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The Seven Stages of Money Maturity Author: George Kinder By Kiran Telang Slide 2 Authors Introduction George Kinder is recognised internationally as the father of the Life Planning movement. The Harvard educated Kinder is the founder of Kinder Institute of Life Planning. He has been a practising financial planner and tax advisor for over 30 years. Website : www.kinderinstitute.com 2 Slide 3 Idea Behind The Book Money can be seen as a place where our internal selves engage with the external world. If either side, internal or external, self or money- is slighted, the whole life suffers 3 Slide 4 Is it relevant to us as individuals What do we want to do ? Why do we behave the way we do? Are we focusing on the right things? (How much or what has money got to do with who I am?) 4 Slide 5 As planners Why is the client behaving in a certain manner Is there anything that we can do to change his behavior to his benefit- so he gets a better life and is better off financially The stickiness factor Charge for the depth provided in planning 5 Slide 6 Will Indians accept this kind of advisory service? 6 Slide 7 Seven Stages Childhood Innocence Pain Adulthood Knowledge Understanding Vigor Awakening Vision Aloha 7 Slide 8 Mahealani Sapolu Coming from an impoverished background. Fathers words on money- You get money by working very hard Motherss Views- You have to trust. When money is needed, it will come 8 Slide 9 Derrick King Middle Class upbringing. Fathers words- Money makes the world go around. When you get down to it, its a game. Its the way we tell who wins Mothers words- You have to take good care of your family. Thats all that matters. 9 Slide 10 Susanna Swartz Coming from affluent background. Fathers words- Money is one thing you will never have to worry about. Mothers words- None 10 Slide 11 Childhood-Innocence Beliefs that we hold dear no matter how untrue they are. Received from parents and environment when growing up. Affects all adult behaviour 11 Slide 12 The Traps We Set Overspending/hoarding Choosing between money and integrity Dread, panic and disempowerment around money Inability to attend to practical necessary financial tasks Getting swayed by get rich quick schemes 12 Slide 13 Wisdom of Opposites Time is money Child-time is for play A penny saved is a penny earned Penny pincher 13 Slide 14 Dont count your chickens before they hatch -A prudent, thoughtful approach to investing and saving will protect your nest egg -failure to take risks will cut you out of the most productive investments Money doesnt grow on trees -It takes work to get money -The most important things in life dont carry a price tag 14 Both sides of the belief Slide 15 Indicators of Innocence in Money Matters Resentment and Blame Conspiracy Oblivion and Addiction Magical thinking 15 Slide 16 The Bell of Awakening 16 Slide 17 Working on pain addresses many problems like Economic differences between colleagues and friends Difficult work situation Caught in the rat race Bouts of money anxiety Shutting down rather than facing money issues 17 Slide 18 Sources of Pain Childhood Pain: We are richer than some people and poorer than some. We will have to work for a living Envy,treachery, betrayal Adulthood Pain Loss of job Divorce Bad investments 18 Slide 19 The Cycle The cycle between innocence and pain-New innocent belief to counter it 19 Slide 20 Hell & the Human Condition Georges discovery that he needs to work for money Job=Pain (Father always working and not enjoying the nature) Made deal with wife-each one works for 2yrs When his chance came to work-thought of things like farming Chose tax consultancy as it is part time Belief 1:Job=losing life Way out=make job a part of your life Belief 2:relationship with soul is fine-making money got in the way. 20 Slide 21 Filling the hole Humanity and relationships are being replaced by things money can buy. We rush to fill our souls with accomplishments and acquisitions, perhaps neglecting more traditional ways of connecting. Pain is the energy that fuels the rat race 21 Slide 22 The Probable Solutions Pain is inevitable, suffering is optional Pain is a bell of awakening. If you become sensitive to it, you know whenever it rings, it time to wake up, do the work of adulthood and move toward freedom. 22 Slide 23 Knowledge Understanding Vigor 23 Slide 24 Adulthood Knowledge revolves on learning the specific, pragmatic and intellectual skills needed to handle money. Understanding concerns the heart; here we find ways to transform suffering around money. In Vigor we develop energy to actualize ourselves in the world, to make our dreams true. 24 Slide 25 Finding our Enterprise Adulthood we must turn inside to discover our purpose and strengthen our understanding. Resentment and blame, however, pull us outward; prompting us to look for a culprit in the exterior world to point as the cause of all our woe and suffering. 