$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ WEALTH HEALTHY WOMEN [TM] Healthy Attitudes ==> Wealthy Women [TM] Volume 1, Number 2 October, 2000 $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ WELCOME to Wealth Healthy Women [TM], a free e-mail newsletter for women seeking greater financial freedom and well-being. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ IN THIS ISSUE: 1. Note From Your Editor, Lynne 2. Article: Getting Started on Your WealthHealthy Journey - Busting Through Mind Traps 3. Resource Spotlight 4. WealthHealthy Announcements ************************************************************ Note from Your Editor The summer is over and Fall is upon us. For some of us, it is a time of delving into new classes or projects. Many of us are beginning to anticipate the holiday season, a time of giving and entertaining. What better time to get a handle on your money matters? This month's feature article continues the topic that we began in September - understanding that change is a process, discussing the stages of change, and evaluating where you are in the process of moving toward greater financial freedom and well-being. After reading the feature article, consider treating yourself to a FREE teleclass on "Busting Through Mind Traps" that can block us from moving toward our financial goals and best interests. See the WealthHealthy Announcements section for dates and times. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Feature Article: Getting Started on Your WealthHealthy Journey - Busting Through Mind Traps Last month, we discussed the Stages of Change model (REMEMBER: Precontemplation, Contemplation, Preparation, Action, and Maintenance) for perspective on taking your journey to greater wealthhealth. We focused on increasing AWARENESS of your current relationship with money by taking the Relationship with Money Survey at http://wealthhealthy.com. We also focused on key questions related to change - reasons why you'd like to improve or enhance your relationship with money, typical excuses you give yourself for not making changes, and consequences of changing as well as not changing how you earn, spend, save, and invest. Now, we want to look at reasons WHY many women (and men) say that they want to have greater financial freedom and success with handling their money yet don't end up with the results that they wish for. $ Mind Traps$ While we may want change, it also is scary. Change creates uncertainty. We can fall into common "mind traps" that prevent us from feeling the insecurity of uncertainty. However, they also prevent us from moving forward, keeping us in the Contemplation stage. Here are a few common traps and ways to address them. 1. "I'm so busy right now. I'll get to it later." - Rationalizing is a very common trap that can prevent us from taking even basic steps, such as looking at our checking and savings account balances, or knowing how our retirement account is currently invested. If this is your mind trap, your solution is to take your financial self seriously. For example, my client Sandy vividly imagined herself in the future, having to beg and borrow money from her siblings because she had put off managing her finances. This was so distasteful to her that she began figuring out her assets and expenses. Another client, Anna, focused on her self-image as a competent, effective attorney. Recognizing that she was "dropping the ball" with her own finances "tarnished her picture." Putting off her financial game plan became unacceptable. 2. "It's better not to do anything until I really understand all about investing and saving." - While knowledge is important, this perfectionistic belief can be the path to procrastination. Often this belief is based in a wish for certainty, and fear of making mistakes along the way. If this is your mind trap, your solution may be to realize that you are feeling overwhelmed by the big picture. Set a small goal for yourself, perhaps as simple as reading one article that overviews various savings and investment options. For example, many banks and financial institutions send out newsletters that explain basic investment options such as CDs, bonds, types of retirement accounts, etc. 3. "If I could just find the right financial planner..." - While it can be very helpful to work with a trustworthy planner, this thought can be a signal of wishful thinking. It may be the wish that someone else who is more knowledgeable, bold, clever will appear and take care of your financial needs. Variations on this theme are hopes that one's husband\partner\father will be the shining knight. Indirectly, this belief can undermine discovering your own potential talents for managing your money. If this is your mind trap, your initial step may simply be recognizing that wishful thinking is operating, and that it can also be undermining your confidence. Consider talking to a friend or co-worker who handles her own finances. Ask how she got started, what she has learned, what mistakes she has made and what she learned from them. 4. "No one really knows what is going to happen in this market, so I'm not going to waste my time on those financial advisers." - This attitude is the opposite of wishful thinking. It is a form of projecting that others are as uncertain and inadequate as you feel. It can result in not reading financial articles or consulting financial experts that could guide you on your journey to financial well-being. If this is your mind trap, again recognizing that this may be a signal of uncertainty or fear is a good first step. It is true that no one can guarantee that you will be financially secure if you take certain steps, and that someone else's financial plan may not suit your goals and values. However, there is a lot of room in-between for clarifying your particular financial needs and desires, and investigating specific steps that you can take to develop a financial plan. In addition, remember that no one makes no mistakes in the financial world. Rather, it is a matter of knowing your level of risk tolerance, taking actions that respect your risk tolerance, and "observing and correcting" when an action is not succeeding. 