The Thrill of the Chase?
 
When you are in pursuit of a goal, are you engaged or stressed?  How you answer that question will say a lot about how much you enjoy your life and how you will rate your overall happiness.
 
When you actively and consistently set goals, whether they are financial in nature or otherwise, there is no doubt that your increased awareness will also increase the number of things for you to think about and potentially worry about.  The additional worry often times will lead you to look forward to the end of the pursuit, or the achievement of your goal.  There is nothing wrong with this, unless that anticipation completely overshadows the value of the process itself or what is sometimes referred to as “the thrill of the chase.”
 
If you are an accomplished goal setter, you already understand the importance of goals and the vital role they play in the forward progress of your life and the realization of your ambitions.  If you know how to set goals and why they are important, you will likely achieve your goals as well.  Having an understanding of the importance of goals and their role in the quality of your life, however, does not directly translate into an appreciation for the pursuit of those goals.
 
If you are someone who is constantly and solely focused on the end result, you may be devaluing an equally important part of the process, which is the pursuit of that result and the corresponding journey you will take to get there.
 
Results are great, but the majority of your learning and the experiences that you gain in your lifetime actually take place along the path that you travel as you move toward those results.  In fact, most of your life is spent in the pursuit stage of your goals and dreams, not in the actual end result of those pursuits.
 
If you find yourself wishing that your work day was over, is it possible that you will miss out on a positive experience or a learning opportunity because you are not engaged in the moment?  If you are worried about the outcome of an event or process, might you be less effective in influencing that outcome because you are not focused on the present?
 
As great as it is to reach a successful conclusion, much of the joy to be derived from reaching that conclusion is in the work and the effort that you put forth to reach it.  Without the value that you derive from the work that you do, your results (even if they are successful ones) will be hollow and not as meaningful to you or your development as a person.
 
Let’s use my golf game as an example.  I am not a good golfer, but I do take the game seriously and I am just as competitive on the golf course as I am everywhere else.  I am generally aware of my strengths and weaknesses on the course and what my ability will allow me to do or not do.
 
Knowing these things also helps me to distinguish between a lucky shot and a skillful shot.  Each may end up in the same result on the scorecard, but I can tell you that I always feel better about the shot that I meant to hit and practiced hitting than I do about the lucky shot that happened to end up in the right place.
 
On the rare occasion that I achieve the result I was looking for, I am aware of the work that I did to get there and the execution that was needed on my part to achieve it.  It is a result that I can build upon because I know what I did and why I did it.  A lucky shot doesn’t tell me anything other than I may be just as unlucky on my next shot as I was lucky on this one.
 
Everyone needs something to look forward to, whether it is the purchase you can finally make after saving your money or the retirement you will be able to thoroughly enjoy after a lifetime of hard work.  A little dash of luck and good fortune is always a welcome assist in getting you to where you would like to be, but if you don’t enjoy the process that takes you there, you will miss out on an awful lot of life’s experiences and lessons.
 
If your first thought upon arriving at work every day is that you are another day closer to retirement, you will diminish the value of the work that you do.  While there is nothing wrong with thinking about your ultimate goal of not having to work one day, the work that you do today should be important enough to you to focus on the present; for you to learn as much as possible and for you to have as much positive influence on the course of your life and on those around you as you can.
 
From a financial perspective, you certainly want to properly prepare for your retirement by saving and investing what you will need to enjoy your life when you are no longer earning a paycheck.
 
If you don’t pay any attention to what your financial needs will be when you retire, you are either not going to be able to retire or your retirement will be vastly different than what you hoped it would be.  Conversely, if you spend every day thinking about how much you have to save for the future, you may have plenty of money when you stop working, but you will miss the fun of the present.  You will likely deprive yourself from enjoying the money that you make while you are working because you are solely focused on the future.
 
If, however, you fully appreciate the work that you are doing and the progress that you are making toward the achievement of all of your financial goals, you will be much more likely to find that balance between preparing for the future and enjoying today.
 
If you can constantly learn from your past and keep an eye on your future, while making sure that you live in the moment; you’ll be right where you need to be most of the time.

This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.

Define Your Financial Legacy
The sooner you form goals, the better chance you will have in securing your legacy

​Dealing with your own mortality can be difficult and overwhelming.  So much so, that often times you may choose not to think about it at all.  You may put off, or ignore altogether, your responsibilities to your loved ones because you are either beleaguered by the subject or you simply do not know where to start.  In so doing, you run the risk of diluting your legacy and failing to preserve many of the things that you have worked so hard to achieve.
 
