Category Archives: Mindset

Creating a Comprehensive Financial Life Plan

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A Financial Life Plan can help you get on the path to financial freedom.

A comprehensive life financial plan provides a picture of your current finances, financial goals and any strategies you’ve set to achieve those goals. The plan should include details of your cash flow, savings, debt, investments, and other elements of your financial life.

Creating a life financial plan can help bring things into focus—it’s like a roadmap to help you figure out how to reach your financial goals. a clear picture of what you want to accomplish, but the details of how to make it happen.

Financial planning involves identifying financial goals you want to achieve and making sure you have the “what-ifs” covered. This can help guide you through key decisions in life and make you less vulnerable to setbacks and financial hardships down the line. You can feel more confident about financial decision-making when you have a comprehensive plan to guide you. Your financial plan might cover a number of areas, from managing debt and saving for the future to building wealth and protecting your money.

Financial Life Planning connects our financial realities with our values and the lives we dream to live. It helps both pre-retirees and retirees identify their core values and connect them with their financial decisions and life’s financial, health and emotional goals.

It is a financial planning and investing approach which helps people align their investment portfolio with their values and with the things which are important to them. Think of it like a holistic roadmap for your financial well-being.

Financial life plan focuses on the emotional side of financial planning. It considers people’s anxiety, habits, behaviors and other emotions (e.g., fear and greed) tied to investing money and accumulating wealth. People struggling with retirement and other finances really need a plan that helps them manage their attitudes, habits, behaviors, goals and resources.

“The right plan, executed faithfully, can be the difference between success and failure in any endeavor.” Brett N. Steenbarger, Ph.D., author of The Psychology of Trading

Whether you need to reduce spending and eliminate debt, increase your savings, or just refine the details, once you understand your financial mindset and associated behaviors; once you know where you are and where you need to go financially—a financial life plan can provide a more coherent sense of direction.

Market downturns and investment risk management

During periods of high market volatility and declines, financial life planning, when done correctly, assumes there will be these periods of volatility, panic selling and downturns like the equity markets are experiencing today as a result of COVID-19 pandemic. Any actions taken to significantly reduce or eliminate equity allocation could result in investors coming up short in retirement.

The risk of outliving their assets might be the biggest risk that retirees face today. With many of Americans living longer and the rising costs of healthcare in retirement, most retirees need a level of exposure to stocks in their portfolio for growth and to maintain their standard of living.

