“I've been reading a lot about inflation. Are there any additional strategies we should consider to protect ourselves?”

It's a good question—and certainly an understandable concern.

Whether it's groceries, insurance, healthcare, housing, or travel, just about everything seems to cost more these days. Even when inflation slows, prices generally don't return to where they were a few years ago. They simply increase at a slower pace.

Add headlines about government debt, federal deficits, and concerns about the long-term value of the U.S. dollar, and it's natural to wonder whether we should be doing something different with our money.

But before making major changes, it's important to understand that a well-designed financial plan already takes inflation into consideration. In fact, many of the strategies we use in managing investment portfolios are specifically intended to help preserve purchasing power over time.

And protecting yourself from inflation goes well beyond your investments.

Understanding the Real Impact of Inflation

Inflation is simply the gradual increase in the cost of goods and services. As prices rise, each dollar buys a little less than it did before.

For example, something that costs $100 today would cost approximately $134 in ten years if inflation averaged 3% annually. That's a meaningful increase, particularly for someone living on a fixed income or planning for a retirement that could last 25 or 30 years.

This is why inflation matters so much in financial planning. It's not enough for your investments to grow in dollar terms. Ideally, they need to grow enough to help maintain your purchasing power after accounting for inflation and taxes.

The challenge is that we can't predict inflation with certainty. Some years it will be relatively low. Other years, it may rise unexpectedly.

Rather than trying to forecast inflation, I prefer to focus on building financial plans that can adapt to different economic environments.

A Diversified Portfolio Is Your First Line of Defense

One of the most effective long-term strategies for addressing inflation is maintaining a diversified investment portfolio rather than holding too much money in cash.

Stocks are particularly important for long-term growth.

When I talk about investing in stocks, I generally don't mean buying individual company stocks. We primarily use broadly diversified, low-cost mutual funds and exchange-traded funds (ETFs). These investments allow us to own hundreds or even thousands of companies through a single fund.

When you invest in a stock mutual fund or ETF, you're ultimately investing in businesses. Over time, successful companies can increase prices, grow revenues, improve productivity, and generate higher earnings.

That ability to grow is one reason stocks have historically been an important source of long-term protection against inflation.

Of course, stocks don't outperform inflation every year. There will be periods when stock prices decline even as the cost of living continues to rise. But for money that won't be needed for many years, a diversified stock portfolio can provide an important opportunity for growth.

International diversification also plays a role.

We invest in international stock mutual funds and ETFs because we don't want our portfolios to depend entirely on the U.S. economy.

Owning companies outside the United States provides exposure to different economies, industries, and currencies. This can be particularly helpful when investors are concerned about a long-term decline in the value of the U.S. dollar.

International investments carry their own risks, but they provide another layer of diversification.

How Bonds Help Manage Inflation Risk

Bonds serve a different purpose than stocks. They generally provide income, stability, and diversification within a portfolio.

Just as we primarily use mutual funds and ETFs for stocks, we also use bond mutual funds and ETFs to invest across a diversified collection of bonds.

One important type of investment is Treasury Inflation-Protected Securities (TIPS).

TIPS are U.S. Treasury securities whose principal value adjusts with inflation. As measured inflation rises, the principal value increases, helping protect purchasing power.

We may use mutual funds or ETFs that invest in TIPS as part of a diversified bond allocation. It's worth remembering that TIPS funds can still fluctuate in value as interest rates change, so they aren't entirely risk-free.

Another option is Series I Savings Bonds, commonly called I Bonds.  Like TIPS, I Bonds are issued by the U.S. Treasury and are designed to provide inflation protection. Their interest rate includes an inflation component that adjusts every six months.

Unlike TIPS mutual funds and ETFs, I Bonds are generally purchased directly through the Treasury and held as personal savings. They have annual purchase limits, cannot be redeemed during the first 12 months, and carry an interest penalty if redeemed before five years.

For these reasons, I Bonds may be appropriate for a portion of longer-term savings, but they're not necessarily suitable for emergency funds that need to remain immediately accessible.

We also tend to emphasize shorter-term bonds rather than taking excessive interest-rate risk with longer-term bonds. Shorter-term bond funds generally experience smaller price fluctuations when interest rates change and can reinvest maturing bonds at prevailing rates sooner.