25 Slide 26 Three stages, one challenge Understanding what you want to do Having the knowledge to see it through Actually working to get it done 26 Slide 27 How you might retire in twelve years by saving 12% a year Successes and failures Reason for failures: Lacking insight into own emotions Lack of focus Lack of discipline 27 Slide 28 Mature people go beyond the simple notion of comfortable retirement to achieve a deeper sense of who they are, making themselves better people in the process ..and it all begins with Knowledge 28 Slide 29 Moneys Virtue 29 Slide 30 Two Layers of Knowledge Money speaks of human character Practical layer-developing skills needed to handle money 30 Slide 31 Moneys Virtue Money and integrity are intertwined You cant expect everyone else to have integrity and get away with cheating yourself Confucius says- its fine for a wise person to gain- provided the gain is right 31 Slide 32 Where freedom and Integrity Intertwine Knowledge is a step towards freedom Freedom not only in material terms, but knowing and living as our true selves Money should lead to freedom The Midas Touch Maintaining Integrity to escape the Midas trap 32 Slide 33 Planning, Props & Practicalities 33 Slide 34 The Components Budgeting (Mahealani) Goal Setting(Derrick King) Giving the children best education Keeping the marriage together Providing financial freedom for self Pathologies towards goal setting Inability to express goals Inability to execute a strategy Susanna: Getting professional help 34 Slide 35 The Deep Hearts Core 35 Slide 36 The difference understanding makes Innocence, pain and knowledge teach us to let go of old patterns and aquire skills Understanding changes our lives so that we experience the richness of money even in midst of the most difficult and painful situations in life 36 Slide 37 Understanding Letting thoughts go and letting feelings be The Observer The Kindly Mother The Warrior 37 Slide 38 Practice of Understanding in Work & Relationships Practice can be employed in any and every difficult situation. chronic over-spenders, self employed people who charge less than what the market will bear. 38 Slide 39 At Work The Client from Hell taught him more than anyone else about how to handle anger, frustration, annoyance, sadness, fright and despair 39 Slide 40 In Relationships Feel the feelings and accept themexperience them rather than pushing them awayno matter how difficult or frightening they are. 40 Slide 41 Lessons from the Wise Ones Practice of Understanding can come from mentors like osmosis. Who do you know whos a really a good person? Rather than looking at the world as a collection of people out to defraud us, we can treasure certain individuals we know are trustworthy. 41 Slide 42 Living Virtue Pay attention to what we do everyday and bring a consciousness of the consequences of our actions to bear on the choices we make This is what living virtue means 42 Slide 43 What motivates you to work? Money? Doing good? Making a difference? 43 Slide 44 A way of life that incorporates honesty, sincerity, integrity, trustworthiness, kindness and all other good qualities, builds Understanding as nothing else can. Living virtuously pays off. It ends the rat race and delivers a new freedom from care. 44 Slide 45 The strength to carry through Would those who say it cant be done get out of the way of those who are doing it 45 Slide 46 Vigor in the money world represents the energy to accomplish financial goals. It arises from the dream of freedom, the pinch of necessity and the desire to serve It is not simple busyness but springs from a profound inner aim- Lakshya 46 What does Vigor Mean Slide 47 What gets in the way? Blame & resentment Fear Dependency Self doubt Veering from our truth Reality v/s fantasy More money will solve my problem Procrastrination and lethargy Mere busyness 47 Slide 48 Paths to Vigor Eyes on the prize Doing the work you love The practice of letting thoughts go and feelings be Lessening depression Authentic relationships Finding your voice Eliminating dependencies and other vices An awareness of death 48 Slide 49 Paths to vigor Facing necessities Getting paid what you are worth Inspiring stories Keeping healthy One step at a time Dive right in 49 Slide 50 50 Slide 51 Seeing Far, Inside and Outside 51 Slide 52 The wise who are trained and disciplined Shine out like beacon-lights They earn money just as a bee Gathers honey without harming the flowers And they let it grow as an ant-hill slowly gains in heights With wealth wisely gained They use it for the benefit of all. 52 Slide 53 Varieties of Vision Spiritual/religious: Dalai Lama, Mother Teresa Community Visions: Martin Luther King Political Visions : Nelson Mandela, Abraham Lincoln Product: McDonalds, Walt Disney Artistic: Vincent Van Gogh 53 Slide 54 Vision is more active and community oriented aspect, Aloha is its quieter and more personal side Vision focuses our energy on a goal that reaches beyond our beings into a context larger than ourselves. 54 Slide 55 Cultivating Vision Seeing how you can integrate your visions with your routine George Kinder Tax returns calculations-seeing more than numbers to help people Art and literature and spiritual work- used in books and seminars 55 Slide 56 Its not what we do. Its how we do it. Each and every action of daily life performed with consciousness of human context and done with intention of helping others draws our vision into the world and makes it a better place. 56 Slide 57 Blessing, Pure and Simple 57 Slide 58 timepieces can be bought but not the morning. 58 Slide 59 Aloha is the humility, kindness and blessing that passes from one person to another. It lacks economic distinction. 59 Slide 60 In the realm of money we are too used to thinking that knowledge is everything, that money is simply about the facts of insurance, investments, budgets etc. But knowledge is uncertain, fragile and incomplete. Kindness though takes everything in. No matter how much you know or own, in the end all the rest falls away. Only kindness counts. 60 Slide 61 Aloha isnt a substitute of economic endeavor, but a part of it. Since every exchange of money is in fact a reciprocal giving of gifts, Aloha can be an inherent part of every financial dealing. When a client presents a difficult personal and financial problem to me, I look for a way to be giving and gracious, but I still charge for my consulting time 61 Slide 62 Mahealanis success Derrick and Alexandrias move Susannas lesson 62 Slide 63 63