Over the years, I have come to understand that acceptance is a powerful human characteristic, which can be curative for a wide range of human challenges, including issues related to recovery. According to Alcoholics Anonymous, “Unless I accept life on life’s terms, I cannot be happy. I need to concentrate not so much on what needs to be changed in the world as on what needs to be changed in me and in my attitudes.”

Consider for a moment the childhood brainteaser of the “Chinese finger trap.” This interwoven tube of heavy paper locks its user’s fingers in place when one finger from each hand is inserted into each end of the channel. Subsequent attempts to remove one’s fingers prove fruitless.

The secret to freeing oneself from the Chinese finger trap is to accept that one is powerless over it. Although this mindset may initially seem self-defeating, it is actually a lesson in “living life on life’s terms.” Controlling the Chinese finger trap is not the goal. As one accepts the powerlessness, one can finally focus upon the true goal of freedom. This renewed focus allows one to let things happen and do things consistent with freedom, in order to solve the dilemma. Instead of simultaneously pulling one’s fingers in opposite directions, which creates more of a stuck sensation, one can push one finger into the trap, which actually helps to loosen its grip.

I often use this above analogy within my private-practice, in order to illustrate to my clients the power of acceptance in dealing with their presenting concerns. In real life, it tends to be easier to accept the unacceptable, if one can first find something within the situation about which to be grateful. Therefore, gratitude helps to lead to acceptance. Acceptance can help to lead to forgiveness. Forgiveness can help to lead to the quintessential experience of love.

In light of the above, consider the following example. A teenager totals his new car. He is angry with himself for not having made a complete stop at the stop sign. He struggles with guilt and upset for several weeks, because he does not accept the fact that he acted so foolishly. Eventually, he begins to appreciate the fact that nobody was injured and his insurance has paid for his automobile replacement. Now, he can begin to accept the fact that accidents happen and he can learn from the experience. Finally, he can begin to forgive himself and feel appropriate self-love, despite his human condition.

Living in a larger home has been a challenge. Downsizing into small house living, on the other hand, has been a blessing for the family, not so much cleaning, less expenses, less utilities and more sharing with one another. Want to live big? Move into a tiny house, shipping container, an RV, small apartment or studio for more fun and less financial stress. Remember when all the average family wanted was a larger home and more space for entertaining? Why not entertain using the outdoors?

However, during a point in time, I recall longing for a much smaller home and work less at it. Arriving home after work and feeling I had arrived at my kingdom was priceless. The larger the home, the bigger the bills! And the weekends were for cleaning, grocery shopping and patio maintenance. It usually was a run-run-run deal, and then all of a sudden it was Monday again and all tired to start working again. It was a vicious cycle for many years, while looking forward to the next weekend in order to rest, but it never happened. Not every family lives this way, but many fall into this routine easily.

There are much desired advantages that are achieved when you downsize. Just think about the less effort, time and money on keeping up with the lifestyle. Another one is that just the necessary things are kept in order to avoid clutter for a much simpler daily life. People will own what they need and have what they want. They will find it easier to live day by day because they are no longer complicated.

Downsizing will allow them to use smartly the available space, there will be one spot for eating and having family togetherness. Without a doubt, there will be more time for yourself. They will enjoy traveling with less worries. And what about not having to pay a 30 year mortgage, while another obvious advantage would be to save more money for the future and well deserved vacations. Mostly the things you never get to do unless you take out a loan and oops, you’re tied up again to another debt.

Freedom we scream! When we were teenagers, we couldn’t wait to grow up to be on our own, but then we found out there really wasn’t any freedom because we are sucked into the things that life swallows us into slowly.

So why not think ahead, plan ahead, dream ahead? Pay off your bills by daring to take upon that freedom and downsize to live the real lifestyle you were longing for. Set a goal date and start the process. It is possible, search for the options available in tiny houses, shipping container homes, recreational vehicles, small apartments or studios. Live big in a tiny home and plan your own wellbeing for the future. Have more fun, live more, live healthy physically, emotionally and financially.

We can do it, so let’s!