Financially speaking, most of your focus is probably on the here and now.  You concentrate on paying your bills, earning enough money to support your family, and setting aside some money for retirement.  A big part of your overall financial responsibility, however, is to ensure that you do not leave unanswered questions and undesired consequences for your family and friends.  Your focus on the present will mean a lot less if you do not complete the picture by planning for the future.
 
This is a huge topic that requires a lot of consideration across a variety of matters, most of which are complex enough to warrant the attention of an attorney, a CPA, and/or a financial advisor.  Developing a will and a detailed estate plan involves multiple steps and careful thought and these actions are absolutely necessary if you want to ensure that your intentions are clear and your wishes are protected.
 
For our purposes, we are going to concentrate solely on the financial aspect of this planning and some simple guidelines that will assist you in making some decisions that are key components in securing and strengthening your financial legacy.
 
The first step in this process is to define your goals.  It is impossible to accomplish anything without first defining what you want to achieve.  Your financial goals are exactly that, yours.  By definition, your goals are going to be personal to you.  To properly set these goals, you will need to ensure that you have considered all aspects of your personal financial situation, developed realistic expectations, and set your top priorities.
 
Timing, as always, is key.  You may fool yourself into thinking that you should put this process off until you have had a chance to get better established, to make more money, or to accumulate more assets.  You will certainly need to adjust some of your planning as you acquire more wealth, but there is no time like the present to begin to define your goals and create your vision for your financial legacy.  It may even be easier for you to set goals early on because you know that you have your career and your whole life ahead of you.
 
Whether or not it is mentally or emotionally easier for you to start early, the sooner you form goals and work toward them, the better chance you will have in achieving those goals and securing your legacy.
 
The main questions that you will want to address involve what you intend to spend or distribute and what you want to leave for your family.  It is up to you to make sure that your planning reflects your thoughts and that your decisions are consistent with your intentions.

Once your goals are set, your next step is to develop a plan that will help you meet those goals.  Goals are worthless to you if you do not put a plan in place that starts you and keeps you on a path toward achieving them.  Again, your plan is going to be personal to you.  Seeking advice from friends and trusted advisors will always help you gain perspective and a better understanding of the choices you are contemplating, just keep in mind that what works for your neighbor or co-worker will not necessarily work for you.
 
Your goals and the plan you create may require you to set more or less money aside.  You may have a larger or a smaller family than the person from whom you are seeking advice.  You may have a substantial amount of debt or no debt at all.  Your job is to consider all of these aspects, gain perspective, and then plan accordingly.
 
Your plan should include both short term and long term measurements that will serve as your checkpoints along the way.  Progress toward your legacy goals may be slow at first, but you will have a much better idea of where you are if you clearly define targets that are representative of your individual situation. 
 
Meaningful measurements will include a savings target, set in real dollars or as a percentage of your earnings, for each year going forward.  Most of you will earn more in later years than you do early on in our career, so factor that into your target.  You will want to make sure that you save enough to meet your long-term goals, but that you do not unnecessarily deprive yourself in the short term.
 
You should also set some sort of spending limit or budget that will help you control your costs and balance your daily decision-making.  Even if you do not intend on leaving any assets for your loved ones, you will want to make sure that you do not spend beyond your means.  If you do not do an adequate job of managing your finances, some of your liabilities may unintentionally transfer to your estate and unfairly burden your family.
 
If your legacy goals include assets to be left to loved ones, you should consider acquiring or adjusting assets or investments that are designed more for the future, such as insurance policies and IRA’s.  Even within these options, there are many different choices and some are going to be much better suited for you than others.
 
If you are managing your finances in a sound and responsible way, you will make it a point review your budget and measure your progress at least once a year.  Effective legacy planning, however, may only require that you examine your progress every five years.  A plan that calls for you to stay on top of your current financial situation with an eye toward the future will help keep your decisions in balance.  The more that you do on the front end of this planning to set strong goals and implement a plan that will keep you on track, the less you will have to do as you get older.
 
With your goals in mind and your plan in place, your next step is perhaps the most important one of all.  Communicate!  Make it a point to let everyone who is part of your plan know what your intentions are and what you expect from them.  If you are counting on a relative to carry out some or all of your wishes, they deserve to know about that up front.  
 
Talking to your family about life after you are gone is not easy and no one looks forward to those conversations, but the discussion is absolutely necessary if you want to ensure that your thoughts are understood and clear to everyone involved.
 