Steps to creating a Comprehensive Financial Life Plan

  1. Develop a Positive Financial Mindset
    The most important step in developing and following a financial life plan is to examine your mindset about money.
    – Are you ready to accept responsibility for changing your financial situation?
    – Do you believe that you can and will change the way you make financial decisions?
    – Can you identify at least one benefit you hope to gain by changing your financial behavior?
    Financial mindset consists of a predetermined set of beliefs, thoughts, habits and behaviors an individual has about saving by paying yourself first, investing for the long-term and accumulating wealth for financial well-being.
    Every person has a set of financial beliefs, thoughts, habits and behaviors about money and personal finance. Even if they can’t express what their thoughts and mindset are, they still exist both consciously and subconsciously. Just by observing your own financial reality and outcomes, you can begin to better understand your financial mindset, behaviors and habits.
    Thus, it becomes important to develop and nurture a positive financial mindset. Since, it is difficult to develop the good financial habits and behaviors that will be necessary to lead to an improved financial outcome and overall financial well-being without a positive financial mindset.
  2. Write down your goals
    One of the first things you should ask yourself is what you want your money to accomplish. Financial goals will differ in the length of time needed to achieve them. Be sure every goal has a specific purpose, a dollar amount that it will cost, and a realistic target date. Make sure your goals are realistic and not set too high, or frustration may keep you from reaching them.
    – What are your short-term needs? Short-term goals are priorities that can be accomplished within two years.
    – Mid-term goals are priorities that can be accomplished within two to five years.
    – What are you saving for long term? What do you want to accomplish in the next 5 to 10 years? Long-term financial goals are priorities that may take more than five years to accomplish. Most long-term goals require investing.
    It’s easy to talk about goals in general, but get really specific and write them down. Which goals are most important to you? Identifying, prioritizing and aligning your goals with your values, your goals will act as a motivator as you dig into your financial details.
  3. Create a net worth statement
    Achieving your goals requires understanding where you stand today. So start with what you have.
    – First, make a list of all your assets—things like bank and investment accounts, real estate and valuable personal property.
    – Now make a list of all your debts: mortgage, credit cards, student loans—everything.
    – Next, subtract your liabilities from your assets and you have your net worth.
    If you’re in the plus, great. If you’re in the minus, that’s not at all uncommon for those just starting out, but it does point out that you have some work to do. But whatever it is, you can use this number as a benchmark against which you can measure your progress.
  4. Know your cash flow
    Cash flow simply means money in (your income) and money out (your expenses). It will show you if you’re spending more or less than you earn.
    – How much money do you earn each month? Be sure to include all sources of income.
    – Now look at what you spend each month, including any expenses that may only come up once or twice a year. Do you consistently overspend? How much are you saving? Do you often have extra cash you could direct toward your goals?
  5. Your budget and manage your expenses
    “A budget is telling your money where to go instead of wondering where it went.” John C. Maxwell
    For most people, financial success depend solely on how much they spend. This, it is important to find out where your money is going. Your budget will let you know how you’re spending.
    – Write down your essential expenses such as mortgage, insurance, food, transportation, utilities and loan payments. Don’t forget irregular and periodic big-ticket items such as vehicle repair or replacement costs, out of pocket health care costs and real estate taxes.
    – Then write down nonessentials—restaurants, entertainment, even clothes.
    Does your income easily cover all of this? Are savings a part of your monthly budget? Examining your expenses helps you plan and budget when you’re building an emergency fund. It will also help you determine if what you’re spending money on lines up with what is most important to you.
  6. Start (or build up) your emergency fund.
    Building a strong financial foundation starts with saving for emergencies. When you have a safety net for unexpected expenses, you don’t have to worry about throwing your budget out of whack. You can be confident that you’re ready for a car breakdown, home repairs, medical expenses or other emergencies that pop up. It’s OK to start small—saving $50 in an account you’ve designated for emergencies is a good starting point. You might work up to saving $1,000 and then eventually aim to save enough to cover three to six months’ worth of living expenses in an emergency fund. An emergency fund is essential because you need to absorb life’s surprises without making things worse. Without a stash of cash, you may have to take on debt for unexpected car troubles or surprise medical expenses. And, the fund can be kept in a savings account kept separate from your regular checking account. It’s not an account that should be dipped into often — unless there’s an emergency.
    If you already have an emergency fund, consider giving it a boost. An emergency fund should consist of three to six months’ worth of expenses, which is a different different amount for everyone. If you don’t think you’d survive financially if you missed a paycheck, then your an ideal candidate for needing an emergency fund.
  7. Focus on debt management
    Debt can derail you, but not all debt is bad. Yet, freedom from debt is an achievable goal for everyone.
    Some debt, like a mortgage, can work in your favor provided that you’re not overextended. It’s high-interest consumer debt like credit cards that you want to avoid. Try to follow the 28/36 guideline suggesting no more than 28 percent of pre-tax income goes toward home debt, no more than 36 percent toward all debt. Look at each specific debt to decide when and how you’ll systematically pay it down. Do you know how much debt you currently have (credit cards, student loans, auto loans, mortgage, etc.) and how long it will take to pay off each debt at your current rate of payment? It’s important to make a long-term plan for debt repayment so you can focus your efforts on the most efficient ways to reduce your debt. This might include tackling high-interest rate debts first or loan consolidation. Create a running list of all your loan balances and interest rates so you can see where you stand today and identify ways to make a dent in your debt. For example, you might make extra payments on your loan with the highest interest rate. A financial advisor can help you review your debt and create a debt elimination plan. Use our Debt Roll-Down Calculator to find the best way to pay off your credit cards.
    If you’ve been struggling with old debt, such as credit cards, student loans or medical bills, now is the time to pay them off for good. If you’re not sure which debt to pay off first, consider the one with the highest interest. High-interest debt, like credit cards, can compound through hefty interest charges, late fees and other penalties. pay down the principal of your student loan. The sooner you pay it all off, the less burden you carry.
  8. Get your (retirement) savings and investing on track by paying yourself first
    Whatever your age, retirement saving needs to be part of your financial plan. The earlier you start, the less you’ll likely have to save each year. You might be surprised by just how much you’ll need—especially when you factor in healthcare costs. But if you begin saving early, you may be surprised to find that even a little bit over time can make a big difference.
    Spending time today to plan your path to retirement can provide you peace of mind in the future. Getting started is the most important step you can take—it’s never too early or too late to save for retirement! The key is to continue saving consistently and make retirement savings a priority in your budget. Individual retirement accounts (IRAs) and employer-sponsored retirement plans, such as 401(k)s, offer tax benefits that can help your savings grow faster. As you near retirement, you’ll want to set a strategy for tapping retirement assets.
    Your financial plan should outline your retirement savings goals and ways to boost your savings (e.g., increasing your contributions every year or when you get a bonus or raise). Run the numbers using our Retirement Planner Calculator or review your retirement plans with a financial advisor.
    Calculate how much you will need and contribute to a 401(k) or other employer-sponsored plan (at least enough to capture an employer match) or an IRA. Save what you can and gradually try and increase your savings rate as your earnings increase. Whatever you do, don’t put it off.
    And, make the savings a priority by paying yourself first. This means that instead of saving what remains after paying your monthly expenses, individuals should pay themselves first by setting aside at least 10% to 15% of their monthly income as their first expense, and then pay the rest of their monthly expenses. Paying yourself means that your savings and other financial goals are taken care of before you allow yourself to spend money on less important items.
  9. College Savings.
    Parents and guardians face the challenge of balancing multiple financial demands, including your own retirement and future health care costs as well as education expenses for your dependents. Having a financial plan helps ensure you’re taking the right steps to address all areas of your financial life. Choosing the right college savings vehicle and planning ahead to take advantage of financial aid, loans and scholarships can help make college more affordable.
    Determine how much you want to save for college and the best way to grow your savings. Our College Savings Calculator can help you estimate how much you’ll need to save.
  10. Stay invested in the market for the long-term and check-in with your portfolio regularly.
    If you’re confident in your financial life plan and investment strategy, leaving your investments alone during short-term market corrections and Bear markets could help you accumulate wealth over the long-term and help ensure your retirement nest egg.
    When was the last time you took a close look at your portfolio? There are no guarantees when it comes to investing, but it seems that fear and uncertainty tends to put investors on the sidelines when markets plunge and become highly volatile.
    Markets go up and go down down in the short-term which can have a real effect on the relative percentage of stocks and bonds you own—even when you do nothing. And even an up market can throw your portfolio out of alignment with your feelings about risk. Don’t be complacent. Review and rebalance on at least an annual basis.
  11. Make sure you’re adequately insured
    Having adequate insurance is an important part of protecting your finances and family. Insurance is essential to protect your family and your financial future. Having health insurance, auto insurance and homeowners or renters insurance protects you when you need it. You may consider options for life and disability insurance, which can help protect your family’s finances if something happens to you. Review your insurance coverage and beneficiaries, especially if you’ve had any major changes in your family and life. A total risk assessment with an insurance professional can make sure you have the right level of coverage.
    We all need health insurance, and most of us also need car and homeowner’s or renter’s insurance. While you’re working, disability insurance helps protect your future earnings and ability to save. You might also want a supplemental umbrella policy based on your occupation and net worth. Finally, you should consider life insurance, especially if you have dependents. Review your policies to make sure you have the right type and amount of coverage. You never know what the future may hold—but it helps to be prepared for anything. What if you or a loved one experienced major medical issues or needed assisted living or nursing home care? Making decisions about long-term care can be stressful and emotionally difficult, and the costs can drain your family’s finances.
    You may want to explore options for long-term care insurance to help pay for long-term care needs such as nursing home care. You may also decide to write an advance care directive regarding your wishes for medical care and name a power of attorney to make financial decisions on your behalf if you’re unable to do so.
  12. Know your income tax rate
    Taxes are one of the most insidious destroyers of wealth, along with debt. You should make sure you’re prepared for the annual tax season and review your withholding, estimated taxes and any tax credits you may have qualified for in the past. The IRS has provided tips and information; take advantage of tax deferred accounts like IRAs and 401(k)s can help you save money on taxes and accumulate wealth more efficiently.
  13. Create or update your will and estate plan
    At the minimum, have a will—especially to name a guardian for minor children. Also check that beneficiaries on your retirement accounts and insurance policies are up-to-date. Complete an advance healthcare directive and assign powers of attorney for both finances and healthcare. Medical directive forms are sometimes available online or from your doctor or hospital. Working with an estate planning attorney is recommended to help you plan for complex situations and if you need more help.
  14. Invest in yourself and continue to learn
    “An investment in knowledge pays the best interest.” Benjamin Franklin
    While college is a great self-investment, there are other ways you can invest in yourself. Consider taking courses in a field or industry you’re interested in pursuing.
    If you’ve been contemplating a career change, use your money to invest in that switch. If you need capital to start your own business, this could be your chance. Also consider using it to give yourself a much-needed break. Whether this is a vacation fund or simply money for a massage or spa day to recharge, reset and refocus. Focused on what would improve your well-being in the long-term, not a quick fix. Continuous learning and growth are the key.
  15. Three Pillars (financial wealth, physical health and emotional well-being)
    Financial assets like stocks, bonds and real estate are forms of personal wealth. However, Americans need to also focus their attention on staying emotionally and physically healthy. Self-care is paramount in all three facets of life which include financial wealth, physical health and emotional well-being. Eating a balanced diet, exercising, getting enough sleep and connecting regularly with family and friends, are essential to live a purposeful and fulfilling life.
  • Take control of your future with a financial plan for the next five, ten or more years.
  • Insurance Protection. Ensure you have adequate Medical insurance and consider purchasing Long-Term Care insurance.