After you have completed Level II of the game to Financial Freedom and started a Retirement Plan, it’s time for Level III – creating a Cash Cushion. What’s it going to take to win this level? You need to have an emergency fund. That’s right, you need to set up a simple savings account and start putting away at least 3 months of expenses. Sounds pretty easy, right?

Mistakes I Made – the Short Version

As for me, I was on this Level for a long, long time – probably a decade. I always thought there was a better place to put my money “to work.” Your money should be working for you, right? Every three or four months, I would amass a good chunk of my goal. I would see that money in my savings account and say, “I need to invest this money and get a return. It’s just sitting there.” And, I would try and skip this Level. There were years, I thought I was playing at Level VII, but really I was still playing Level III.

In the beginning, I would take that money and put it in some risky stock speculation. I wouldn’t even call it investing because I was watching the stock prices daily and making trading decisions on a daily basis. That is not investing. I would invariably end up losing 20% – 40% and sell the “investment.” Then I’d be down and put the cash back into my savings account. After another three or four months, when I saved up another good chunk of my goal, well, you know what happened next.

So, did I learn my lesson after the first few times? No. Did I learn in the first couple of years? No. Did I learn the importance of having cash set aside for emergencies? No. I’m stubborn. I’m “smart.” I can beat the “system.” And so I continued like that for years.

Another version of this lesson for me was why having extra cash around is so important. There are so many emergencies that can happen that require extra cash. If you don’t have the money sitting in a savings account, then you have to sell something to raise cash. Typically, you’re selling at a very inopportune time. Maybe taxes come up and you owe more than you think. If you don’t have cash, then you have to sell something. What if the economy is going through a recession? Typically the time you lose your job is the same time that the stock market is down 20% or more. That really hurts when you have to sell at a loss to raise cash. It’s almost having a process of “buying high and selling low” in your financial investments “system.” That is not going to increase your net worth over time. That is going to lose you money.

The Importance of Level III – the Future Levels

Let me tell you another reason why Level III is so important. Later in the game, we’re going to be investing in real estate and businesses that generate cash flow, but are not considered liquid. That means you can’t sell them easily. It’s going to take time to sell these non-liquid assets. It’s going to be more like selling a house than selling a stock on the stock exchange. These non-liquid assets are where a lot of the power is because of their ability to produce cash flow. We’ll be looking to buy them with the potential of never selling them. We won’t be looking for capital appreciation. We’ll be looking for cash flow. So, if you don’t have the proper reserves in place, and if you haven’t learned this lesson yet, you’re going to get yourself into a lot of trouble. Entire dynasties have been brought down because they didn’t have enough cash in the bank. An opportunity is only an opportunity if you can take advantage of it. Otherwise, it’s just a good idea. For you to be able to take advantage of an opportunity, you’re going to need cash. For you to be able to protect some of your other investments, you’re going to need cash.

It took me over a decade to learn this invaluable lesson. Save, at a minimum, three months of expenses in savings account for emergencies. Your emergency fund is the buffer in your system, the redundancy, that allows all the other systems in your financial structure to work well. It’s the grease, not the gas – but, both are needed in a well-running car to get you where you need to go.

I think Level III is a hard level. Level III is sneaky. It’s easy to over think this one and try to beat the market. I hope you can learn from my mistakes and keep this Level simple. It may take a while to save that much cash. Remember, I said it was simple, not easy. Save the cash. Save it all the way to get to Level IV and beyond.

I’m a great believer that it’s almost impossible to do Emotional Freedom Technique the “wrong” way – provided you get the basics right! If certain foundational rules of EFT are shoved under the rug you won’t make progress quickly enough, or end up with the permanent healing you deserve. You might even get burnt out – which would definitely be detrimental to your health. Here are the seven mistakes:

1. Relying on the “one minute wonder” that Emotional Freedom Technique is Famous for: Yes, it can happen – we enjoy it when it does, but don’t bet your life on it. Don’t fall into the trap of, “I did it a few times but nothing happened”. Persistence is often the name of the game.

2. Agonizing over the words: Some of my clients tell me, “Your words are amazing… I can’t copy them.” Guess what? Your words are more important than mine. We each have our unique style, and as long as you’re focusing on the issue, simple words from the heart will always be successful. And your inner self is a lot more tuned in than you think.