Not having this discussion or discussions isn’t a viable alternative because it leaves too much to chance.  No contract or estate plan can entirely capture what is in your heart or what your motives are for the decisions that you are making.  No amount of written detail can replace a face-to-face talk.  Your written plans do not provide an opportunity for your loved ones to ask you questions or to seek clarification, no matter how well thought out or detailed they are.
 
Your financial legacy is not created until after you are gone, but the only way to ensure it is an effective representation of you is for you to take these steps and make these decisions while you are here.
 
Once you have set your goals, created your plan, and talked about your intentions and wishes with those who are impacted by them, the only thing left to do is rest easy.  Enjoy the peace of mind that only arrives once you have tackled a difficult, but necessary subject and taken the steps that you needed to take to ensure that your financial legacy is one hundred percent consistent with who you are and what you worked hard to achieve.

This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.

My List of Lists

And now for something really original…a list of lists!  Just when you thought you had seen or heard of every list imaginable and received every bit of advice you could from lists and the people who construct them, I’ve got one more for you.
 
I am a big believer in lists.  I use them as memory tools, especially as I get older.  I use them to help keep me organized.  I use them to keep my priorities straight.
 
I thought it might be fun to list my favorites.  You get to decide if it was fun to read through them.  Here are my top ten in no particular order.
 
To Do List
This is arguably the best-known list of all time and for good reason.  I prefer to construct one daily.  For really busy days, I will draw one up the night before so that I give myself a chance to sleep a little better knowing that I at least have a handle on what I need to do when I wake up.  
 
The value of a to do list is virtually limitless because you can apply it to your work or at home.  It can be as detailed as you like or just cover the highlights.  Besides the more obvious benefits, such as the organization and structure that a well written to do list can add to your day, it can assist you in other ways as well.
 
I always feel a sense of accomplishment when I complete something on my to do list and, as I am fond of saying, there are few joys greater in life than crossing something off of your to do list.
 
Yet To Do List
This is more commonly known as a bucket list, but I think that sounds kind of morbid and I try not to be a cliché guy.
 
This is a broader list and probably one that you do not add to or delete from very often.  I love this list because it often forms the basis for happy thoughts and grand dreams. I like to remind myself that there are always sights to see, people to meet, and new things to experience, and this list is a great reminder of those things.
 
Grocery List
Believe it or not, I enjoy grocery shopping.  I generally do the grocery shopping for our family and this list helps me to be efficient and, to a certain extent, contain cost.
 
When I shop for our family, I try to do so once a week.  That means the pressure is on for me to remember everything for all meals for the next several days.  My enjoyment would evaporate quickly if I was stressed about the task. My grocery list keeps me on point, so I remember what we need, and I am not as tempted to stray from the list and buy a bunch of things we don’t need.
 
If you are not a big grocery shopper, then you can adapt this list for your own shopping habits.  Maybe you are a big do-it-yourself weekend warrior and you spend a lot of time at your local hardware store.  If so, a list like this is going to come in handy.
 
If you’ve read this far, you might be thinking that my list of lists is pretty mundane.  Please keep reading.
 
List of Accomplishments
In my mind, I invented this list. 
 
In my desk drawer, I keep a list of the ten things that I have done in my life of which I am most proud.  This is not an ego thing.  It is a source of inspiration for me on a tough day.  It is a great reminder that I have had some wonderful experiences and I need that reminder the most when I have a day when I feel as though I don’t know anything, and I am not doing anything right.
 
This list helps to keep me focused on the things that are most important and determined to move forward with the intent of adding accomplishments to my list.
 
Daily Reflection List
I replay every day at the end of that day.  Good or bad, work day or vacation day, I take a few moments and reflect on what the day entailed and my role in it.  
 
My reflections involve a lot of questions, such as what did I learn and whether I found something to laugh about?  The exercise is meant to help me make sure that I got the most out of that day and to help me continue to move forward with purpose so that I extract as much as I can from the next day as well.
 
If you ever feel that your daily demands take you away from what matters most to you in life, this is a great checkpoint.  If your reflection isn’t heavy on the amount of time you spent on things that you enjoy and that help you achieve fulfillment, you have a chance to think about why and then set out to get a little closer to those things tomorrow.
 
Assets and Liabilities List
About once every three months, I draw up a list of assets and liabilities.  If you are not in the practice of doing this, I highly recommend that you start.
 
Financial health is a vital component of your overall peace of mind and a big part of your financial health is derived from how engaged you are in the management of your personal finances.  If you have a solid understanding of what you have accumulated (your assets) and what you owe (your liabilities), you have taken the most important step toward making informed decisions about your finances.
 