References:

  1. https://www.brownleeglobal.com/financial-life-planning/?preview=true&frame-nonce=60592dd178
  2. https://www.schwab.com/resource-center/insights/content/10-steps-to-diy-financial-plan?SM=uro#sf228155652
  3. https://www.cnet.com/personal-finance/how-to-invest-your-tax-refund/
  4. https://www.moneymanagement.org/credit-counseling/resources/financial-literacy-month

Focus and Mindset

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“Anything is possible if you have the mindset and the will and desire to do it and put the time in.” Roger Clemens

Financial mindset consists of a predetermined set of beliefs, thoughts, habits and behaviors an individual has about saving by paying yourself first, investing for the long-term and accumulating wealth for financial well-being.

Every person has a set of beliefs, thoughts, habits and behaviors about money and personal finance. Even if they can’t express what their thoughts and mindset are, they still exist subconsciously. By observing your own financial outcomes, you can begin to better understand your financial mindset, behaviors and habits.

Without a positive financial mindset, it is difficult to develop the good financial habits and behaviors that will be necessary to lead to an improved financial outcome and well-being.

A positive financial mindset means knowing that if you just hang in there long enough, things will work out financially with the correct financial habits and behaviors. Even if you partake in one positive action each day, your confidence and belief will grow, along with your wallet.

Focus and Thoughts

“If you’re trying to achieve, there will be roadblocks. I’ve had them; everybody has had them. But obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” Michael Jordan

Mindset is basically about your thoughts and a harbinger of what you focus on in the short and long term.

When you focus a thing, be it positive or negative, your mind has a tendency to heighten your attention on that thought. As a result, by focusing on one thing, such as the fear and uncertainty caused by the COVID-19 pandemic, you have a tendency to miss other things good and positive happening around you. Essentially, your focus becomes the filter in which you observe your world.

Focus on opportunities

“No matter how dark things seem to be or actually are, raise your sights and see the possibilities, always see them, for they’re always there.” Norman Vincent Peale

This too will pass is a common refrain worth remembering in trying times like these created by the pandemic. History and good old common sense tells us that crises always come to an end and this COVID-19 will be no different.

We can control our thoughts, mindset and where we focus our attention. Thus, it behooves us to focus our thoughts on those things we can control and to think about what we need to do now, in the short term, to survive the current storm and prepare our paths for future opportunities and better days.

It’s about doing things now, in the downtime, in order to be prepared and prime to operate in the uptime. It is about laying the groundwork for tomorrow’s long-term financial success during today’s challenging times.

By focusing on the negative and on things outside our control, we can miss the other things and opportunities happening around us.

Positive Attitude

“Our attitude toward life determines life’s attitude towards us.” John N. Mitchell

Nothing is going to change in your life unless you change a negative attitude and mindset. And, you can change your life almost immediately if you can change your attitude and mindset. Many have said that, “A bad attitude is like a flat tire. If you don’t change it, you’ll never go anywhere.”

Furthermore, John N. Mitchell said it best when he said that, “Our attitude toward life determines life’s attitude towards us.” We’ve all heard about the power of our attitude, and that it’s our attitude can determine the altitude of your success in life.

References:

  1. https://www.verywellmind.com/what-is-a-mindset-2795025
  2. https://www.cnbc.com/2020/04/30/why-you-should-create-a-daily-money-mindfulness-practice.html
  3. https://graciousquotes.com/norman-vincent-peale/

Mindset and the Power of Our

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“We are what we think. All that we are arises with our thoughts. With our thoughts, we make our world.” Gautama Buddha

Your mind is very powerful. The way you think and believe about yourself turns into your reality. If you draw inaccurate conclusions about who you are and what you’re capable of doing, you’ll limit your potential.

Link Between Thoughts, Beliefs, Feelings and Behavior

Each one of us has the power to create a reality of our choosing through our thoughts. What you think about and focus on directly influences how you feel and how you behave, according to Amy Morin, a psychotherapist and the international bestselling author of 13 Things Mentally Strong People Don’t Do. For example, if you think you’re a failure, you’ll feel like a failure. Then, you’ll act like a failure, which reinforces your belief that you must be a failure.

https://twitter.com/iamjallal/status/1297345759885443072?s=21

Once you draw a conclusion about yourself, you’re likely to do two things;

  • Look for evidence that reinforces your belief and
  • Discount anything that runs contrary to your belief.