3. Overlooking your Successes: It’s sometimes difficult to appreciate small gains if we’re not yet at the finish line. Big mistake! The more grateful we are for the baby steps, the more opportunities we’ll have to experience the giant steps that will inevitably catch up with us.

4. Not Knocking it Down to Zero: It’s tempting to call it quits after we’ve achieved significant relief while doing EFT. If your frustration with your boss/your headache/ or your fear of crowded subways has come down from ten to four it’s time to celebrate – and time to get it down to zero ASAP! Hint: The closer your SUDS level is to zero, the higher the likelihood that healing will be permanent.

5. Impatience: This is different from #1 because it points to a general attitude. While you’re persistently tapping for a specific issue, you might still be nervously watching the clock and wondering when you’ll finally be finished with this. While your question is valid, it actually hinders healing. While you’re focusing on “this is taking forever” the Law of Attraction obliges you with “taking forever.” It’s a much more beneficial strategy to give yourself permission to have all the time & space you need.

6. Mistaking Success for Failure: I was working with a client on an anger issue, and she was an absolute sponge for EFT. When I felt we’re done I asked her to assess the intensity of her anger. It had been a ten, and I felt it was zero, or close to it. She responded, “It’s not working – it’s still a ten.” Oops! What had gone wrong? I asked her, “Lisa, you’re still so angry?” She replied, “Angry? I’m not angry at all! But I’m so sad… ” Here’s the lesson to be learned: Tune in to the specific issue you were working on. Acknowledge your successes, and then move on to deal with other emotions that often surface.

7. Self-Acceptance Issues Get in the Way: Before I begin a round of Emotional Freedom Technique I ask my clients to say, “I completely & deeply love & accept myself” and then asses their number. One client banged on the table and shouted, “It’s a ten! I hate myself!” If your number is not a zero, you can still be totally successful doing EFT – but do rephrase the acceptance piece to reflect your feelings. Here are some examples: “I love & accept myself the best that I can.” / “I accept myself with compassion.”/ “I can visualize accepting myself in the future.” Remember, you can never fool your subconscious mind!

Here’s a “Bonus Mistake”: Don’t be hard on yourself if you happen to detect that you’ve made some mistakes while doing EFT, and above all, don’t let it slow you down. Learn from them – that’s what they’re there for, and dive right back into EFT healing!

I am fixated with freedom, but with freedom comes the power to choose. The freedom to choose love or hate; move forward or stay stagnant; to be victorious or be a victim; to laugh or cry; to see good in every situation or not. You choose. Without the power to choose, we are not free; the power to choose requires responsibility. Choice is like breathing; you cannot avoid it.

When everything is working in our lives, we proudly take the credit. But when the events in our lives are forcing us out of our comfort zone into a growth zone, we blame everyone and everything surrounding us. We are quick to blame that "big bad Goliath" for causing our problems. Often in the midst of trouble, we see our inner David as being small and unprepared for such a great challenge. We tell ourselves that after all 1 Samuel 17 really does not have anything to do with us. So exercising our power to choose, we choose fear. When we do this we have actually underestimated the strength of our inner David.

When life forces us out of our comfort zone, we are forced to come face to face with all that needs to be healed in our own lives. The murkiness that we have covered up for such a long time begins to ooze into our world requiring us to finally conquer it before we can move toward our goals.

Coming face to face with what we fear is hard work but it is necessary if we are going to fulfill our destiny. Where to start is what causes the most angst. So I advise starting where you are. Using the power of your inner David is a great beginning.

First, make the decision to do whatever it takes to conquer your fear. Without out a decision to move forward, no matter what, you will never meet your success.

Then create a plan for your new life. How many hours, days will you work? How will you spend your evenings and weekdays? What are your new friends like? Where will you vacation? If these images are difficult for you to maintain, then create a Vision Board, but remember Vision Boards are no substitution for taking action. Vision Boards are useful for helping to organize your thoughts and ideas.

Next, identify all the things you have for which to be grateful. When you are in the midst of a challenge, we complain about what is wrong with our life. It is doing this time of crisis that we must remember just how many good things nestled in our life.