Financial health is not exclusively a derivative of wealth.  It is, more importantly, a derivative of your own understanding of what you have, what you owe, and what you are going to do increase what you have and decrease what you owe.
 
Discussion Points
This is the only list on my list that does not include the word list in the title, but it is nevertheless a list.  I use this list when I am going to make a speech, organize a soccer practice, or even if I want to have a conversation starter in my pocket when I am about to meet someone for the first time.
 
Over time, I have found that I do not need to write down every word of a speech before I make it to deliver it effectively.  I just need to make sure that I have some organization to my thoughts and that I don’t forget the key topics, and this is where the use of discussion points is helpful.  Similarly, I don’t want to be on the soccer field trying to come up with the next drill on the spot while a dozen 12-year old girls are screaming at me.  I have gotten a lot of use out of jotting down a short list of drills and games before each practice, so I have a reference point as we go.
 
For meetings, it is always helpful to have an outline of the main points I hope to cover, especially if I am meeting someone or a group of people for the first time and I am not sure how it will go or what to expect.
 
So far, I’ve gone heavy on the types of lists that help me to stay organized or otherwise on track.  Let’s finish with a few that are a little more fun.
 
Top 5 Favorites List
You can insert any number here, there is nothing magic about five. It also doesn’t have to be about your favorites.  You can substitute words like Greatest instead.
 
I include this list and use the number five because I have developed this one in response to questions from my kids over the years.  As they have grown up they have asked me about my times and experiences and often want to know, what my favorite (moment, trip, dinner, etc.) has been.  I usually struggle to narrow the answer to one favorite, so I have gotten into the habit of giving them my top five.
 
A list like this is also a good way to start an impromptu conversation with co-workers and friends.  What are your top five favorite movies, books, songs, or television shows?  These questions can lead to a fun discussion and help you to get to know people a little better.
 
Desert Island/Dinner Party List
These are actually two different lists that serve roughly the same purpose.  The desert island list involves the few things that would be essential to you if you were stranded on a deserted island.  You can decide how to limit the number of items and what is not allowed.
 
The dinner party list is the six people (alive or dead) that you have not met and would invite to a dinner party if you had the chance.  I used to ask this question during interviews thinking that it would be a good way to ask a question that the interviewee had not anticipated and to gain insight into that person’s values and heroes.
 
Whether you make these lists for yourself or you are asking others what would be on their list, it can be fun to talk about these topics and you may learn something from your answers or from the answers of your friends and colleagues.
 
Christmas List
I am going to finish strong here and go with the old standby.  Feel free to insert any holiday at the front of the list.  The point is that it is your wish list for whatever occasion you want to apply it to. 
 
Just remember to also make the list of the wishes you hope to fulfill for others, the gifts and experiences that you will give and share.
 
There you go.  I hope that you enjoyed reading the lists as much as I enjoyed writing about them, but I’ve got to go.  Now that I have written this article, I must make a new list of ideas for possible future articles.

This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.

​Seven Don’ts of Leadership
You cannot lead if you are not willing to be the first one through the door. 

​Normally, I focus on what I am doing or should be doing as a way of re-enforcing my focus on what I can control, but I have also found that being aware of what I am not doing also plays an important role in helping me to determine how I should be spending my time.
 
It is with this thought in mind that I would like to share the seven things you should absolutely never do as a leader, regardless of who you are leading or what business you are in. 
 
Don’t Allow Yourself to be Overwhelmed
 
You can never let the moment, or the situation get too big for you to handle.  The second that you do, everyone who is relying on you will also be overwhelmed.  Plus, it sends a signal to your boss that you are not ready for additional challenges or opportunities, which will likely put the kibosh on your upward mobility.
 
It is normal to have doubts, to not immediately have all the answers that are required to solve a problem or craft a solution.  Understanding the importance of a matter and that you rarely know everything you need to know at the exact moment you need to know it will help you to move forward.  Arrogance and ignorance are the two largest impediments to forward progress and long-term success so knowing what you know and admitting that there is always more for you to learn and experience will keep you grounded in reality and help you remain intellectually curious.
 
What you cannot do is allow those internal doubts to become external expressions.  Take a deep breath, give yourself a moment (or several) to collect yourself, and find a way to rise up and meet the challenge you are facing.  You have a skill set that has helped you get to the position you now hold.  Rely on those skills and give your instincts and the experience you’ve gained time to kick in and lead the way.
 
