Posted on

Time Value of Money

Understanding The Time Value of Money

Today’s guest post is by Gary Forman, founder of the Dollar Stretcher newsletter and website. One of his clients asked Gary:

“Does anyone think that $20,000 will buy a new car forty years from today? Maybe it’s time for an article on the time value of money, accounting for inflation in long term investment plans, and related issues.” ~  Lester

Lester was referring to an article that I had written saying that when you buy something today, you’re agreeing not to buy something more expensive later. And, he’s right. You can’t simply take today’s prices and expect them to be valid for future purchases, especially if you’re looking more than a few years into the future.

The concept of rising prices is only one component of an economic theory called “the time value of money.”

Having money over a period of time is valuable. Money can earn more money. Suppose that you had $100 today and could earn 10% on it. A year from now you’d have $110. In two years $121. So having that $100 is valuable.

Also, I’d rather have $100 today than wait and get it tomorrow. I won’t earn much interest in one day, but it should be worth a little more tomorrow. It’s also safer getting it today. There’s always that possibility, however small, that you won’t get the money tomorrow. By getting it today, you’ve eliminated that risk.

Another area where the time value of money applies is in the area of retirement planning. Suppose that you expect to retire in 20 years. You know that prices will rise before then. But can you estimate by how much?

Rule of 72

A quick and easy way to answer that question is to use the rule of 72. The formula is easy. The number of years in the future times the interest rate you expect equals 72. That’s how long it will take for prices to double.

Let’s do an example. You want to know how long it will take prices to double if inflation is 6%. A little algebra tells us that you divide 72 by 6. Thus, prices will double in 12 years. So if you expect to retire in 20 years and inflation is 6%, prices will be nearly 4 times higher when you retire. ($1 x 2 = $2 in 12 years. That $2 x 2 = $4 the next 12 years. Or 4 times in 24 years)

Suppose that you had $100 today and could earn 10% on it. A year from now you’d have $110. In two years $121. So having that $100 now is valuable. Also, I’d rather have $100 today than wait and get it tomorrow. I won’t earn much interest in one day, but it should be worth a little more tomorrow. It’s also safer getting it today. There’s always that possibility, however small, that you won’t get the money tomorrow. By getting it today, you’ve eliminated that risk.

If you play with the formula, you’ll find that the rate of interest you choose makes a big difference in the results. For instance, 3% inflation would mean that prices would double every 24 years. Quite a difference compared to our first example – going up 4 times in the same amount of time.

You can also use the same formula to calculate how long it will take your money to double in an investment account. For instance, if you’re earning 9% on your investments, it will take 8 years to double. (9 x 8 = 72).

You may want to get more precise than our little formula will allow. For that, you’ll need something called a financial function calculator. It will do a lot more than the time value of money formula, but it’s easy enough to learn how to use it for time value questions. And, they’re not expensive.

Some people will subtract the inflation rate from their investment return to get a “real” rate of return on their retirement savings. For instance, if you earned 8% on the money and inflation was 3%, you’ve really gained 5% in buying power.

Another application for time value of money is when you’re trying to decide which payment plan you’d prefer. What happens if you were told that you could buy a car for $20,000 cash today. Or you could make $400 payments for 60 months. Or you could put $4,000 down and make $375 payments for 48 months.

You could add up all the payments you would make, and that would be a good rough estimate. But you’d get a more precise answer by using a calculator to bring everything back to today’s dollars so that you’d have a fairer comparison.