Forgiveness is one of the most precious gifts we can give ourselves. Before we can move forward negative emotions must be resolved. Come to terms with any anger you feel about any event, circumstance or person. This is a radical step, but choosing to find the good which is the lesson buried in the midst of your anger will reveal what story to which you are tied. Once identified, you can take the steps to unbind yourself from the worn-out story.

Now move your vision into action. Make a list of actions that must be taken. You must take 3 to 5 actions a day to achieve your goals.

Now untie yourself from anything holding you back. Go forth and create.

Remember, life is too short to drink cheap champagne. Live the life you have imagined. Dream Big!

I’ve noticed that one of the biggest financial challenges that many of my clients face is keeping track of where their money goes. Here’s what often happens: They receive their paycheck and deposit it in the bank, and then a few weeks later it’s somehow mysteriously disappeared. For all they know, it’s been consumed by the black hole in the financial universe. Personal budgeting can provide financial help to married female entrepreneurs.

To make matters worse, they still have necessities to pay for: groceries, gas and utility bills, not to mention credit card payments. Somehow they manage to be surprised when once again there isn’t enough money to cover the necessities. So, they turn to the good ole’ credit cards or take out loans from friends and family to make up the difference. They heave a sigh of relief and say, “Thank goodness, we made it through another month.”

But in truth, they haven’t really made it. They’ve only acquired more debt that will have to be paid off in the future-more debt that continues to quietly whittle away at the hard-earned paycheck they bring home each month.

“But I Don’t Do That!”

“That’s not me,” you say, “I don’t borrow money from friends or family, and besides, I pay my credit card bill off in full each month.” And I say, “wonder­ful, great… but, is any of your money going towards important things like your retirement, emergency savings or saving up for your big dreams?” If you are like many people, I would guess that it probably isn’t. I’m willing to bet that all of your income is going towards supporting your current level of lifestyle as well as debt.

What I’m talking about is spending money on things that make you feel good in the moment but keep you in debt and without sufficient retirement or emergency savings. Maybe you like to buy nice clothes, cool gadgets, new music, a weekly manicure or magazines.

If you do manage to put money into your savings account you may likely be one of those people that ends up having to dip into it regularly after discovering that you don’t have enough to make it through the month. Many of us walk around in what I call “blissful, financial ignorance.” Another appropriate word for this is denial.

You also need to become aware of your spending patterns. When I speak of tracking your spending, I’m talking about using a system that tells you where your money is going (how much you spend each month for things like groceries, transportation, utilities, gifts, dining, etc.)

Awareness is the critical first step towards changing our money behaviors. If we don’t have a clue as to where our money is going, how much and for what, we won’t have the necessary knowl­edge to motivate us to change our behaviors.

Why should you be motivated to spend less money on magazines, lattes or clothing, if you don’t know how much you’re actually spending on these items each month, and how much you have left over, if any, for savings or paying off debt? Because real numbers inspire real motivation.

Remember: if we always do what we’ve always done, we’ll always get what we’ve always got.

This means if we continue to unconsciously spend money the way we’ve always spent it, it’s no surprise that we’ll continue to have in­creasing credit card debt and little or no money in our savings accounts for our important financial dreams and goals.

We may experience a fun, carefree lifestyle. But it is a lifestyle that is acquired on borrowed money that we’ll have to pay extra for, both now and long into the future-a lifestyle devoid of the financial security and deep peace of mind that all of us desire.

Increasingly, the subject matter of freedom has continued to occupy the center of public discourse all over the world. For one thing, everybody cherishes his or her freedom. It is natural for man to fight for his freedom.

“Freedom”, “my freedom”, everyone seems to be crying out aloud these days in the streets, on campuses, in the public square, in the market places and, in fact, everywhere. In the past, many thinkers and philosophers like Jean-Jacque Rousseau, John Locke and John Dewey had devoted considerable time and space in their respective writings examining the nature of freedom and human responsibilities. Today the subject matter of freedom continues to elicit public discussion. A college student, for instance, wants absolute freedom to do what he or she likes without any inhibitions. Some Economists argue that the only road to the 21st Century economic prosperity is economic freedom.