It might not be your lack of talent or lack of skills that are holding you back. Instead, it might be your beliefs that keep you from performing at your peak.

Creating a more positive outlook can lead to better outcomes in your personal life and professional career. And, harboring optimistic thoughts  can lead to productive behavior, which increases your chances of a successful outcome.

Change your thoughts, beliefs and behaviors

The good news is that you can change how you think with deliberate practice and effort. You can alter your perception and change your life for the better.

According to Morin, you can alter your perception and change your life by challenging your thoughts and beliefs:

  • Look for evidence to the contrary. Acknowledge exceptions to the rule will remind you that your belief isn’t always true.
  • Challenge your beliefs. Perform behavioral experiments that test how true your beliefs really are. If you think you’re not good enough, do something that helps you to feel worthy. Step outside of your comfort zone, force yourself to do something that feels a little uncomfortable.

With deliberate practice and effort, you can train your brain to think differently and eliminate those self-limiting thoughts and beliefs.

Deep breathing is incredibly beneficial in finding inner peace.

  • Breathe in and out deeply for one minute
  • Hold your breath for four seconds
  • Breathe out

This simple technique will bring about inner peace. Try it out for yourself and see the results.

References:

  1. https://www.forbes.com/sites/amymorin/2016/06/15/this-is-how-your-thoughts-become-your-reality/?sh=1dd1728528a0
  2. https://www.shift.is/2019/07/proof-that-our-thoughts-create-reality/

Psychosocial Health

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It’s important that you choose to be happy, healthy and at peace!

Health is defined as the overall mental, emotional and physical state of a person; the absence of disease and ailment. On the other hand, wellness or well-being refers to the state of being in optimal mental and physical health.

But wellness is more than optimal mental, emotional and physical health. It’s about living a life in harmony, full of personal responsibility and taking proactive steps for one’s entire well-being. Thus, a person living life very well controls risk factors that can harm them. Risk factors are different types of actions or conditions that increase a person’s chances for illness or injury.

Psychosocial (mental, emotional, social, and spiritual) health and wellness

“The secret of a better and more successful life is to cast out those old dead unhealthy thoughts.” Dr. Norman Vincent Peale

Psychosocial health includes four important components of well-being. It means being mentally, emotionally, socially, and spiritually sound which fortunately is no longer lost on traditional modern medicine. There’s plenty of proof that a healthy mind, content heart and grateful attitude are just as important for the prevention of diseases and therapeutic treatment. Therefore, this concept of psychosocial health, a state of mental, emotional, social, and spiritual well-being, deserves much attention and additional research.

Basic Traits of Psychosocial Health

“The greatest revolution of our generation is the discovery that human beings, by changing the inner attitudes of their minds, can change the outer aspects of their lives.” William James

Individuals who are deemed to be psychosocially healthy aren’t completely devoid of problems. Actually, it’s not the quantity or quality of a problem, which makes someone sound in this respect. It’s the way people view themselves and how they view and response to stressful situations that sets psychosocially healthy people apart from those who are not. Here are just a few traits shared by these robust individuals. They:

  • Like themselves
  • Accept their mistakes
  • Take care of themselves
  • Have empathy for others
  • Control their anger, hate, tension, and anxiety
  • Are optimistic
  • Can work alone and with others equally well

Mental Health

“To make your mind healthy, you must feed it nourishing, wholesome thoughts.” Dr. Norman Vincent Peale

The thinking portion of psychosocial health is known as mental health. Your beliefs and values in life, as well as how you relate to others and respond to situations in your life, are a reflection of mental health, which overlaps with the other aspect of health.

When something happens to you that you don’t like and you respond in a positive manner by accepting your mistake and looking forward to its correction, then that’s good. But if you show up late for work regularly, get fired, and then blame anyone but yourself, then that may be an indicator of less than ideal mental and emotional health.

Emotional Health

The feeling part of psychosocial health is called emotional health. This includes things like anger, love, hate, and happiness. Oftentimes, emotional and mental health overlap a great deal in some situations. Going back to our example of getting fired from work because you came in late multiple time, if you feel a bit down, but still have high hopes for the future, that’s a positive thing. But if you lash out in a blinding rage against your boss, sulk when you go home, and avoid everyone thereafter, then that may point to improper emotional health.

Furthermore, it’s not unexpected even for an emotionally healthy person to experience some sadness and grief after getting fired; that by itself isn’t conclusive of poor emotional health. Everyone, even the most optimistic people, have their ups and downs. But an emotionally healthy person is one that responds to a situation in a manner that is controllable, in proportion, and with understanding.

Emotional intelligence is an ability to understand and manage your emotions and those of others. It can be broken up into five main parts:

  • Know your emotions: Are you able to quickly recognize your feelings?
  • Manage your emotions: Can you express those feelings appropriately? Are you able to cope with them well?
  • Motivate yourself: The more you can do this independently in order to achieve more in your life, the higher your emotional intelligence.
  • Recognize the emotions of others: The more you can empathize with others, the better.
  • Handle your relationships: The better you are at navigating conflict in life and building a good social network, the higher your emotional intelligence.

Social Health

Having healthy relationships is a good way to also introduce social health, the ability to create and maintain healthy relationships with others. I’m sure you can already appreciate how much this is related to the concepts we went over in emotional health. Everything here is related because they are all part of the one overarching concept – psychosocial health.

Social health goes beyond having appropriate emotional health and intelligence. A person with good social health:

  • Recognizes the importance of social engagement. We’re pack animals after all! We’re not supposed to live alone!
  • A person with good social health is able to support their friends in a time of need and ask for their help when they need it themselves.
  • They aren’t biased, prejudiced, racist, or sexist.
  • Listens to others well, expresses their feelings just as well, and acts in a responsible manner around others.

An example of a person with good social health is someone who has close friends. They enjoy listening to and feels close enough to share important feelings with. The contrast is a curmudgeon who is bad-tempered and discourages close personal relationships.

Spiritual Health

When you enhance your spirituality, you form a relationship built on inner peace, love, faith and security.

Spiritual health is about having “something more” in your life. In practical terms, we’re talking about getting to know yourself—getting to know what you’re feeling, what you’re thinking, what you’re intending, what your fears are, and what your loves are, according to Gary Zukav author of Seat of the Soul.