$1 today is more valuable

Don’t be intimidated by the concept. Just remember that having $1 today is more valuable that having one a year from now. And the same holds true if you’re paying. A dollar that you pay today is more valuable than one that you’ll pay next year.
With an understanding of the time value of money and the ability to use the rule of 72, you can help yourself in a variety of common money situations.

~~~~~~~

Thanks Gary! This article by Gary Foreman originally appeared in The Dollar Stretcher.com.

Gary Foreman is a former financial planner and purchasing manager who founded The Dollar Stretcher.com website and newsletters in 1996. He’s been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money, Credit.com and CreditCards.com. Gary shares his philosophy of money here. You can follow Gary on Twitter or visit Gary Foreman on Google+. Gary is also available for audio, video or print interviews. For more info see his media page.

Time Value of Money Image via weakonomics.com

 

Posted on

Money-Savvy Travel Hacks

Money-Savvy Travel Hacks

Everyone deserves an escape from work now and then, and you don’t need to smash your piggy bank to have a good time. Refreshing visions of “getting away” are calling to you. Your vacation demands to be taken! Make the most of your R & R dollars using these money-savvy travel hacks to create an oasis of fun and relaxation. In fact, getting away is one of the best things you can do for your physical and mental health! Check out the healthy benefits of traveling via PositiveHealthWellness.

Plan Ahead

Be proactive and reap the benefits of your hard work without going into debt. Find discount codes for your favorite destination and pre-purchase museum tickets, boat rides or city-saver coupon books ahead of time. You will be amazed at how much money you can save!

Book fixed-cost trips

Explore and select trips that fit the exact dollar amount in your budget. No extra fees & no surprises. Another method for destination selection is to pick a theme. Base your trip on some of your favorite activities. Love wine? Tour a few vineyards or participate in a cooking class seminar. History buffs can find numerous forts and museums across the country while nature lovers have incredible opportunities to hike and bike, enjoying a personal experience in stunning landscapes.

Spectacular Vistas and Memories

Another fabulous way to see America is to take advantage of the breathtaking national and state parks here in the USA. Visit nps.gov to find a national park within driving distance. For even more road trip ideas, visit http://www.visittheusa.com.

Lower Hotel Costs

Travel with friends and family and rent a condo or house. One option is to find smaller independently owned hotels that are not part of a chain. You will often enjoy more personal service and spend less. Tired of high-rise condos with slow elevators and too many people? Investigate AirBNB or Vacation Homes By Owner for spacious digs at much lower prices and the opportunity to have more privacy.

Favorite Destinations

Find the “hot-spot” and stay in the nearest town for bigger savings. For example, you don’t mind driving an extra 20-30 minutes, when traveling to Niagara Falls, book a hotel room in Buffalo, New York – it’s only a 20-minute drive across the border. You can cut your hotel budget in half. Now you have the best of both worlds: you saved saved a ton of money while seeing all of the sights!

Taking an escape from work can be a great stress reliever, provide memorable time with family and friends, and bring a sense of renewal to your life. Reward yourself! Keeping your focus on a healthy relationship with your money while at work or play allows you to make the most of your vacation while taking advantage of smart,  money-savvy travel hacks.  Be sure to follow @themoneynerve on Facebook, Twitter, and Instagram for more travel tips and tools.

Have a great vacation this summer — You deserve it!

Posted on

Ready To Invest: Start Today

Ready to Invest- The Money Nerve

Ready to Invest: Start Today

Before you start diving into investments,

let’s look a few ways to be smart with your money.

What is investing? Investing is actually pretty simple; you are essentially putting your money to work for you so that you don’t have to take a second job or work overtime hours to increase your earning potential. There are many different ways to make an investment, such as stocks, bonds, mutual funds or real estate, and they don’t always require a large sum of money to start.

Learn the terminology of investing

Many of the larger investment companies provide a wealth of content to teach beginners the language of investing and share information about the multiple businesses you can invest in, and the various methods to build your nest egg. TIME=MONEY Therefore, the earlier you begin saving and investing, the higher returns you will see compared investing the same amount of money 20 years later. Money creates money and your lump sum will increase exponentially – if you nurture it and let it grow over time. It is tempting to skim the profit off the initial investment, but you will significantly reduce your total gains with that choice.