What is freedom? In his book entitled: Freedom, Cormack Burke states that freedom means the exercise of free will by the human person. It also means that man possesses the power of intelligent choice. But Burke went further to argue that free will and freedom are not the same thing. For example, in the exercise of one’s will, one might decide to travel to Australia; yet one may not have the cash to do so. Therefore one is not yet free to travel to Australia. Whereas, a slave, for instance, may have a free will but lacks the freedom to do what he wants to do. Is freedom synonymous with a license to do whatever one likes? Burke and many writers answer in the negative. Freedom is no license. Freedom doesn’t mean permission to do what one likes because a person can do what he likes and still not be free. According to Frank Sheed, one can eat as much as one likes and ends up suffering indigestion. So true freedom is to choose what is right, not what is wrong. True freedom to Burke, is the power to be oneself; the power to realize one’s potentials as a human being.

In his book: Christ Is Passing By, St. Josemaria Escriva, the Founder of Opus Dei, writes: “when we breathe this air of freedom, we see clearly that evil is enslavement, not liberation. He who sins against God keeps the freedom of his will to the extent that he is free from coercion, but he has lost it in that he is no longer free from blame. Such a person may show that he has acted according to his preferences, but he does not speak with the voice of true freedom, because he has become the slave of his decision, and he has decided for the worst, for the absence of God, where no freedom can be found”.

Aside offending God, wrong exercise of freedom destroys the public good. Take indecent dressing for example. Many of the young people who dress indecently argue that they are excising their freedom or their right. Libertarians advocating for freedom without responsibility equally argue that neither the State nor any individual has any right to regulate what they consider as their “private morality” or “private conduct”. In answer, Professor Robert P. George argues persuasively, and I agree with him that public morals regulate private conduct or right to privacy in so far as it harms, or threatens to harm the public interest or public good. The man smoking marijuana or the young student cheating in exams or browsing pornography might argue that the State is violating his right to private morality, but the State could counter-argue that what the man or the young student had don dubbed private morality harms public interest.

So freedom is not doing what one likes: true freedom is choosing what is right. Besides no freedom is absolute. Freedom without limits is sheer slavery. No man is an island unto himself. Our private acts can be damaging to the public morals. No individual has a right to put his neighbor in moral jeopardy under the pretext of exercising his freedom.

Various artifacts, stories and a 12 minute film trace America’s struggle from the earliest beginnings of slavery through the Civil War unto reconstruction after the attainment of freedom at the Underground Railroad Freedom Center.

One of the most memorable exhibits is the wooden log cabin preserved and restored within the center to represent a principal instrument of dehumanizing the black race with more than 75 slaves usually stacked on the limited floor space and above in special racks to which they were shackled and chained thus forced to eat and defecate right there.

This structure was an actual one found on a Kentucky farm in Mason County which was moved from there and rebuilt in the Freedom Center. It now dominates the second-floor atrium where visitors encounter it again and again while traversing the other exhibits. It could also be seen through the Center’s large windows from the downtown street outside.

Slaves were temporarily housed there on their way south to be resold.This 21 by 30 foot (6 by 9m), two-story log slave pen built in 1830 was used to house slaves being shipped to be auctioned.

An original feature of the Slave Pen is a shackle ring in the second floor joist, which was being used to secure male slaves.

The pen is said to have been originally owned by Captain John Anderson, a Revolutionary War soldier who became a slave trader. He was particularly known for his keen business sense watching time.and other conditions that could enhance or ruin his chances for a good profit. He would always appraise the potential market, his investments and deal-making and the intricacies of gathering, holding, transporting and selling slaves at the slave markets in Natchez, Mississippi before making a plunge.

Slaves waiting to be transported from Dover, Kentucky to slave markets in Natchez, Mississippi and New Orleans, Louisiana were imprisoned in this barn for a few days or several months, waiting for favorable market conditions and higher selling prices to prevail.

The barn has eight small windows, the original stone floor from a large chimney and a fireplace. There is a row of wrought iron rings through which a central chain ran, tethering men on either side of the chain. Male slaves were held on the second floor, while women remained on the first floor where they used the fireplace for cooking.