Finally, real estate and, in some portfolios, a modest allocation to gold can provide additional diversification. Neither is a guaranteed inflation hedge, but both can behave differently from traditional stock and bond investments under certain economic conditions.

Housing: An Often-Overlooked Inflation Consideration

Protecting yourself from inflation isn't just about investments. Your housing situation can also have a significant impact on your long-term financial security.

If you own a home with a fixed-rate mortgage, you already have a measure of inflation protection.

Your principal and interest payment remains the same even as the cost of living rises. Over time, inflation can make that fixed payment less burdensome in purchasing-power terms.

Of course, other homeownership expenses—including insurance, property taxes, maintenance, and utilities—can still increase.

For renters, particularly those living in high-cost areas such as the San Francisco Bay Area, inflation can present a different challenge.

Unlike homeowners with fixed-rate mortgages, renters may face substantial increases in their monthly housing expenses over time.

That's why it's especially important for renters to incorporate future rent increases into their financial plans. Depending on individual circumstances, negotiating a longer lease, evaluating alternative housing arrangements, or maintaining flexibility about where to live can help manage this risk.

And while purchasing a home may eventually make sense, buying simply because of inflation isn't necessarily the right decision. The costs of ownership, available savings, expected length of stay, and overall financial goals all need to be considered.

Your Spending Is One of the Things You Can Control

Perhaps one of the most overlooked ways to manage inflation is understanding where your money goes.

We can't control inflation, interest rates, or the financial markets. But we generally have more influence over our spending decisions.

Having a realistic budget—or simply a good understanding of your regular expenses—makes it easier to identify where inflation is affecting you most and where you have flexibility to make adjustments.

This doesn't mean eliminating everything you enjoy.

It means being intentional about your spending, periodically reviewing recurring expenses, and making sure your money continues to support the things that matter most to you.

Small changes can add up. Reviewing insurance premiums, subscriptions, utility costs, and other recurring expenses may uncover opportunities to save without meaningfully affecting your lifestyle.

Managing spending can also reduce the need to rely on credit cards or other consumer debt to cover everyday expenses—something that becomes especially important when interest rates are high.

Make Sure Your Cash Is Working for You

Cash deserves attention as well.

We want enough money available for emergencies and expenses over the next several years, but we don't necessarily want large amounts sitting indefinitely in accounts earning very little interest.

High-yield savings accounts, money market funds, Treasury bills, and short-term certificates of deposit (CDs) can all be appropriate choices, depending on when you'll need the money.

The objective isn't necessarily to earn the highest possible return on cash. It's to maintain safety, liquidity, and a reasonable return while avoiding unnecessary loss of purchasing power.

For money that won't be needed for many years, however, holding too much cash can create its own risk: inflation may gradually erode its value.

Should Inflation Change Your Investment Strategy?

This brings us back to the original question.

Should concerns about inflation, government debt, or the declining purchasing power of the dollar cause us to make major changes to our investments?

Generally, I don't believe they should—provided we already have a well-diversified portfolio appropriate for our goals, risk tolerance, and time horizon.

Making major investment changes based on economic forecasts requires getting two decisions right: knowing when to make the change and knowing when to reverse it.

That's much harder than it sounds.

Instead, I prefer portfolios that don't depend on any single economic prediction coming true.

We use diversified stock mutual funds and ETFs for long-term growth, bond funds and ETFs for income and stability, inflation-protected investments where appropriate, international investments for additional diversification, and sufficient cash for near-term needs.

Equally important, we regularly revisit financial plans to account for changes in spending, income, investment performance, and personal circumstances.

The Bottom Line

Inflation is a real concern, particularly for retirees and those approaching retirement. Even relatively modest increases in the cost of living can have a meaningful impact over time.

But responding to inflation doesn't necessarily mean buying gold, making major portfolio changes, or trying to predict the next economic downturn.

Often, the most effective strategies are the ones we've already incorporated into a thoughtful financial plan: diversification, disciplined investing, managing spending, keeping debt under control, and maintaining appropriate cash reserves.

No investment strategy can completely eliminate the effects of inflation. But we can prepare for it.

Good financial planning isn't about predicting exactly what inflation, interest rates, the stock market, or the dollar will do next.