I was given some sound advice when I was younger, “Don’t invest money that you can’t afford to lose.” Anytime you put your money where outside influences can create an environment where massive gains can be made; you must also be aware that it can result in substantial losses. More volatility can create huge wins, and that “lucky break syndrome” is addictive to many of us. Hence the warning: this is “extra money” that you want to grow without putting your current lifestyle in jeopardy. If a stock loss means you can’t pay your bills, you need to adjust your investment strategy!

Be smart, do some homework. I like to advise people ready to invest in the stock market to select high-value blue-chip companies that pay dividends. Invest in value and don’t treat it as a quick sale. It is a stable place to park your money, and over time the value will continue to grow, building your wealth.

Many Paths to Reach Your Goal

Another option for entering the stock market is to purchase Exchange Traded Funds, also called EFTs. Investing in EFTs is similar to buying stocks, but you are placing your money into funds that track indexes like the NASDAQ-100 Index, S&P 500, Dow Jones, etc. By purchasing a fund that has many stocks in a particular index, you are not trying to “beat the market” you are taking advantage of being “in the market” with a broader range of stocks being traded for a more consistent result. One of the benefits of ETFs is having the broad array of a diversified portfolio with the ease of buying and selling a single stock. You don’t have to wait for the market to close to make changes. As you get more savvy in following the market or electing to make bolder choices, you can purchase ETF shares on margin, short sell shares, or hold for the long term. You can make trades in the stock market as an individual or you can use a stockbroker; each has advantages and disadvantages; just explore your options.

If the stock market is too much of a gamble or too virtual for your budget, then real estate is another option for investing. It is a fact that the world’s population continues to increase, but there will never be more land. You can begin by investing in land or property. If you live in an area that is having significant growth, look for some land nearby that will grow in value as the area expands.

Building Your Tangible Assets

A rental house might be a solid choice; many people do not have the money to buy a home and need to rent. For this reason, owning property can be another option for investing in a tangible asset. If you have saved a substantial amount of money, pay cash for the house, and the monthly rent will pay for the real estate over time. Or when you are ready to invest, place a down payment on a small home and collect a rent that is higher than the mortgage.

Owning smaller property builds your equity without sizable risk because you own the property, make a small amount of profit each month, and can sell this asset if needed. Be sure to open a savings account to cover any expenses such as new appliances or repairs. It is best to keep the cash flow from real estate separate from your personal cash flow. Separate accounts make it easier to track the money flow and calculate the real return (ROI) on your money. As the the property is paid off, you can continue to receive residual income or purchase another piece of property.

Begin With A Simple Plan

There are so many options to build your wealth and these are just a few choices to ponder, once you decide you are ready to invest. Think about your ultimate goal, what you want the money to provide for you and when you might need to use your money, as you grow older. Seek out the good advice of successful financiers. One of my favorites, a brilliant investor is Warren Buffet, and he famously shares his motto, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

Explore. Experience. Achieve.

*This post was also published on http://www.mystrategicdollar.com/. It is always a pleasure to work with people who want to help others gain more traction in their journey to create financial freedom. If you are looking for ways to manage your money more effectively, check out my “tools” page and be sure to read Lance’s blogposts at the link above.

Posted on

Mental Map for Living in Proactive Abundance

Mental Map-Proactive Abundance

Mental Map for Living in Proactive Abundance

Congratulations! You filed your taxes. But, for whatever reason, you are unhappy. Maybe you paid too much or didn’t get the refund you thought you deserved. Good news! Use this week to make a mental map for living in proactive abundance. You have almost a year to change your financial plans for 2017.

Embrace Your Story