Don’t Wait
 
As a leader, if you ever find that you are about to start a sentence with the words,” I’m waiting for…”, stop.  If you wait, everyone else on your team waits too and if everyone is waiting, nothing is getting done.
 
Your daily routine should largely consist of these three steps; identifying needs, finding solutions to meet those needs, and measuring the success of those solutions.  If you are regularly doing those three things, you are going to be busy and you will not have time to wait.
 
As a leader, you will ultimately be measured on your results and you will never achieve results by waiting.  If you find yourself having taken action that is reliant on someone else responding, don’t simply wait for that response.  Find something constructive to do in the interim.
 
Don’t Dance Around
 
Be direct and forthright with everyone and in every situation.  You can do so while maintaining a proper level of tact and diplomacy, but you will never convey a message efficiently by dancing around the subject and using more words than are necessary or innuendos or indirect references that may or may not be understood.
 
Further, when you choose to dance around a subject, you will come across as being uncertain and less committed to your message.  Especially in difficult situations and with delicate subjects, do yourself and the person or people you are addressing a favor and get to the point.  There is no better way to demonstrate your respect for someone than to be respectful of their time and to treat them with the courtesy of a straight forward discussion.
 
This concept applies to meetings as well.  If you put together a meeting, have a point, state that point, and discuss whatever details support that point.  After applicable discussion, provide an efficient summary and adjourn the meeting.  No other steps are required, especially those that involve a platform for you or any other participant to talk for the sole purpose of talking.
 
Don’t Mumble
 
While you are having those discussions and conducting those meetings, speak clearly and concisely.  A lack of clarity will always lead to inefficiency, confusion, and misguided effort and if you are running a busy business or department, you simply do not have the time to waste.
 
Take the time that is necessary to deliver a message that is easily understood and simple to follow and leave as little as possible to chance.  It is okay, even advisable, to repeat or summarize key points or expected action steps if that strengthens the message and supports the intended result.
 
Over-talking also detracts from the strength of your message and constitutes a form of mumbling in this example.  If your point is made, move on without hesitation.  If you are going to tell a story, pause to make sure that it will be productive and central to your message rather than distracting and a dilution of your message.
 
Don’t Over/Under React
 
Clearly, effective communication is crucial to strong leadership.  A huge part of that effective communication is the flow of information and discussion amongst you and your team.  The best way to promote the efficient flow and discussion of pertinent information is to act and react in kind and in a manner, that is consistent with what is called for by the situation at hand.
 
If you consistently initiate or respond to the flow of information in a manner that equals what is called for by the situation or event, your people will be much more likely to willingly participate in the flow of that information.  It is okay to be emotional, if you are an emotional person and it is equally okay to be stoic, if that trait comes easier to you.  Be yourself, for sure, but take the requisite action and manage it accordingly.
 
If, on the other hand, you either fly off the handle or take no action at all regardless of the circumstance, your people will not be so inclined to include you in their problem solving and once you are out of that very important loop, you are a far less effective leader.
 
Don’t Stop Evolving
 
I’m on the fence as to whether I think people can change who they are, but I am a hundred percent certain that the second you stop evolving is the second you need to get out of the way and let someone else take the lead.
 
If you are unwilling to learn new things, to apply your experiences in new ways, to take on new challenges, how in the world could you ever expect your employees to do those things?  Take that question one step further and ask yourself what would your organization, or any organization, look like if it stopped all forward progress?
 
You cannot lead if you are not willing to be the first one through the door.  When you are willing to evolve as a person and a leader, you are open to new ideas and fresh approaches and your options and possibilities grow. 
 
Don’t Ever Miss a Performance Review
 
The best thing you can ever do for your employees is to let them know exactly where they stand.  Conversely, the worst thing you can do is to miss an opportunity to do so.  Failing to perform a performance review when one is due or even failing to complete one on time is the worst injustice you can commit as a leader.
 
As a leader, you are often only as good as your employees allow you to be.  You invest your time and energy and experience into them so that, in turn, they unlock their potential and perform at the highest possible levels.  In this way, it is a mutually beneficial relationship.  When you don’t provide your employees with timely and specific feedback both as events occur and while administering a performance review, you deprive of them of valuable information and developmental tools they will need to advance.  In most instances, if you’re employees are not advancing, then you aren’t either.
 
Providing your employees with frequent and meaningful feedback creates another big plus.  It greatly reduces the possibility of having to confront your employees for prolonged poor job performance or for there to be any confusion regarding your expectations of them.  When you address matters as they arise, and you create an environment that is conducive to productive performance reviews, the likelihood that you spend any time not on the same page with your employees is significantly limited.
 
