score.  I have been working hard at bringing that number back up.  I have closed all of my other credit card accounts for various reasons, including my oldest accounts which likely had a negative impact on my score.  For a while, it may be best to keep this account open in order to establish a positive credit history.  There are no fees for this card, so as long as I don’t use it I won’t be charged any fees.  On the other hand, if I don’t use it, the credit card company may close the account.  I guess I’ll never beat the credit card companies!

Filed under Credit Cards, Debt, Preparation

Preparing for a Layoff

February 16, 2009 Leave a comment

"Sunrise Paddling on the North Canadian River" by FreeWine @ FlickrI recently wrote an article about what you can do to prepare yourself financially in the event of a layoff.  I’d like to continue that conversation about what you can do personally and professionally to avoid the possibility of losing your position and what you can do if you do get the axe.

Polish Your Resume- If you don’t have a resume, now would be a great time to get started on one.  I like to look over mine every few months in order to update and add information.  Look it over again, as it is possible that you may have made a mistake somewhere, or your choice of wording may be weak.  The last time I updated my resume, I kept asking myself, “What was I thinking!?” and spent 6 hours completely revamping it.

Take college courses- Taking college courses is a good way to brush up your skills and open your mind to new possibilities.  There are classes for public speaking, mathematics, courses for people with basic to advanced computer skills and courses to fit practically any interest.  I highly recommend getting involved in education.  Not only will it help you in your career, but also in your personal life as well.

Begin Your Job Search Early- If you expect or know that you will be losing your job, start looking for work as early as possible.  The more time you allow yourself to look for work, the less pressured you will feel in taking a job that isn’t right for you.  You may even find a better job than the one you have now.  Sometimes we only stay at a job because we have become comfortable and secure in our positions.  We neglect to consider that there are better opportunities available, we just need to look for them.  Finding a suitable job at present will take more time and will be more difficult to come by.  The competition will be fierce.  You will need as much time as possible, so start early.

Make Yourself Irreplaceable- The reality is that we are all disposable, but that doesn’t mean you should behave that way.  Show your boss that you are a key player in your companies success.  Take on extra assignments, work in developing a new product line, whatever you need to do in order to show that you are there to do your job and do it well.  Companies love team players.  Why?  They make money.  On the other hand, don’t be the person who complains often and/or loudly.  Offering constructive criticism is okay, though it would be better that you offer a solution to complement your concerns.  Your managers and supervisors have enough to worry about without someone complaining.  Give them a break, and a hand.

Make friends- Networking is a great way to open doors to opportunity.  Just knowing “so and so” is sometimes all it takes to get your foot in the door.  The more people you know, the better off you are.  Get out there and meet people!  Even if some of the people don’t directly lead to job opportunities, meeting new people and making new friends is a great way to improve your social life.  In times like these, sometimes all you can really count on are your friends, and the more you have, the better!

What suggestions do you have for preparing for a layoff or for preparing to change jobs or careers?

Filed under Preparation

Newer posts →

Follow

Get every new post delivered to your Inbox.

Join 242 other followers