Relationships can transform into a spiritual connection and partnership. If we use our relationships with ourselves, others and God (or an entity that is transcendent) to make us wiser, kinder, peaceful, grateful and more compassionate, we can actually change how the relationships work for us. We can have and enjoy the relationships and lives we’ve always dreamed of.

Higher levels of spirituality have also been linked to increased compassion, strengthened relationships, and improved self-esteem. “Our findings show that spirituality is significantly associated with better mental health and well-being and may add to an individual’s overall wisdom,” explains Dilip Jeste, senior associate dean for the Center of Healthy Aging and a professor of psychiatry and neuroscience at the UC San Diego School of Medicine. “Spirituality does not require religious faith but is characterized by humility and ever-present connectedness to oneself or to others or to an entity that is transcendent, such as Mother Nature or God or the soul. It helps reduce stress in many people and allows them to be more at peace, happier, and healthier.”

References:

  1. https://study.com/academy/lesson/what-is-psychosocial-health-definition-components-traits.html
  2. https://www.oprah.com/oprahshow/forging-a-spiritual-relationship/all
  3. https://www.psychologytoday.com/us/blog/the-athletes-way/202010/how-spirituality-wisdom-and-mental-health-are-intertwined
  4. https://www.forbes.com/sites/amymorin/2016/06/15/this-is-how-your-thoughts-become-your-reality/?sh=1dd1728528a0

Background:

Physical wellness: This means we exercise, eat well, practice safe sex, don’t do any dangerous activities like jumping off of buildings, and so on. Physical fitness increases physical wellness. By being physically fit and well, you are better able to take care of yourself and others, especially in a time of need. You are also better able to prevent illness and disease.

Intellectual wellness: Critical thinking, being curious, and always learning new things. Developing intellectual wellness is critical not only to help a person grow in school and do better at work, but it actually prevents the onset of disease. It’s been shown that people who regularly learn new things and challenge their mind can stave off many mental health problems.

Emotional wellness: Being confident, having a solid self-esteem, building trust, and being able to understand another’s feelings. A person who is emotionally well is aware of their feelings and is able to properly cope with them. Emotional wellness also implies a person can deal well with stressful situations.

Social wellness: Having good communication skills, the ability to establish good and healthy long-term relationships, and having good relationships with family and friends. Interpersonal relationships are very important in order to maintain a good emotional and physical state of being. We are, of course, ‘pack animals,’ so to speak, that depend on one another to survive and live well.

Spiritual wellness: The path to a spiritual wellness and relationship depends upon you because how you relate to yourself determines how spiritual you are toward others, according to Deepak Chopra. Developing compassion, forgiveness, being caring, having a sense of purpose and meaning in life. Spiritual wellness doesn’t automatically imply the need for religion in a person’s life. But, it does imply a personal relationship with God or committing to something higher. This personal relationship or commitment to something higher can be developed and found through things like nature, meditation, volunteer work, and family.

Mahatma Gandhi:

  1. You must be the change you wish to see in the world.
  2. Happiness is when what you think, what you say, and what you do are in harmony.
  3. Live as if you were to die tomorrow. Learn as if you were to live forever.
  4. Keep your thoughts positive because your thoughts become your words. Keep your words positive because your words become your behavior. Keep your behavior positive because your behavior becomes your habits. Keep your habits positive because your habits become your values. Keep your values positive because your values become your destiny.

References:

  1. https://www.chopra.com/articles/how-to-have-a-true-spiritual-relationship

A Powerful Attribute for Success: Mindset

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Act in spite of fear!
 

Failure is a necessary evil on the road to success.

Your mindset is probably holding you back from creating the abundant life you dream and desire. Your mindset is your collection of thoughts and beliefs that shape your thought and habits.  And your thoughts and habits affect how you think, what you feel, and what you do.  Your mindset impacts how you make sense of the world, and how you make sense of yourself.

‘The 2% Mindset’.

“Adapting a growth mindset means recognizing that success is not about avoiding failures, but rather about embracing them, taking on challenges, and not giving up.” James Clear.

With a 2% or growth mindset, people believe that their most basic abilities and skills can be developed through dedication, deliberate practice, effort and hard work. This view of mindset creates a love of learning, growing and a resilience that is essential for success.

“To live is the rarest thing in the world. Most people exist, that is all.” Oscar Wilde

It’s postulated that only 2% of the population go for their dreams with confidence and excitement. They make a conscious decision to live “outside the box”.  They have the confidence to live a life of adventure and are willing to go for their dreams….the bigger the better. 

Only 2% of the population choose happiness and fulfillment. Only 2% of the population get the most out of life by exploring new things and embracing the unknown. Only 2% of the population live life without limits and act in spite of fear. In other words, only 2% of the population live a life beyond their comfort zone.

To achieve this mindset, you must actively change your way of thinking. You must act in spite of the fear. Rather than fear the unknown these 2% embrace the unknown.  Change is something to be embraced, as well, and they seek it with gusto.  The 2% have been able to embody an abundance mindset, not merely as a concept but as a way of being.  A life of contentment and fulfillment is their ultimate prize.

The remaining 98% of the population

The majority of the people (98%) in this world make a conscious decision to live in a comfort zone of their own making. They remain in their comfort zone and are content with just getting by. This zone is a place that is easy, routine, and secure.  It is easy to be like everyone else as it helps keep fear at bay.

98% of the population live their lives playing it safe, doing the right things and save themselves for some future event that never happens. 98% of the population enjoy being like everyone else and simply let life push them into submission because they have no guts. Deep down inside they are fearful and terrified of taking risks and end up settling for less. They really want to succeed, but the fear of losing is greater than the excitement of succeeding. 98% of the population will look back one day and know that deep down inside they didn’t go for it.

“Success occurs when your dreams get bigger than your excuses.” Anonymous

Fear, a powerful teacher.

The fear of failure is preventing you from realizing your true potential. It stops you from going for your dreams, be that public speaking, or maybe starting your own business. Most people wished that they had honored even a half of their dreams and had died knowing that it was due to choices they had made, or not made. But, “you need to fail, learn how to fail and condition yourself to fail” in order to find success, according to Tim Ferris.