It's about building a financial plan that can adapt and remain resilient through a variety of economic conditions.

If you have questions about inflation or how your financial plan is positioned, I'm always happy to discuss them with you.

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This article is provided by Attune Financial Planning for general educational and informational purposes only. It is not intended as personalized financial, investment, tax, or legal advice. Investment values fluctuate, and no strategy guarantees protection against inflation or investment losses. Please consult with your financial, tax, or estate planning professional regarding your individual circumstances before making financial decisions.

The stock market initially surged after the election as investors view a low taxes and business regulations favorably.  However, upon closer inspection, these proposed policies, depending on the degree they are implemented, could actually have a negative impact on the economy moving forward.  Now that the voters have spoken, what does this mean for the economy going forward and what can we do about it?

What Is The Potential Impact of Trump's Economic Agenda?

Taxes

The Federal Reserve began a course of reducing interest rates this year as inflation was finally brought under control.  However, the expected extension of the Tax Cuts and Jobs Act and further corporate tax cuts could potentially fuel increased consumer spending and drive the Markets upwards.  While this is a plus, this could cause inflation to increase again.  In turn, the Federal Reserve may pause their interest rate reduction strategy or even reverse course and increase interest rates once again to reduce inflation. In addition, large tax cuts without a corresponding increase in government revenue will increase government debt which drives up treasury bond rates. This does not bode well for ordinary working people because higher treasury rates results in higher interest rates on business, mortgage and auto loans.

Tariffs

While the economic results were mixed, Trump would like to double down on his tariff policy from his first term and impose a 10% to 20% tariff on all imports plus impose significantly higher tariffs on goods coming in from China.  The goal of this proposed tariff policy is to protect American jobs and industries.  Even if this tariff policy is fully implemented, it is uncertain if these goals will be achieved.  The more likely impact of this policy will be to worsen inflation as the higher costs that companies will incur due to the direct and indirect costs of tariffs tend to be passed down to consumers via higher prices.

Immigration

Labor is the driving force behind economic success in the U.S.  While illegal immigration must be brought under control, a mass deportation policy will leave a void in many sectors of the U.S. economy such as farming, construction, manufacturing, and hospitality to name a few.  A sudden labor shortage would be incredibly disruptive and drive up costs for most goods and services in the U.S. causing inflation to rise.  Furthermore, the price tag to implement this policy would be massive and incredibly complex to execute.  Therefore, most policy experts advocate comprehensive immigration reform instead.  Unfortunately, due to lack of political will, real immigration reform will not happen anytime soon. 

How Can We Insulate Ourselves from Economic Uncertainty?

As I illustrated above, the economic impact of the next president's policies is uncertain.  We may be headed for a stronger stock market due to lower taxes and pro-business environment.  It could also mean higher inflation and consumer prices.  How do we insulate ourselves during uncertain economic times?  In times like these, we should focus on what is in our control and remain true to our basic financial fundamentals.

Maintain adequate Reserves

To protect yourselves from sudden unexpected expenses or loss of income, strive to have an initial cash reserve equal to at least 3 months of expenses or 10% of your gross household income.  If You are a homeowner and still employed, you should strive to build a secondary emergency reserve equal to the greater of 20% of your household income or 2 years of mortgage payments. 

Focus On Savings

While you cannot control how the Markets will perform, you can control how much you save.  Strive to save at least 10% of your gross household income each year.  If you are working, contribute to your company retirement plan (401k/403b, etc.) to the full extent possible.

Live Within Your Means

To protect yourself from having to dip into your savings or incur consumer debt, strive to understand your household spending patterns and live within your means. 

Invest In Your Career 

For those of you that are still gainfully employed, take a step back and review our career and current job skills.  Is your company and / or job stable?  Make a goal to update and / or improve your job skills so that you remain relevant, promotable, and hirable.

Live a Healthy Lifestyle

As the saying goes, "Without health, nothing matters".  Nothing can derail a financial plan faster than long-term sickness or injury.  Each day strive to eat well, exercise, meditate, and relax.  Emotional, spiritual, and physical health are just as important, if not more important then financial health. 

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Most printers today provide the option of scanning your important documents so you can store them digitally on your computer.  But because of storage limitations and risk of losing data, a more popular option is storing digital information in the Cloud via the use of online storage services.