“The pen is powerful,” Carl B. Westmoreland, curator and senior adviser to the museum said. “It has the feeling of hallowed ground. When people stand inside, they speak in whispers. It is a sacred place. I believe it is here to tell a story – the story of the internal slave trade to future generations.” Visitors to the museum walk through the holding pen and touch its walls, as we did when 17 of us from different parts of the world visited it.. Taken from records kept by slave traders in the area who used the pen, the first names of some of the slaves believed to have been held in the pen are listed on a wooden slab in the pen’s interior.

Westmoreland spent three and a half years uncovering the story of the slave jail. “We’re just beginning to remember. There is a hidden history right below the surface, part of the unspoken vocabulary of the American historic landscape. It’s nothing but a pile of logs, yet it is everything.”

Other prominent features of the Center include:

o The “Suite for Freedom” Theater where three animated films address the fragile nature of freedom throughout human history, particularly as related to the Underground Railroad and the institution of slavery in the United States.

o The “ESCAPE! Freedom Seekers” presentation and interactive display about the Underground Railroad where school groups and families with young children are presented with choices on an imaginary escape attempt. The gallery features information about figures like abolitionist William Lloyd Garrison, Underground Railroad conductor Harriet Tubman. and orator Frederick Douglass ~Escape Freedom Seekers and ~The Underground Railroad is an intriguing and inviting hands-on interactive experience designed particularly for children and families encouraging them to explore this troubled period of American history. The center is almost transformed to a school as stories of people and families involved in fighting against slavery are being told.

o The film, “Brothers of the Borderland,” highlighting the story of the Underground Railroad in Ripley, Ohio along the Ohio River and the roles of conductors John Parker and Reverend John Rankin.

o Information about the history of slavery and those who opposed it, including John Brown, Abraham Lincoln and the American Civil War.

o “The Struggle Continues,” an exhibit depicting the ongoing challenges confronted by African-Americans since the end of slavery, ongoing struggles for freedom in today’s world, and ways that the Underground Railroad has inspired groups in India, Poland and South Africa.

o The John Parker Library which houses a collection of multimedia materials about the Underground Railroad and freedom-related issues.

o The FamilySearch Center where visitors can investigate their own roots.

The Freedom Center’s Executive Director and CEO, Spencer Crew, was previously the director of the Smithsonian Institution’s National Museum of American History.

Related Article:

http://ezinearticles.com/?Introduction-to-Underground-Railroad-Freedom-Center&id=864485

Once you’ve completed Level I (Tackle Bad Debt) in the game of Financial Freedom, it’s on to Level II – Retirement Planning. There’s a lot to consider when successfully setting up your retirement plan. In this level, we will just cover the accumulation portion of retirement planning, not the distribution phase (which happens when you retire). To set up the retirement plan, start with the Three main factors: determine your goals, the number of years remaining until your retirement and your tolerance for risks. The goal of this initial process is to set the average glide path for how contributions and appreciation will add up to enough money for you to convert into income at retirement.

When I started a retirement account, it was 1998 and I think Roth IRAs had just been established. So, I went through the whole process with a financial advisor, who was also my neighbor. I wanted to retire when I was 65, I wanted $3 million and I had a high tolerance for risk. I had always assumed that a high level of risk was required for any chance of a big reward. I don’t think that way anymore! When the “dot com” bubble burst in 2000, I had a new feeling about my “high-risk tolerance.” After paying all the brokerage fees, I think I lost about 50% of my investment that year. Because of that loss, I was forced reevaluate what having a high-risk tolerance meant. I’ve since learned you don’t need to take on high risk to make good, consistent returns. In fact, it’s probably better not to.

A lot of people don’t seem to get satisfactory answers as to the point of those 3 planning questions. So, I’ll say the main point of identifying your goal, time horizon, and risk tolerance is to set your portfolio’s asset allocation. Your asset allocation is the mix of various asset classes (like stock, bonds and real estate) that you will target, in percentage terms. Higher risk tolerances allow for a higher volatility. Since stocks are more volatile than real estate and bonds, a higher risk tolerance would set up a portfolio with a higher percentage of stocks. Lower risk tolerances look to reduce volatility, and therefore, target more fixed income in the asset allocation.