Embrace your story; own your story. Be willing to accept that you might be partially responsible for your current state of affairs. Don’t judge yourself or wallow in self-pity. Pause and make the necessary adjustments to get where you want to be. Whether you want to have millions or invest thousands of dollars, own lots of property, want to save for a Jacuzzi, or stop bouncing checks, you need to acknowledge your goals. After you decide what is relevant for the next year or two, you must make the commitment to go for it.

There are Plenty of Fish in the Sea

When you have a mental map, it is wise to remember that many routes can lead to the same destination. As you confront challenges or obstacles when reaching for your goal, keep in mind that there are alternate means to achieve your result. The ability to remain flexible and take advantage of opportunities that present themselves, benefits your long term vision of success. If your current environment is not generating what you need, it may be time to find a new solution, dream bigger, get a new job or look internally to see where you can make changes. Target that mental vision into a focused strategy and begin panning for gold!

Don’t Be Your Worst Enemy

Many people sabotage their best efforts and have no idea why they do that. Self-sabotage is a reactive emotional choice prompted by old habits. Defining your intentions results in defining the goal. With intentional effort, you now create a mental map for living in proactive abundance. If you look for good things in your life, it is safe to say; you will capitalize on each opportunity that pops up. Trust in yourself – be your best friend. Respect yourself, don’t talk down to yourself. When you honor who you are, you then create an internal dialogue that moves you forward. Taking positive steps on a daily basis will result in a series of “mini-successes” that lead to long-term satisfaction.

Mental Mapping Your Finances

Mental mapping your approach toward finances means rerouting the I-can’t-afford-it mentality. I like the word mapping because we are all on a path. No path leads the wrong way. Are you taking the scenic route to your financial destination? It might take you three times as long to get there, but that doesn’t mean you won’t have a beautiful journey.

Creating a Mental Map for Living in Proactive Abundance

You can create a new mental map about money that will help you move toward your financial goals. Your current mental map might tell you that you can’t enjoy your present lifestyle without using credit cards. You don’t care what the interest rate is. In fact, you may have no clue what the interest is! You could be paying 20 or 30 percent on your credit card. If you curbed your expenses and made small budget changes each week — that credit card interest saved could buy you a new car or fund a trip to Italy. You may find you can have a better life when you stop using credit cards altogether.

 

Posted on

Intentional Words Create an Abundant Life

Intentional words create an abundant life!

Words are powerful

Listen to what you are saying to yourself and the world. Now, consciously use words to create a new paradigm. Think before you speak. If you want to change where your life is going, then it’s time to become aware of your internal priorities. It is feasible to live an abundant life regardless of your salary level.

People say, “I need a bigger TV,” or “I need to go to Hawaii.” But these are wants are not needs. They may want those things, yet they can live a full life without a bigger screen or vacation. People need oxygen; they don’t need the newest cell phone upgrade. By prioritizing need over want, many people find that they are more connected to what is valuable to them, and don’t want to waste time or money on the latest gadget advertised by the media.

Once you decide what is important, listen to your words, begin to give yourself more choices, and change your mental map. Your word is your magic wand and the words you speak create your destiny! If you constantly want more or feel overwhelmed by the “things” you have accumulated, you can redefine what “MORE” can be. You will want to expand your vocabulary and choose new words to use.

MORE isn’t always better

Adopt the mantra that MORE isn’t always better. More than enough food may make you heavier and less healthy. More than enough alcohol may consume your budget and your good judgment. More than enough clothes may cause you stress each day when you can’t decide what the “right look” is. And more than enough stuff takes over your life, clutters your house and mental state, and strains your budget when you have to pay to store all your extra stuff! Having less does not mean being poor or restricted. you can live an abundant life thru positive choices.

Create an abundant life where MORE is less

Here are some examples:
More time with friends, less time stressing about work or money.
More options to make life fulfilling, less fear of what others think.
Intentionally selecting actions to complete your life goals, build a more meaningful life and less blame, shame, and frustration.

Choose the Life You Wish to Lead

By choosing what positive choices and changes you want and then directing your energy on those, you spend less time fixating on the negative impulses, purchases, and decisions. Thus, you begin to live each day with the intention of creating an abundant and proactive life, personally and financially.