Where there is uncertainty and fear, it’s easy to stay in your comfort zone and not face the unknowns. You experience resistance. Resistance is fueled by fear. And you feel fear because you don’t know what you don’t know and so you make up stories.

It’s important to embrace the unknown; find out how truly exiting and reinvigorating it can be. Live without limits, and enjoy exploring new things.

Regrets of the dying:

“Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. All fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important.” Steve Jobs

Bonnie Ware, an Australian palliative nurse, counseled the dying in their last days and recorded their most common regrets. In her book The Top Five Regrets of the Dying – A Life Transformed by the Dearly Departing, she shared the top five regrets of the dying:

  1. I wish I’d had the courage to live a life true to myself, not the life others expected of me.
  2. I wish I hadn’t worked so hard.
  3. I wish I’d had the courage to express my feelings.
  4. I wish I had stayed in touch with my friends.
  5. I wish that I had allowed myself to be happier.

Take these five wishes of the dying to heart and avoid living a life full of regrets and unrealized dreams. Mark Twin said it best: “Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream.”

“Health brings a freedom very few realise, until they no longer have it.” Bonnie Ware

References:

  1. http://sourcesofinsight.com/what-is-mindset/
  2. http://www.amazon.com/exec/obidos/ASIN/B000FCKPHG/thbosh-20/
  3. https://www.cnbc.com/2017/08/07/how-overcoming-the-fear-of-failure-helped-steve-jobs-and-bill-gates.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Message
  4. https://www.inc.com/tom-popomaronis/only-2-percent-of-world-embraces-these-11-risky-mindsets-heres-why-everyone-else-doesnt-but-should.html
  5. https://bronnieware.com/blog/regrets-of-the-dying/
  6. https://substanceeducation.com/2015/05/23/a-2-mindset/

Healthy Aging and Lifestyle: Happiness and Gratitude

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Gratitude is the expression of appreciation for what one has.

Attitude of Gratitude and why gratitude sprouts happiness

“The Grass is Always Greener on the Other Side” refers individuals who are not satisfied with their own lot in life and always assumes that there are better things in other places. This view appears to be a common human quality of always wanting something different than what you have. It assumes that your neighbor’s yard ( or circumstance) is greener (or more desirable) than yours, when, in reality, they are the same or your neighbor is actually coveting what you have.

“The grass is greener” expresses the idea that people often think a different set of circumstances would bring them greater happiness and joy in life; however, the phrase is often used in the context of reminding people that this is not usually the case. A more apt phrase is “the grass is greener where you water it., ” suggesting that good situations come from the energy you put into them, not from dreaming about them.

Developing an attitude of gratitude means that over time, gratitude can boost happiness and fosters both mental and psychological health, even among those already struggling with mental and physical health problems.

According to Psychology Today, “Gratitude is about feeling and expressing appreciation: for all we’ve received, all that we have (however little it may be), and for all that has not befallen us.” Studies show that practicing gratitude curbs the use of words expressing negative emotions and shifts inner attention away from such negative emotions as resentment and envy, minimizing the possibility of ruminating, which is a hallmark of depression.

Gratitude is a key tenet in all major philosophies and religions. That’s because gratitude is the foundation of happiness. We only have a limited amount of focus, so when you are able to be appreciative of what you have, your brain is unable to give life and energy to thoughts about what you don’t have. Seeing events in your life as gifts allow you to perceive how they may help you grow and become a better person, and the application of this attitude during tough times is the hallmark of resilience.

“Our happiness depends on the habit of mind we cultivate. So practice happy thinking every day. Cultivate the merry heart, develop the happiness habit, and life will become a continual feast.”

“Studies show that people can deliberately cultivate gratitude—and there are important social and personal benefits to doing so. It is possible to feel grateful for loved ones, colleagues, animals, nature, and life in general. The emotion generates a climate of positivity that both reaches inward and extends outward.” Norman Vincent Peale

Happiness is arguably one of the most important goals in life.

“Happiness has to do with your mindset, not with outside circumstance.” Steve Maraboli, Life, the Truth, and Being Free

“Happiness is best described as coming from between — that is if you get the right kind of relationship between yourself and other people, yourself and your work, and yourself and something larger than yourself… if you get those three relationships right … it will draw you out into the world, it will engage your passions, it will give you the kind of support that you need and want and it’ll give you a sense of meaning and purpose in life,” according to happiness expert Jonathan Haidt, the Thomas Cooley Professor of Ethical Leadership, based in the Business and Society Program at New York University.

“Money never made a man happy yet, nor will it. There is nothing in its nature to produce happiness. The more a man has, the more he wants. Instead of its filling a vacuum, it makes one.” Benjamin Franklin

What makes a person feel happy and grateful depends on the person and the degree to which we are inclined to experience and express gratitude. It can be something as simple as a call from a friend or a pleasant evening dinner with family. Engaging in a more specific act and how we think about an act, such as volunteering your time and talent to help others, can make people feel good about themselves.

“It isn’t what you have or who you are or where you are or what you are doing that makes you happy or unhappy. It is what you think about it.” Dale Carnegie, How to Win Friends and Influence People

Tips to Foster Gratitude

  • Keep a journal of or in some way note big and little joys of daily life.
  • Write down daily “three good things”—identify three things that have gone well for you and identify the cause.
  • Write thank-you notes to others.
  • Think about people who have inspired you and what about them was most significant.
  • Engage in “mental subtraction.” Imagine what your life would be like if some positive event had not occurred.

“Gratitude is the appreciation of things that are not deserved, earned or demanded – those wonderful things that we take for granted.” – Renée Paule

Learning to be thankful and regularly expressing gratitude is an important part of personal happiness. Being thankful gives us an appreciation for what we have.

  1. https://www.cnbc.com/2019/04/11/nyus-jonathan-haidt-formula-for-lasting-happiness-and-purpose.html?__source=facebook%7Cmain
  2. https://www.psychologytoday.com/us/blog/some-assembly-required/201411/the-benefits-cultivating-attitude-gratitude
  3. https://www.psychologytoday.com/us/basics/gratitude

Wells Fargo’s CEO believes there is a Limited Pool of Black Executive Talent

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“The more things change, the more they stay the same.”  Alphonse Karr

What a classic example demonstrated by a major U.S. financial institution of the quote “the more things change, the more they stay the same”.  The saying is a reference to situations where there appears to be a meaningful change, but many underlying fundamentals are still the same.