So, those are seven don’ts and I hope you find them helpful.  Here are two to-dos’ while you’re thinking about the things not to do.  Listen and be available.  Your employees will appreciate the access and you will be instantly the wiser for placing these to-dos on the top of your leadership priority list.
 
This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.

From The Serial Decision Maker On Goals:

Results are great, but the majority of your learning and the experiences that you gain in your lifetime actually take place along the path that you travel as you move toward those results.  In fact, most of your life is spent in the pursuit stage of your goals and dreams, not in the actual end result of those pursuits.

Decision Points are part of Scott Arney's online educational series,  The Serial Decision Maker.

What’s Your Passion?
 
Is it just me or does it seem like you cannot go one day without hearing someone talk about how passionate they are about something?  I think passion is one of the most overused and misapplied descriptions in today’s conversation and when I hear it invoked all of my alarm bells immediately sound.
 
First, let’s establish that passion is essentially defined as an intense, driving, or overpowering feeling or conviction as well as an ardent affection or deep devotion to some activity, object, or concept. 
 
Using this as the definition of passion, the question that has to be asked is just how many things can you be passionate about?  How many subjects can legitimately create such an overwhelming urge to act on your part?  How many different pursuits are capable of stirring your internal call to action and moving you on a regular basis?
 
If you have somehow made yourself believe that you are passionate about more than a couple of things in your life, than you are overusing the term and if you find yourself declaring your passion for cleaning your house or utilizing good manners, than you are most certainly misapplying the description.
 
Now that I’ve called out those who overuse the expression of passion, how about those that are not passionate about anything or at least fail to demonstrate it at times that it should be evident?  You may know the personality type or have recently witnessed an example.  This would be the person who will “cold fish” you on a handshake or the ballplayer who jogs to first base on a ground ball in play.
 
Like so many things in life, a little balance goes a long way.  If you walk around telling everyone how passionate you are about things, you are probably not going to garner much credibility.  On the other hand, if your actions are such that whatever passion you may possess is nowhere to be found, the people around you will not rush to join your team.
 
The key is to discover the few things that you have passion for and then pursue those things with everything you’ve got.  If you have yet to identify those things, don’t worry.  You can discover just as much joy in your pursuit of that discovery.  Along those lines, let’s identify what needs to be present for a real passion to develop besides the descriptive words in the definition above.
 
Passion is not judgmental or temperamental.  If you think of passion as your feelings for your spouse or significant other, your passion for that person must encompass everything about that person, especially if you are going to make a lasting commitment.
 
I look at it like this.  If you are truly passionate about someone, you love that person in spite of who they are.  True and lasting love is not based on what someone does for you or how they make you feel.  Those are moving targets and they are subject to change on a regular basis.  Real passion exists when you know someone well enough to accept them for everything they are, flaws and all.  When you understand and accept the worst of someone and you love them anyway, you have the truest form of true love!
 
Passion does not take a day off.  If you are truly passionate about your work or your career, you are willing to accept the bad days with the good days.  You may even produce more or do better work when times are tough because your job means that much to you.
 
Passion does not have a deadline and is not subject to the clock.  If you are working on something that is a matter of personal importance, your thoughts and actions are not dominated by what time of the day or night it happens to be.
 
Passion is a great prioritizer and motivator.  I have daily tasks that I need to complete and I am sure you do as well.  Some of those tasks are pretty mundane.  As wonderful as it would be to be involved in a pursuit of passion all day, it is not realistic.  If passion exists in your heart, however, it will also influence your mind and guide you back to the source of that passion.  When this occurs, you will inevitably work your way toward that source of passion.  You may complete those mundane tasks a little faster to do so.
 
Passion creates purpose and meaning.  When you discover something to be passionate about it can help you decide not only how you should be spending your time, but it can influence the direction you head toward and the goals that you set along the way.
 
Passion expands exponentially.  When you have it, you want more of it and you will be more likely to create opportunities for it to develop and more alert to moments that will lend itself to it.  A hug can turn into a HUG and that project that you were signed can turn into a PROJECT!
 
Passion and the pursuit of it are an absolute must.  There is no joy in a life spent without it or deliberately avoiding it.  If you have it, cherish it and do everything you can to nurture it.  If you don’t have it, find it and then hold on tight!
 
​This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.

Are You Credit Wise?