What words will you use?

Find powerful action words to support a sense of purpose like “I will”  “I can” “My next step is…” Give yourself permission to make conscious choices. Let go of old assumptions and give your life the value it deserves. Start by substituting the word “but” with the word “and.” It opens up your options! Try it, “I really want _____ and I can _____ to achieve that.” You only have one life ~ Live an abundant life and make the most of it!

Posted on

Finding Personal Success

Finding Personal Success

Finding Personal Success

Thirty years ago, success was defined as working at one company for a lifetime and being a loyal worker. Today, finding personal success can be found in many ways. Increase your personal viability by searching for opportunities that give you the power to grow. Build your success within an existing organization or seeking new ventures beyond a routine 9-5 job. Additionally, increasing  your skill level often results in an exciting job in an emerging field. Don’t sell yourself short.

As you review any negative inner dialogue, toss away outdated opinions or self defeating ideas that no longer work for you. This helps you redefine up your concept of success. Now it’s time to plan the next steps you need to fulfill your goals. Be positive in order to set yourself up as a winner.  Map out your strategic plan with small bite-sized goals that are fairly easy to achieve. The first thing to remember in your quest to find personal success is to be prepared – there will probably be bumps along the way, along with some frustrating moments. However, you can move past these challenges by being prepared, flexible and learning to maneuver more effectively.

Take a moment to assess your talents, time and budget.

If you are unsure, you can turn around feelings of insecurity:

• Evaluate your social circle
• Surround yourself with like-minded people who support you
• Budget truthfully to know your current financial position

An honest assessment regarding your current situation results in a more successful result.

Every past decision brought you exactly where you are today.

This is where you wanted to be! Every decision you have made led you to this place. Do you like where you are? Does it fulfill the “dream life” you envisioned? If this place in life shocks you, don’t despair, because today is the opportunity to make a change. As a matter of fact, now is the best time to formulate a fresh plan.

This is my favorite part of the equation because this is where you make some Money Magic appear. How do you make this happen? It is totally up to you. YOU control the numbers. YOU define how and where you want to spend your money. YOU set intentions and YOU take action. Therefore, don’t let the media, advertisers, family or friends tell you what YOU want. Take a stand and invest in YOU! I would like to point out that stating what is most important in your life results in a personal and financial roadmap that delivers a genuine outcome.

Reaffirm strategic goals

“I am passionate about ________ and my goal is to someday _________!”

As a result of stating what is meaningful, consistent actions every day result in completing many small goals. Finding your personal success is enhanced by achieving goals consistently. Winning begets winning, and this mental strength becomes a tool for you to build a meaningful, prosperous life – even when detours pop up along the way!

Charting Your Course

Now you are charting your own course with thoughtful intention. As you know, budgets ebb and flow, but continue to invest in your long-term plans. The benefit of planting seeds of intentional, conscious choice are evident when you finally purchase your first home or take that coveted “over the top” European vacation. Living an abundant life becomes a way of life, not just a one-time destination. In fact, now is the time to harvest the rewards!

Posted on

Tax Tips to Lower Your 2016 Tax Bill

Tax Tips to Lower Your 2016 Tax Bill

You still have time to cut your taxes — and make smart moves to lower next year’s as well. As a certified CPA myself, I am swimming through a pile of tax returns for my clients! I wanted you to have some good info on how to lower your 2016 tax bill, if you haven’t filed yet.  Here are some effective tips from SANDRA BLOCK, Senior Associate Editor, Kiplinger’s Personal Finance.

Most taxpayers approach the tax-filing deadline with a mixture of fear and loathing. But this year, there are reasons to be more sanguine. For one thing, because 2016 was an election year, Congress didn’t tinker much with the tax code. If your personal circumstances didn’t change last year, your tax bill probably won’t change much, either. And if you’re a do-it-yourself filer, you don’t have to get up to speed on a slew of new rules.

Because April 15 falls on a Saturday this year and April 17 is a holiday in Washington, D.C., you have until Tuesday, April 18, to file your federal tax return.