How does asset allocation work? It works in two ways. One way is diversification. Because asset classes react differently to the changing environment, diversification, over time, produces better results with less volatility. Why is that? All investments are affected by 4 main factors:

1) commodity prices as input prices, specifically oil,

2) interest rates as the cost of borrowing,

3) inflation (or deflation) as a combination of Federal policy, monetary policy and general pricing, and finally,

4) the economy, in terms of growth (corporate and economic).

Investments are affected by the nominal numbers for each of these 4 factors as well as the rate of change. For example, you can have low interest rates, but if those interest rates suddenly start to rise quickly, then the market will start to discount that change. Rate of change can greatly affect market pricing and volatility. Remember, the end goal is that the market is a future discount of profits, and any big change in any of these four areas will greatly affect the calculus.

The second way that asset allocation works is through “re-balancing.” Re-balancing allows for a systematic process of buying low and selling high. Re-balancing your assets at set points throughout the year, say twice per year, allows you to sell the asset classes that have grown larger than their target allocation percentage and buy asset classes that have drifted below their target asset allocation. This provides for a process that automatically and systematically buys low and sells high.

Now, why are we talking about this at Level II – Setting up Retirement? It’s because I recommend you find a service that can do all this for you as cheaply as possible. I recommend looking at the “robo-advisors” – WealthFront, Betterment or Personal Capital. These companies walk you through the planning questions, set a risk tolerance number from 1.0-10.0 and then set up an asset mix based on your profile. They allow you to set up automatic contributions and they will handle re-balancing on a set schedule. The important point is to have all this inside an automated system so you don’t even have to think about it. You can also directly buy the index ETFs, free of a trading charge, inside a brokerage like TDAmeritrade. They offer 100 free index ETFs. Keep in mind, though, that ETFs are not as automated as the robo-advisors. I would start with a robo-advisor account and then optimize and improve upon it later as you start getting better at the skills of investing.

So, to achieve Level II, you need to set up a retirement account and automatically contribute 10% of your income. I would generally stay away from company 401k plans, unless they provide a match. If they provide a match, then it’s free money and you can start Level II by setting up your 401k, but only to the amount the company will match. Why? Because 401k plans have many hidden fees and are quite expensive to manage. Most of the people getting rich in 401k-land are the providers, not the participants.

Additionally, how do you know you’re on track to retirement? I would use these very general statements. You want “four figures” in your 20’s so that some day in your 30’s you can achieve “five figures.” And you do that so you can get “six figures” some time in your 40’s. If you do that, you’re looking to get to “seven figures” some time in your 50’s. And if you want extra-credit, then you achieve “eight figures” some time in your 60’s or 70’s. If you’re 27 and you have $4,000 in your retirement account, you’re on track. If you’re 38 and you have $55,000 in your retirement account, you’re generally on track. If you’re 44 and you have $145,000 in your retirement, then you’re on track.

The main point here is that you need to have a portfolio of “four figures” before you have a portfolio of “five figures” and so on. And, that a retirement portfolio will use the power of compound interest and a long time horizon to generate large returns. This is a very general rule that does not apply to all. Also, this doesn’t allow for someone to skip the “goals” section of building a risk and investment profile. It should be used as a very general rule of thumb. I’ll give another rule of thumb in subsequent articles. For now, I hope you’ve found this point somewhat helpful and enlightening for how to win at Level II of the game of Financial Freedom – setting up a retirement account and investing process.

So, are you ready to complete Level II – Setting up a Retirement account and save 10 percent per year? You could do the whole Level II in one step – setting up a Wealthfront account and have automatic monthly contribution set up into a traditional or Roth IRA. OR, you could set up your 401k at your company, as long as they have a generous matching policy. OR, you could set up a TDAmeritrade account, set up monthly automatic contribution and invest using their free indexed ETFs. All of these approaches get you on your retirement investing track. You can improve upon it later. The goal is to just start and then make the management of it automatic.

In this article we are going to learn about Suze Orman’s 9 Steps to Financial Freedom. I will be explaining each step in full detail and then giving you my opinion on how the step is/isn’t applicable to personal finances and benefiting you. 9 Steps to Financial Freedom is a book that Suze Orman wrote in 1997. It is now over 10 years old but has stood the test of time and is still liked by many today.

