Bankruptcy isn’t something people look forward to and because this is the case, many people who know bankruptcy is in their future procrastinate and put off filing for years. There is usually some event that creates urgency to file and causes them to seek a bankruptcy attorney. This event could be notice of a foreclosure sale, repossession of their car or being served with a lawsuit. Whatever the reason may be, most people don’t file bankruptcy until they feel they are being forced to by their creditors and this delay may cost them tens of thousands of dollars and a lot of unnecessary stress.

Procrastination can be very expensive for the indebted. This is especially true for bankruptcy filers who have a high income. For filers with high incomes a quick and easy Chapter 7 bankruptcy case is usually not an option. The Bankruptcy Code limits relief under Chapter 7 bankruptcy to below-median income households. High income filers are generally required to file a Chapter 13 bankruptcy case and make a payment to a trustee for five years. The Trustee takes the money paid to her and pays it to the creditors.

In Chapter 13 bankruptcy, debtors are only required to pay their unsecured creditors if they have disposable income. Disposable income is calculated using a form very similar to what you would expect to fill out if you were filing a tax return. This form takes your average income for the last six months, excluding payments under the Social Security Act, and then reduces this amount using IRS deductions like taxes, insurance, expenses associated with operating a vehicle and many other deductions. Many Chapter 13 debtors don’t pay anything to their unsecured creditors, but high income debtors often repay 100% of the amount owed to these creditors.

If you are in the category of debtors that have to pay back all of your unsecured creditors then procrastinating can be very costly. As anyone with a credit card can tell you, debts grow, and the longer they remain unpaid the larger the balance. For example, the balance of a credit card incurring 30% annual interest is doubling every two and a half years. At that rate a credit card with a $10,000 balance can increase to $40,000 in five years and that isn’t taking into account late fees and attorney’s fees if you get sued. Filing bankruptcy earlier, means that you repay less in your bankruptcy case because you don’t owe as much at the time of filing.

The title gives us the impression we are in for a fun ride and in most ways we are.

However, the chapter blasts into action with a visualization exercise that triggers some deep and emotional thoughts.

You find yourself at a funeral which after following the process turns out to be none other than yours. Given in to this exercise, it is very powerful.

Your assignment is to think about what you would like all the speakers to say about you.

Included in the group of speakers is a member of your family, a close friend, someone from work and an associate from church or a community organization.

What kind of person were you, what sort of son, mother, grandparent, friend or work colleague? What has your character been like and how have you touched the lives of those around you?

Write your thoughts down and it will provide clarity towards your “end in mind”.

Your definition for success will be written right there in front of you.

It is unbelievably easy to get caught up in life in general and extremely easy to lose sight of what the pathway to our destination looks like.

To begin with end in mind is critical when ascertain where you are now and what direction you need to take in the future.

The chapter is based on the principle that “all things are created twice”. There is always a creation made in the mind first and followed by a physical creation.

Think about it. Do you map out your journey to a friends house in your head first before taking to the roads? Do you consider the diet before grabbing that bar of chocolate?

There is a tremendous section regarding leadership which highlights the differences between management and leadership. It’s a real eye opener.

The middle section in this chapter is labelled by Stephen as the most effective way he knows to “begin with the end in mind”.

It is the development of a personal mission statement.

It is your personal statement that outlines what you want to be and what you want to do.

Both of which will be based on your personal values and principles.

Ultimately your statement will form the back bone to your decisions, both big and small. These decisions will no longer be dependent on your circumstances or emotions at the time.

Stephen Covey uses a terrific metaphor when describing the first 2 chapters.

Habit 1 says “You Are the Programmer” and Habit 2 says “Write the Program”.

The second habit takes us into the areas of self awareness and our ability to examine our own thoughts.

It also discusses the differences between the left and right side of the brain domination and what it means to us the grand scheme of things.

As if this chapter hasn’t drained you of your emotional energy it delves into topics such as visualization, affirmation and the identification of your roles and goals.

The power in this chapter will come from your participation.

Your pathway to your destiny and how you get there will be a real eye opener if you haven’t done the funeral exercise before..

What I can tell you is that the first time I did this exercise, the things I thought were important to me and the things I thought defined me bore little resemblance to what I had visualized.

Chapter 3 is the final piece of the puzzle on your way to conquering your very own personal victory. Habit one shows us that we are in charge of our own destiny. It empowers you to change your program that may have been put in place since childhood. Habit two starts the process of identifying what it is you want to be through your powers of visualization. This is the mental creation of the end you desire. Habits one and two are the prerequisite to chapter three which will put your mental creation into a physical force. It’s the day in day out action you will need to take. With the foundations set, you will be able to practice effective self management through your principle centered lifestyle.

The successful person has a tendency to do what other people won’t do. It’s not that they necessarily like it but their strength of purpose will overcome the doubts. The chapter gives you the opportunity to critically examine where you spend your time. There are 4 quadrants to choose from and your answers may well surprise you. Is your day consumes with urgent matters? Is everything you do classified as important? Are you one of the many who are swamped on a daily basis by what is called “crisis management”?

You will gain a terrific understanding of what effective people do to manage their time. Habit 1 suggested you are the programmer, habit 2 sheds light on writing the program and habit 3 is all about running the program or in fact, “living the program”. Living the program is not something we do every now and then. If it is in line with our principle centered pathway, our program becomes how we live our lives day in day out. How we spend our time is absolutely paramount to our levels of success. The chapter delivers towards the beginning of “public victories” with some further examination of the P/PC balance and a concept which was brand new to me called “The Emotional Bank Account”.

The emotional bank account is a metaphor for something that describes the amount of trust that has been built up in any given relationship. Courtesy, kindness and honesty are examples of deposits into a bank account and discourtesy, cutting off and disrespect are withdrawals that can deplete your account. Without a positive emotional bank account that has established a trend of continual deposits, withdrawals will tend to have a compounding and negative effect.

This concept can be adapted to every relationship you have whether it be personal or business, the power of a positive account will always increase your level of trustworthiness and integrity. Learn, understand and implement the content contained in these pages and you will not only change your life but you will be well and truly ready for the public victories that are about to follow.