5. "I followed that stock tip and really got burnt. I'm done with investing in the market." - Sometimes we can react to the fear of change by jumping in before we really know enough to act effectively. We can then become discouraged, and end up not learning how to take effective action - and doing little or nothing in our own behalf. If this is your mind trap, the solution may be recognizing that you were eager, and jumped into action before being well-prepared. Take a step back and analyze what you learned, and what you need to understand, rather than judging yourself. Recognizing that mistakes happen is important for this mind trap as well. There are probably as many variations on "mind traps" as there are human beings. Yet if we can become aware of our own unique traps, we are in a better place of addressing them and changing them to more useful "coaching" thoughts. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Resource Spotlight The WealthHealthy Resource Spotlight features valuable advice and information from financial experts on WealthHealthy-related topics. This month's contribution is from the National Association of Online Investors (NAOI). I met NAOI's President, Lee Hevner at a personal finance conference held in Washington, DC last month. I liked the philosophy of the organization - to help individuals "get smart quick" about online investing. They offer a Home Study Course that provides comprehensive educational materials and resources for investing online with knowledge and confidence. NAOI gave me permission to print this section from their Online Investing Home Study Course that explains the "healthy attitudes" necessary to be a successful investor. Many of these attitudes are relevant to ALL aspects of managing your relationship with money - earning, spending, saving as well as investing - and to approaching life in general! $ Are You Prepared To Be A Successful Trader? $ Book after book have been written on the psychology of the successful investor. Armed with the knowledge and structured methodology of this course we don't believe you need to have been a born investor or an exceptional risk taker to make better than average returns in the market. You do, however, need to have a certain perspective and attitude toward the investing process. This can be learned. Below we present in summary form the attitudes and actions that separate winners from losers when trading individual stocks. Differences between winners and losers: * Winners learn from mistakes. Losers don't. * Winners accept personal responsibility for losses. Losers blame everybody and everything. * Winners take calculated/educated risks. Losers take risks. * Winners control their emotions. Losers are emotionally tied to each investment. * Winners are always learning and improving. Losers suppress the bad and brag about the good. * Winners have an investing plan with a specific goal. Losers just want to make "more money". * Winners identify their strengths and weaknesses and act accordingly. Losers never do self analysis. * Winners have a plan to succeed. Losers invest aimlessly and randomly. * Winners understand the principles of risk and reward and diversify their holdings. Losers jump with both feet into the "latest, greatest thing". * Winners plan. Losers react. * Winners view losses objectively as a cost of business. Losers take losses personally and get depressed. * Winners know there is no effective "get rich quick" scheme. Losers continuously attend investing "seminars" on "can't miss" techniques or software. * Winners know that education, time and dedication produce results. Losers forever search for the "magic formula". * Winners know that effective investing requires time and effort. Losers think that buying a $2000 software program is 90% of the battle. * Winners take money from losers. Plan to be a Winner! Excerpted from the "NAOI Online Investing Home Study Course" Copyright NAOI 2000 www.naoi.org. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ WealthHealthy Announcements FREE WealthHealthy Teleclasses on "Busting Through Mind Traps." Do you want to be WealthHealthy, yet feel that something is holding you back from moving forward? Join other like-minded women in a fun, interactive 50-minute class to uncover your mind trap(s) and develop solutions to bust through them. Two teleclasses will be offered: 1. Mind Traps for Contemplators - For women just beginning to work on their relationship with money. Date: Tuesday, October 24 at 7:00 pm (Eastern Time). 2. Advanced Mind Traps - For women who already have a money plan and are finding themselves blocked in taking action. Date: Tuesday, October 31 at 7:00 pm (Eastern Time) - remember Daylight Savings Time ends on October 29! Register by contacting Lynne@WealthHealthy.com. Please put "Mind Traps" in the Subject box of your e-mail. Indicate which class you want to take. $$$$ To hear a 10-minute description of the WealthHealthy approach, as well as a bit about me, you can call 1-212-461-2660. If you are interested in coaching, simply leave a message for me, following the 10-minute message. Or, e-mail me at Lynne@WealthHealthy.com. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Pass this newsletter along to friends, family, and colleagues who also may be interested in moving toward greater financial freedom and well-being. They can get their own free subscription by going to http://wealthhealthy.com and signing up - it's as simple as typing in their e-mail address. Or, send an e-mail to whw-request@WealthHealthy.com with the word "subscribe" in the body of the letter. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ NOTE: Wealth Healthy Women [TM] is intended for informational and educational purposes only. It is not a substitute for financial, legal, accounting, psychotherapeutic, or other professional advice and consultation. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Copyright 2000 Lynne Hornyak, Ph.D. All rights reserved. The above material is copyrighted but you may retransmit or distribute it to whomever you wish as long as not a single word is changed, added or deleted, including the contact information. However, you may not copy it to a website without my permission. Reprint permission will be freely granted upon request. Advance written permission must be obtained for any reprinting of this material in modified or altered form. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ CONTACT INFORMATION Lynne Hornyak, Ph.D. WealthHealthy.com Phone: (202) 387-5923 Fax: (202) 986-8980 e-mail: Lynne@WealthHealthy.com Web: http://wealthhealthy.com