Suze Orman’s 9 Steps to Financial Freedom:

Step 1 – Seeing how your past holds the key to your financial future

In Orman’s 1st step of her book she talks about how most people have some past memory that effects the way they perceive money and finances. In this chapter she helps you to realize that past memory and move on from it so that you can start new with your personal finances.

This steps to be a bit off and useless for most people. There are some people who have bad memories regarding money but in general most people are just to lazy and undisciplined. For most people it is an issue of motivation and not an issue of a bad experience. This step could be helpful to some people to get them started but it not broad enough to be applicable to a lot of people.

2 – Facing your fears and creating new truths

Here Orman makes a connection with the first step in the book. Orman has her readers look at their past memories and see how they cause them to act toward money in their current life. Orman suggests writing out a list of your money related fears and then realizing how to overcome these.

Again, I find this step to be more of a mental exercise for those that need it but not to be widely applicable to all people. The first two steps in her book seem to be more related to a traditional self-help type book and not a personal finances or financial planning book.

Step 3 – Being honest with yourself

In the third step of Suze’s book she goes into detail about budgeting. Suze suggests getting all of your past records and realizing where you money has gone over the past 2 years. The plan is to use previous records to determine your budgeting plan for the future.

This step is extremely good and something we should all consider. Setting up a budget to track our income in the most basic and important step in starting on a quest for financial freedom. The only issue here is having 2 years of old records. If you do not have 2 years go with whatever you have to make estimates for the future.

Step 4 – Being responsible to those you love

In step 4 Suze talks about setting up your money so that it can help your loved ones if you were to pass away. The basic setup of this step tells you all about insurance, estate planning, trusts, and wills.

I find this step to be very important but it seems to be out of place. I think that before you can begin to plan for others once you are gone you need to get your own personal finances in order. If you do not get your own finances in order you won’t have anything to leave to your heirs and it will be useless. Steps 4 & 5 should be switched.

Step 5 – Being respectful of yourself and your money

Here Orman focuses on helping her readers sort through and organize their own finances. This chapter includes information on putting money towards retirement, eliminating debt, and many other things. Orman writes how taking control of your finances can make you feel a whole lot better about yourself.

This is another one of Orman’s best steps out of the whole book. This is the most important step in achieving financial freedom. Without the proper savings, debt elimination, and future financial planning people cannot even start to think about financial peace.

Step 6 – Trusting yourself more than you trust others

This step talks about how people should trust themselves over others when making financial and investing decisions. It says that people should always go with their gut-feelings too.

I find this step to be completely inaccurate. People should always seek out the proper advice about financial planning from experts and have all moves planned out rather than going with a gut-feeling at any moment. I think that all people should have a personal financial advisor to help them with their finance and investing decisions. It is important to note that a financial advisor is only an advisor and all final decisions should come from you.

Step 7 – Being open to receive all that you are meant to have

In this step Orman goes into detail about money not bringing happiness but the opposite being true. It also goes into detail about the joys of donating to charities.

Here Orman contradicts many statements from the earlier in her book. In earlier parts of her book she continually talks about happiness and feeling better about ones self but then says the opposite here. She says that you get happy first and then you achieve financial freedom. What does that even mean? The two are completely independent of each other in both ways.

Step 8 – Understanding the ebb and flow of the money cycle

Here Orman writes about how sometimes all the tough and bad times in our lives teach us really good lessons for our futures. She talks about how to make the most from our past failures to see success in the future.

I think that Orman hits the nail on the head with the accuracy of her statements but again, what does this have to do with the nuts and bolts of financial planning?

Step 9 – Recognizing true wealth

In the last step of Orman’s book she writes about how the real value in life does not come from money and wealth.

Again, I feel this section contradicts some of what Suze says throughout the book but I also think that it is very true.

Overall, Suze’s 9 Steps to Financial Freedom is an excellent book for people who want to learn about the psychology of money and want to change their mindset about it. It is more of a self-help book for these people.

Her books give very little true financial advising plans and there is not much mechanical substance to it. I would not suggest this book for people looking for the nuts and bolts about personal finance advising. For these people I would suggest something by a different financial advising expert.