Recently, Charlie Scharf, Wells Fargo’s CEO, wrote in a June memo to employees, “While it might sound like an excuse, the unfortunate reality is that there is a very limited pool of Black to recruit from,” according to Reuters. Scharf also repeated this claim in a Zoom meeting over the summer, exasperating Black employees.

According to the Washington Post, less than 5 percent of those holding senior executive positions at Wells Fargo in 2018, a year before Scharf became chief executive officer, were Black.

Committing to diversity and inclusion shouldn’t just be a marketing ploy; it should just be who you are.

Like Wells Fargo, many corporations have released marketing statements committing to change and to the elimination of structural racism and racial inequality. But, they have not released comprehensive data on the racial diversity of their employees and in leadership positions to the public. Regrettably, we must assume that many CEOs harbor similar shortsighted beliefs, and they continue to embrace the excuse that there exist a paucity of Black executive talent in America.

“We value and promote diversity and inclusion in every aspect of our business and at every level of our organization” Wells Fargo’s Diversity and Inclusion Policy

Although Scharf apologized profusely for his bonehead remarks and commented that his remarks reflected his “own unconscious bias”, we must asks whether his beliefs, which one must assume is also the company’s mindset, have actually changed.

“The point isn’t to get people to accept that they have biases, but to get them to see [for themselves] that those biases have negative consequences for others.” — Theresa McHenry, HR Director at Microsoft UK

“Wells Fargo is badly broken in multiple ways and that starts at the top,” Senator Elizabeth Warren commented. “Its CEO has an unfathomable blind spot about how and why this giant bank fails to hire, promote, and fairly compensate Black talent.”

Consequently, it’s difficult to argue against Senator Warren’s point. Since, the primary benefit of hiring from a racially and gender diverse talent pool is that it immediately expands the depth of the pool and increases your chances of hiring the best executive talent.

References:

  1. https://www.businessinsider.com/aoc-sherrod-brown-criticize-wells-fargo-ceo-scharf-black-talent-2020-9
  2. https://www.msn.com/en-us/news/politics/wells-fargo-ceo-issues-apology-after-saying-there-was-a-limited-pool-of-black-talent/ar-BB19mize?ocid=uxbndlbing

America’s Mental Health Epidemic

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“Be sure to give each other a lot of grace and be kind and forgiving to each other. We’re all experiencing heightened levels of uncertainty and anxiety right now. Giving an extra beat of patience to others is critical.” Dani Fallin, chair of the Department of Mental Health at the Johns Hopkins Bloomberg School of Public Health

The mental health impact of COVID-19 are real, widespread and growing exponentially. The immense stress and emotional trauma experienced by vulnerable individuals, families and households amid the pandemic has given rise to an unprecedented mental-health crisis. Additionally, there’s strong evidence showing that social isolation and distancing can increase symptoms of mental illnesses like depression and anxiety.

Data is staggering

The latest data reveals some of the most frightening and staggering spikes in anxiety, depression, substance use, drug overdose and suicide rates that behavioral-health experts have ever witnessed, according to Babette Hankey, president/CEO of Aspire Health Partners in Orlando.

A recent survey by the Centers for Disease Control and Prevention on adult mental health found that more than 40% of U.S. adults have reported at least one mental health issue during this pandemic, and more than 1 in 10 adults had seriously considered suicide. During this period, 7 out of 10 young adults (18-24 years old) reported experiencing symptoms of anxiety and depression and more than 25% have seriously considered suicide.

In the wake of the coronavirus COVID-19 outbreak, many people may feel anxiety or stress.

Everyone responses differently

Everyone reacts differently to stressful situations such as the seemingly enduring COVID-19 pandemic infectious disease outbreak. It is normal to experience a wide range of emotions. Yet, it’s important for people to take care of themselves physically, emotionally, and mentally.

According to the CDC study, the rate of substance abuse and/or suicidal thoughts among unpaid caregivers more than tripled between May and the end of June.

Older Americans appear to be more resilient to the strain of the pandemic compared to the young: The study found rates of anxiety, depression, substance abuse and suicidal thoughts were most prevalent among those aged 18 to 24, and the prevalence of these issues “decreased progressively with age.”

Black and Hispanic Americans tended to have higher rates of mental health issues tied to the pandemic than did whites, the study also found.

Of course, unemployment or the threat of it is a major source of anxiety for millions in 2020. So, efforts aimed at “strengthening economic supports to reduce financial strain” should be part of an effort to boost mental health, the researchers said.

According to the CDC, reactions during the outbreak can include:

  • Fear and worry about your health status and that of your loved ones who may have been exposed to COVID-19.
  • Increase levels of stress, anxiety, hopelessness and depression.
  • Changes in sleep or eating patterns.
  • Difficulty sleeping or concentrating.
  • Worsening of chronic health problems.
  • Increased use of alcohol, tobacco, or other drugs.

Learning to cope with anxiety and stress

Figuring out ways to cope with anxiety and stress can help you, your loved ones and your community. If stress begins to interfere with your daily life, reach out to your healthcare provider.

These numbers, although startling, are unsurprising to mental health experts given the emotionally taxing measures local and state governments have taken to reduce the spread of the virus: children and grandchildren have been separated from their parents and grandparents; students are prevented from attending school; and the sick and dying have been denied the embrace of loved ones.

During this unique moment in the nation’s history, American society and economy have slowed down, we’re experiencing unprecedented social unrest and political rancor, and, many have been left feeling powerless and uncertain about their physical health and financial wellbeing as well as that of their loved ones.

https://youtu.be/60kGONUJSRY

The importance of self-care during this challenging time.

