I just got out of a student learning session where Derek Sisterhen of Lukas Coaching presented an easy-to-understand PowerPoint on financial planning. Not being one for math and all the concepts that come with finance, I was pleasantly surprised that he got me so excited and determined about setting myself up for financial independence—a term he defined as being content and confident in your financial circumstances. There was also an unexpected amount of marriage talk, relevant because 84% of married couples cite money as the leading source of tension in their relationship.

He started out by telling us that “personal finance has more to do with who we are and less with math…which is unfortunate because most of us can add, subtract, multiply and divide, but can’t control ourselves.” This leads us into the first section of the 3-part presentation: setting goals.

“If you aim at nothing, you’ll hit it every time.” –Zig Ziglar

In this country we’re pretty good at talking about goals, but pretty bad at actually setting them. Derek says set achievable, measurable goals—both material and emotional—so you can have a sense of victory. You say something is important to you, when are you going to do it? Set a line in the sand, and ask yourself, “What do I have to do between now and then to make it happen?”

In part 2, Derek went on to define opportunities and threats to financial independence. Threats included credit cards (the most expensive way to borrow money), car loans (the biggest asset we finance that depreciates in value), student loans, marketing (which can influence us into making bad financial decisions), and discontentment. Opportunities he highlighted were Roth IRAs (which come out TAX FREE when you cash them in), home buying (if you save up a 20% down payment), car buying (if you pay in cash), getting married (if you have savings and a desire for open communication about money), and college funding for your kids. Derek does say that you should invest in the kids’ college fund after you invest in your retirement, seeing as how “they don’t offer loans for retirement.”

That leaves us with the “Six Keys for a Financial Plan that Works”—my favorite part. You can learn more about what Lukas Coaching is doing on Derek’s radio show Past Due: Radio.

1. Having the attitude of a giver. This is an important part of financial planning because it makes you think of yourself second.
2. Living on less than you make. According to The Wall Street Journal, “70% of Americans live paycheck-to-paycheck.” 70% means it’s not related to certain income levels.
3. Having a written monthly spending plan. This means “telling your money where to go so you don’t have to wonder where it went.” This is a proactive approach. Budget for the coming month, not the current one.
4. Having a vision to live debt free. One of the bullets on Derek’s PowerPoint reported that “when surveyed, 75% of the Forbes 400 cited becoming debt free as the primary reason they generated their wealth (The Millionaire Next Door).”
5. Working together with a spouse or accountability partner. Understand your personality type (saver/spender, nerd/free spirit) and get someone to hold you accountable when you’re not sticking to your plan.
6. Sticking to the Four Walls Concept. Have a “Plan B” for times of financial famine. Prioritize what matters most to what matters least. Know what you will need to spend money on, even when you don’t have much.

The presentation ended with a few minutes for questions that ranged from “When should we start investing our money?” to “Is a house a good investment?” But I won’t go into those subjects. I learned a lot, but this is a communications and social media blog. I’ve got to keep it relevant, which I am about to do.

Just after returning to my desk, I saw a tweet by @SocialMedia411 that said “Got Debt? Be Careful What You Post On Facebook, Collection Agencies Might Be Watching You” complete with a link to a blog post about how “More collection agencies [are] turning to social networking sites.” The argument continues about whether it’s a violation of privacy, or whether the fact that the information is out publicly makes it ok. Either way, it’s a subject we should all be aware of.

Photo by Tracey O