If you are like most people, you have only a vague understanding of how credit is granted, obtained, recorded, and maintained.  In fact, even if you have vast knowledge of the financial industry, you know that our credit system is not, in any way, based on an exact science.  Our credit system and the related tracking of it is based largely on the subjectivity of individual decision making, variable credit scoring formulas, and the further variability of changing objectives amongst the financial institutions granting the credit.
 
So, whether or not you are credit wise, there is always more information to gather and insight to gain.  Here are three things you can do to increase your credit knowledge:
 
1.Clarify any misconceptions
2.Establish what you know and what you don’t know
3.Identify steps that you can take to improve your financial standing
 
Once you have completed these steps, you will immediately start to see more money in your pocket and in your accounts in the form of lower monthly payments, better cash flow, and lower borrowing rates.  I guarantee it!
 
Clarify Misconceptions

There are all kinds of misconceptions regarding credit and there are many opportunities for them to flourish given the overall lack of credit knowledge that exists relative to the complexity of the system.  I have included five of the more common misconceptions below.
 
I am better off not knowing my financial status.

Don’t be a credit ostrich and bury your head in the sand.  While ostriches don’t actually bury their head in the sand, they do duck their head low to the ground when they sense danger in the hope that their problem will go away.  This describes the credit strategy of many, many individuals.  When you ignore or otherwise choose not to know or understand the state of your finances, it costs you money.  You will pay NSF fees because you don’t know how much money you have in your checking account.  You will pay late fees because you don’t pay attention to the due date on your bills.  Ultimately, your financial standing will suffer.
 
My credit score does not matter.

Yes, credit scoring is an imperfect, somewhat confusing system, but if you want to buy a house, finance the purchase of a car, obtain a credit card or complete virtually any other type of credit transaction, the first thing any financial institution will do upon receiving your request is run your credit report.  Some will take the time to understand all the issues and perhaps even get to know you a little bit better in order to weigh all the factors, but most lenders will flat out reject credit requests of any kind from a person with impaired credit, regardless of any extenuating circumstances.  A poor credit score can actually prevent you from buying a house or financing a car.  Perhaps worse yet, today’s lending environment will still allow some individuals with poor credit scores to purchase a home or finance an automobile purchase, but force them to pay dearly for the privilege.  This so-called “predatory” lending practice clearly perpetuates bad habits and can make tenuous financial situations even more prone to deterioration due to extraordinarily high interest rates and the associated monthly loan payments.
 
I always pay my bills = My credit is great.

Regularly paying your bills on time is a great start, but people are often surprised to find that their ability to obtain credit is impaired even when they have a strong payment record.  Several factors other than your timeliness can add or subtract from your credit standing, including the amount of debt that you carry relative to your income, the frequency with which your credit report is run, and the amount of existing credit you already do or don’t have.
 
I thought it was acceptable as long as I paid the fee.

Many people are under the mistaken belief that if they pay an NSF fee, for instance, it is okay to bounce checks; or, if they are willing to pay a fee associated with making a late loan payment, the practice of paying late is acceptable.  The fact is that many fees are established in order to discourage a certain behavior from occurring.  Often times, fees are a precursor to a negative mark on your credit report.
 
I have a steady job so I can spend as much as I want

What about tomorrow or the next day?  Life is full of unforeseen circumstances.  Fortunately, some are of the positive variety, but for the negative type, such as losing your job, unforeseen circumstances spell immediate trouble for someone who has not made any contingency plans.  In this situation, assets and income go away in a hurry, but liabilities and debt not only stick around, they grow disproportionately as your inability to meet your responsibilities continues.  Your hard earned, good credit standing can change dramatically within a matter of 30 days if you ever allow your debt obligations to outpace your ability to meet those obligations…and, it only takes one occurrence before your credit rating is impacted negatively.
 
Establish What You Know and Don’t Know

There are three major credit bureaus (I have included their contact information at the end of this article), each of which has a different name for your credit score, and each of which utilizes a slightly different formula for calculating your score.  Contact all three and obtain a copy of your credit report from each of them.  Alternatively, there are several businesses that will do this for you and present you with a tri-merge report combining all of the information from the three bureaus into one report.  If you have not obtained or read your credit report before, I strongly suggest that you sit down with a financial professional who is familiar with the credit reporting format and go through any questions or concerns you might have.  There are several aspects of the credit report that are important for you to know and understand.
 