“Seek out ways to have social and professional engagement while adhering to social distancing…can help people feel connected socially with their colleagues, family, and friends, and maintain a sense of belonging.” Dani Fallin, chair of the Department of Mental Health at the Johns Hopkins Bloomberg School of Public Health

  • Avoid excessive exposure to media coverage of COVID-19. Be aware and conscious of your news and media intake. The more time you spend consuming news about the pandemic, the more likely you are to feel anxious and concerned. That’s especially true at home, when you’re able to access news media 24/7.
  • Take care of your body. Take deep breaths, stretch or meditate. Eat healthy, well-balanced meals, exercise regularly, get plenty of sleep and avoid alcohol, smoking and drugs.
  • Make time to unwind and remind yourself that strong feelings will fade. Take breaks from watching, reading, or listening to news stories. It can be upsetting to hear about the crisis and see images repeatedly. Try to do some other activities you enjoy to return to your healthy life.
  • Learn a new hobby or skill like gardening, a foreign language or a musical instrument. Devote yourself to learning and growing everyday.
  • Connect with others. Share your concerns and how you are feeling with a friend or family member. Maintain healthy relationships.
  • Maintain a sense of hope that “this too shall pass” and maintain positive outlook and thinking. Have faith in your inherent resilience to persevere and overcome life’s extraordinary challenges brought on by the pandemic.

Take care of your mental health

Mental health is an important part of overall physical health and emotional wellbeing. It affects how we think, feel, and act. It may also affect how we handle stress, relate to others, and make choices during uncertain situations or an emergency.

Again, we stress to contact your healthcare provider if you think you have new or worsening mental health symptoms or stress (or anxiety) gets in the way of your daily activities for consecutive days.

References:

  1. https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/managing-stress-anxiety.html
  2. https://www.orlandosentinel.com/opinion/guest-commentary/os-op-coronavirus-mental-trauma-aspire-health-20200914-xw7kcjahvbfrlgcd2s4bmvbmzi-story.html
  3. https://www.webmd.com/lung/news/20200813/levels-of-anxiety-addiction-suicidal-thoughts-are-soaring-in-the-pandemic#1
  4. https://hub.jhu.edu/2020/04/06/dani-fallin-mental-health-challenges-coronavirus/

Emotional Well-Being and Gratitude During COVID-19

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“Your personal experiences make up maybe 0.00000001% of what’s happened in the world but maybe 80% of how you think the world works… We’re all biased to our own personal history.” Morgan Housel, Ideas That Changed My Life

COVID-19 Stressing You Out

According to the CDC, everyone reacts differently to stressful situations such as a pandemic and lock down. As Americans experience the effects of the COVID-19 pandemic such as worry about job loss, concern for your health or that of a loved one, the need to social distance, confining yourself to your home or apartment, changing your routine, spending more screen time than normal, it’s important to practice some degree of emotional self-care.

Finding ways to practice self-care can help reduce your stress and enhance your emotional well-being during the COVID-19 pandemic. Healthy ways to cope with stress include:

  • Taking daily walks
  • Practicing meditation
  • Making time to pray and to express gratitude
  • Knowing where and how to get help
  • Taking breaks from watching, reading, or listening to the sensationalized news stories and coverage about COVID19, protests, and political rancor
  • Reading novels and writing in journals
  • Learning a new skill or hobby
  • Eating healthy foods and getting enough sleep
  • Avoiding or reducing eating processed foods, foods high in refined sugars and carbs, and fried foods
  • Exercising and prioritizing time to unwind by doing activities you enjoy
  • Connecting with others (while social physical distancing measures are in place, consider connecting online, through social media, or by phone or mail)

Gratitude

Gratitude is recognizing the “value for favorable things or positive life experiences for which we did not actively work towards or ask for”, according to Sadhguru. Gratitude is important because it helps us see a world that is much bigger than ourselves. When we have gratitude, we can help ourselves and each other grow personally or professionally.

Psychologists find that, over time, feeling grateful boosts happiness and fosters both physical and psychological health, even among those already struggling with mental health problems. Ways you can foster gratitude by keeping a journal to write about the little joys of daily life or by writing down “three good things” that have gone well for you and identify the cause. Additionally, you can also foster gratitude by writing thank-you notes to others or going out of your way to be kind to others, according to Psychology Today Magazine.

Sources:

  1. https://www.psychologytoday.com/us/blog/hope-relationships/202004/overcoming-depression-and-desperation-in-the-time-covid-19
  2. https://www.psychologytoday.com/us/basics/gratitude

Understanding the Black Experience | Psychology Today

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“Can a White Person Understand the Black Experience? Layers of pain, mistrust, and taboos keep people divided along racial lines.”

Having frank discussions about or asking questions about racism and injustice is challenging for many well-meaning people. They simply don’t know how to approach or “connect to our fellow human beings who are from different ethnic/racial groups and cultural traditions”.

This is particularly difficult when there are over 200 years of racism, injustice and oppression between groups; and, it is difficult while significant social, health and economic inequities remain.

Without an American and world history lesson, it’s safe to say that there are many reasons for discomfort on both sides. This is the major reason why most White people do not understand the African American experience in America.

“Yet, making an authentic connection with another person means understanding, empathizing, and being able to see the world through their eyes.” And, it is hard to imagine that people of color are living a completely different experience in America simply by virtue of their race, ethnicity or gender.

Racism hurts. 

As much as people of color adopt a stoic attitude and pretend that racism does not impact their psyche, repeated and persistent racism can be traumatic. And it hurts doubly so when those around refuse to acknowledge the experience and its potential impact. Well meaning people tend to view an experience as only a single racist occurrence, rather than understand that the incident adds to a lifetime of accumulated experiences and frustrations.

People of color do not want other people to discount their experiences or tell them that they’re being overly sensitive. So if you are a White person patiently waiting for a “Black person to spontaneously share their experience, you may be waiting a long time.” 

Read more: https://www.psychologytoday.com/us/blog/culturally-speaking/201408/can-white-person-understand-the-black-experience

References:

  1. https://www.psychologytoday.com/us/blog/culturally-speaking/201408/can-white-person-understand-the-black-experience
  2. Carter, R. T. (2007). Racism and Psychological and Emotional Injury: Recognizing and Assessing Race-Based Traumatic Stress. The Counseling Psychologist, 35(1), 13-105.
  3. https://www.msn.com/en-us/news/us/being-black-in-america-shouldnt-feel-like-a-overwhelming-burden-opinion/ar-BB15jkne
  4. https://www.nytimes.com/interactive/2018/03/19/upshot/race-class-white-and-black-men.html