VIDEO: How to Prepare for Tax Season

Here are some ways you can still trim your 2016 tax bill, plus potential speed bumps.

Contribute to an IRA.

If you’re not enrolled in a 401(k) or other workplace retirement plan, you can deduct an IRA contribution of up to $5,500 ($6,500 if you’re 50 or older), no matter how high your income. You have until April 18 to make a 2016 contribution to your IRA.

Fund a health savings account.

You also have until April 18 to set up and fund a health savings account for 2016. To qualify, you must have had an HSA-eligible insurance policy at least since December 1.

Get credit for tuition payments.

The American Opportunity tax credit, worth up to $2,500 per eligible student for the first four years of college, is a valuable tax break for parents of college students.

Health care housekeeping.

President Trump has vowed to repeal the Affordable Care Act, but it was still in effect in 2016, so you’ll have to deal with it on your tax return. To avoid a “shared responsibility payment”—longhand for a penalty—you must prove that you had qualifying health insurance in 2016 or were eligible for an exemption.

Want to investigate these ideas  a little deeper? Additional details HERE

Posted on

Spring Cleaning Your Finances to Make Life Easier

The Money Nerve

There is something refreshing about the advent of spring; it’s officially time for reviewing and renewing! This week, we take a look at spring cleaning your finances.

Ask, “WHY,” before spring cleaning your finances

Why do you budget, save, spend, insure, invest and plan the way that you do? Are you happy with how your finances are working for you? Write down some clear and definitive ideas to sweep away old habits and create a more satisfying result.

Review your budget

Balance all your bank accounts and take a second look your past six months of credit card charges to see if all adds up correctly and that there are no billing errors.

What??? You don’t have a budget. Today is a good day to write down your income and your expenses. With that knowledge, you can now plan and direct your dollars into more focused streams!

Set a few primary, short-term goals

For example, you could set a goal for paying off the credit card with the lowest balance. Set yourself up to hit your new objectives. As you achieve success with your smaller financial projects, you gain confidence to complete larger intentions! And that is a win-win for you and your wallet!

Clear Out the Clutter

Take a serious look at everything you own. Give deep thought to want you want to be most important in your life. Set up actions steps to turn that visual intention into reality. Too much stuff? Distill it down. It’s easier to take care of less. And you keep what is most valuable to you. Too many accounts to manage? Pare down to three accounts, now you have more money at each institution and have created more “klout” for yourself. Utilize direct deposit and automate a small percentage to savings each week.

Streamlining your efforts help to clear your mind, and allow you to focus on creating a proactive life. You will find that spring cleaning your finances, and stating goals result in intentional living.

Find more #moneynerve tips – Enjoy this new vodcast: Funny Money Talks!

Posted on

Setting Your Financial Mindset, Five Ideas for Drastic Change

The Money nerve

Setting Your Financial Mindset

Money is a part of our lives, we all plan how to spend it, and we all plan to save it!

Today, we look at some fiscal challenges and offer tools for setting your financial mindset. Emotions and old habits can rule your decisions about money. Here are some challenges people have in managing their money and a few suggestions for shifting toward a new “money” mindset.

See if these issues sound familiar:

1. I Don’t Have Enough Money

2. I Will Never Get Ahead

3. I Don’t Plan; The World Will Bring Me Good Fortune

4. It’s Not My Fault; Nobody Taught Me

5. I Don’t Have Time to Budget

It is easy to drift on an endless journey when you have no plan, goal or destination. When you are ambiguous about the direction you want to go, cruising on autopilot will never result in the “real-life” successes you dream about.

Five ideas for making drastic change and setting your financial mindset:

Enough Money

Before you can determine whether or not you have enough money, you will need to know how much money you make. Many people will use their full salary to plan their expenses, but forget to consider taxes and social security deductions. Under-estimate the money coming in and over-estimate your spending.

Never Get Ahead

Focus on positive choices each month, and eliminate the resignation and depression that come from reacting to financial headaches. Choose how you want to delegate your dollars. Change the way you view money by thinking of money as a choice, not a dictator, in life. If you have $100, you have the power to delegate a third for saving, a third for eating lunch out 2 or 3 times and a third for bills.

The World Will Bring Me Good Fortune