Credit Score

Your credit score can vary greatly from bureau to bureau for a number of reasons.  It is common, however, for lenders to zero in on your middle score as reported by the three credit bureaus.  Credit scores generally range from 380 on the very low end to about 850 on the high end.  If your score is 730 or above, you are usually considered an A+ credit risk.  Or, in other words, you are deemed to be the lowest risk borrower and will therefore be afforded the best interest rates available for the transaction you are requesting.  If your score is between 600 and 699, you are generally considered credit worthy.  You will qualify for financing in most cases.  If, however, your credit score falls below 600, your credit is impaired and you will struggle to qualify for conventional financing programs and their corresponding interest rates.  If your credit score is in this category, you are typically referred to as a sub-prime or high-risk borrower and if you do qualify for financing, you will typically pay high rates of interest as part of the loan agreement.
 
Creditors

Just about every business you have or will obtain credit from will report to a credit bureau.  When you are reviewing your report, note the creditors listed and whether or not a balance owed is indicated.  The credit report will also indicate the last time that each creditor reported information on you.  Double check the information on your credit report with your own records and recollections to ensure accuracy.
 
Type of Account

Each account reported on your credit report will include a code that indicates what type of account it is.  Examples include whether it is an individual or joint account and whether it is a revolving or fixed term debt.  Credit card balances are considered revolving debt; mortgage balances are an example of fixed term debt.  Again, double check the information against your own records to ensure accuracy.
 
Current Status

This is shown as a numeric indicator.  If you have an 01 rating next to the creditor and type of account, you are considered current with that debtor.  Any rating higher than an 01 indicates that you are currently past due with that creditor.  If you have an 02 rating, for example, you are 30 days past due with that creditor according to the report.  An 03 rating indicates that you are 60 days past due and so on.  An 09 rating indicates that the creditor has charged-off the balance that you owe them, which obviously has a further adverse impact on your credit score.
 
The balance owed indicates another factor that determines your status.  The total balance owed to the creditor along with the current monthly payment and any amounts overdue are all reflected on the report.
 
Payment History

There are also numeric indications as to your payment history for as long as each account and creditor has been reporting to the credit bureau.  If your history on a particular account goes back four years, for instance, you will be able to determine how many of your 48 monthly payments were made on time, how many were 30 days late, etc.  You will also be able to determine the date the loan originated, the high balance owed on the loan, and the minimum or regular monthly payment amount.
Note:   Creditors can only report you as past due if your payment is late by 30 days or more.  While I am not advocating that paying your bills up to 29 days late is acceptable, I think it is helpful to know that there is some latitude available to you, relative to your credit rating, should something unforeseen arise.
 
Judgments and Liens

There is a section on your credit report that highlights any civil judgments that have been entered against you; tax liens levied by government agencies, as well as bankruptcy filings.  As a rule of thumb, bankruptcies stay on your credit report for up to seven years and judgments stick around for up to nine years and are renewable in certain circumstances.
 
Inquiries

This section identifies every entity that has run your credit in recent history (usually the last two to three years) and the date they ran the report.
 
Contact Information

Credit reports also contain the telephone number and address for every creditor listed on your report.
 
Improve Your Financial Standing

​Have any or all of your misconceptions been addressed?  Have you figured out what you know and don’t know about your credit?  Now, what can you do?

• Ensure that your credit report is accurate. If you are disputing certain balances or claims, make sure that you have registered your dispute (in writing) with the creditor and the credit bureau.
• Make your payments on time.
• Minimize the number of times you request credit.  Be selective about the lenders and creditors with whom you do business.  Try to establish longer term relationships with them.
• If you experience unforeseen circumstances, work with your creditors on the front end.  Do not procrastinate and hope they won’t notice you are late.
• Manage your debt load, especially revolving, unsecured debt such as credit cards and personal loans.
• Protect all of your personal information and minimize use of that information in open forums in order to effectively guard against identity theft.
• Do not hesitate to seek out a financial advisor or confidant for assistance.
• Regularly read your account statements, balance your checkbook, and remain alert with regard to your finances.
• Read and understand everything that has your signature on it.

 
You can begin to improve your financial standing today.  If you have finished reading this article, you are well on your way.  The rest is up to you.  Here is that contact information:
 
Trans Union                www.Transunion.com
                                    (800) 888-4213
 
Experian                      www.Experian.com
                                    (888) 397-3742
 
Equifax                        www.Equifax.com
                                    (800) 685-1111

This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.

From the Introduction to The Serial Decision Maker series:

I believe that questions, particularly those piqued by curiosity, form the starting point of every great journey; a leading question or series of inquiries will always help outline what a journey will be about and why, if at all, it will be worth taking.