Well, I am a firm believer in sending out positive vibes and seeing that energy coming back my way. However, I also know that when I have an action plan to support that attitude, I am more successful. It is no suprise that the people who plan their days and work the plan seem to luckier than everyone else! Set aside five minutes to write down the main focus for your day or your week, and set yourself up to your best advantage. No one can help you better than YOU CAN!

It’s Not My Fault

Take a good look in the mirror, you are the CEO of your life. Take a truthful look at your assets and your bad habits. Explore where you can make small changes that will move your life toward a more abundant mindset. Making intentional choices creates a feeling of independence and eliminates the need to blame others. Every choice you made in the last five years resulted in where you are today. If you are not happy with your life, snap out of the routine of non-decision-making. Begin making new choices that will give life to the dreams and goals you have.

Don’t Have Time to Budget

People are so busy, being busy, that they often mistake insignificant activity as being more valuable than a scheduled chunk of time for planning. It’s a bit of a paradox, but setting aside 30 minutes a month to review your finances and make a plan for the next month, can actually save you time and money. Just jotting down your monthly bills on an index card and slipping it your wallet, will help you stay on track. Dividing your spendable dollars into envelopes is another good idea for seeing where money flows.

We all have the opportunity to create the life we dream of, it takes a little faith, a plan and choices to make it happen. A goal is merely a dream with a deadline. Go for it!

Posted on

Convert a Lucky Break into Positive Change

Lucky break

A Lucky Break!

Imagine you landed a brand new job, won a $100,000, or just got the raise and promotion you have been wanting. You may tell others, “Whew, that was a lucky break!” The world often offers us a shot at a new opportunity, but we don’t always reach for the golden ring. An open mind can convert that moment of opportunity, that lucky break, into positive change.

Fear of Success

Some people are fearful when they succeed. They don’t believe in themselves. When good things happen in their life, they wait to see if others have discovered they are “fake.” People who feel they are not worthy think everyone else has life figured out. Any success they achieve is viewed as a fluke of nature, and will probably never happen again. By fearing the success they crave, any meaningful movement forward becomes an illusion. They are unable to flip a chance of a lifetime into a life of possibilities.

Living in the Past

Many of us still hear voices from the past. Maybe our parents said we failed or that we would never amount to anything. Tuning into old or negative thoughts keeps us captive by clouding our minds. If there is too much baggage rattling around in our brains, it becomes harder to hear the new possibilities. Let’s look at breaking that mindset.

Learn to Say YES!

As long as people deny new experiences, the door to opportunity will stay shut. Henry Ford said, “Whether you think you can, or you think you can’t – you’re right.” When Lady Luck drops an unexpected gift in your lap, use the chance to create momentum and excitement for the future.

Learn to say yes by changing your mental perspective. If your answer to any question or request is always no, stop and think before you reply. Take a moment to think about the possible outcomes before committing to others. Give yourself the power to visualize different options.

Know Your Value

Examine your value. Explore how to capitalize on your lucky break and spread the abundance to build long term benefits. You got the new job, so now is the time to sign up for the company assisted 401K retirement plan and invest in you. Another important step, set up an automatic deposit to funnel 5% of your salary into a dedicated savings account.

Congratulations, you won $100,000! After you pay the taxes, maybe you invest 10% of the money, quit renting and purchase a new home. Now would a good time to begin a college fund for your children. All of these actions will “pay you back” in the long run.

Finally, you got the raise and the promotion you wanted. Celebrate, go out for dinner and drinks! Continue to live off your old salary. If you have credit card debt, use the overage to pay it off. Open a second savings account to save for travel and your next car – what a treat to pay for a big vacation or a new vehicle with cash!

Stepping Stones of Success

Luck comes to all of us in very small and huge chances. Are you prepared to take advantage of that? A chance to take on more responsibility at work can be your lucky break. Creating new protocols in your industry can boost your career. A side hustle fulfilling a childhood dream can propel a fabulous small business. Be open to the abundance that each of these moments has – you can convert a lucky break into positive change.