Here, we share a comprehensive guide on why storing documents digitally is beneficial, which financial documents you should back up, and why these backups are crucial for your financial future.

Why Digital Storage is Beneficial

Convenience

Digital backups are typically easier to create, store, and manage compared to physical copies. With digital backups, you can automate the process, schedule regular backups, and access your documents from anywhere with an internet connection.

Space-saving

Storing documents digitally eliminates the need for physical storage space, such as filing cabinets or shelves. This can be particularly beneficial for individuals or businesses dealing with a large volume of documents.

Protection from Physical Damage

Paper documents are susceptible to damage from fire, water, pests, and other environmental factors. Digital backups, stored securely online or on external drives, protect your documents from physical harm.

Security

Digital backups can be encrypted and password-protected, providing an additional layer of security against unauthorized access. Advanced security features, such as two-factor authentication and encryption protocols, can further safeguard your documents.

Ease of Access and Sharing

Digital backups allow for quick and easy access to your documents from any device with internet connectivity. Additionally, you can easily share digital documents with others via email, cloud storage services, or collaboration platforms.

Version Control and Recovery

Digital backups often include version control features, allowing you to track changes and revert to previous versions if needed. This can be invaluable in situations where documents are accidentally modified or corrupted.

Disaster Recovery

In the event of a disaster, such as a hardware failure or cyber attack, digital backups enable swift recovery of your important documents. Cloud-based backups offer off-site storage and redundancy, reducing the risk of data loss.

Cost-effectiveness

While there may be initial costs associated with setting up digital backup systems, they are generally more cost-effective in the long run compared to maintaining physical storage infrastructure and replacing damaged or lost documents.

What Documents Should You Store  Digitally?

Personal Identification Documents

Passport and Driver's License

Copies of your passport and driver’s license are essential for various financial transactions, including opening bank accounts and applying for loans. In case these physical documents are lost or stolen, having digital copies can expedite the recovery process.

Social Security Card

Your Social Security card is a crucial piece of identification. A digital copy can help you quickly prove your identity in various situations, from job applications to financial transactions.

Income and Employment Documents

Tax Returns

Backing up your tax returns is essential for future reference, especially when applying for loans, mortgages, or financial accounts. Digital copies make it easy to retrieve specific information when needed. When it comes to taxes, it’s best to keep any tax records for at least seven years and tax returns for one year.¹

Pay Stubs

Keep digital copies of your pay stubs to track your income, deductions, and contributions to retirement accounts. These documents also serve as proof of income for loans and rental applications.

Employment Contracts

Save copies of your employment contracts to reference terms, conditions, and benefits. This can be crucial for legal matters or negotiations if needed.

Banking and Financial Statements

Investment Statements

Maintain digital records of investment portfolios, including statements from brokerage accounts and retirement funds. These documents are vital for assessing your financial growth and planning for the future.

Loan Agreements

Save digital copies of loan agreements, including mortgages, car loans, and personal loans.² This ensures easy access to terms, interest rates, and payment schedules.

Insurance Documents

Health Insurance

Back up health insurance policies, benefit summaries, and coverage details. This is crucial for medical emergencies and filing insurance claims.

Life Insurance

Save digital copies of life insurance policies, ensuring beneficiaries have easy access to the information in the event of the policyholder’s passing.

Property and Auto Insurance

Keep digital records of insurance policies for your home, car, or any other valuable assets. This aids in the swift processing of claims in case of accidents or disasters.

Wills and Trusts

Back up your will and any trust documents to ensure that your wishes are carried out. This is crucial for the distribution of assets and the well-being of your loved ones.

Power of Attorney

Save digital copies of documents granting power of attorney to a trusted individual. This ensures that someone you trust can manage your financial affairs in case of emergency.

Safeguarding your financial documents is not just a matter of convenience but a fundamental element of a secured financial plan. By backing up the information mentioned above, you are taking proactive steps to protect yourself and your loved ones.

This post will guide you through the process of checking in on your annual financial goals, evaluating your performance over the past year, and setting meaningful goals for 2024.

How to Revisit Your Annual Financial Goals

Let’s go over some steps to take as you evaluate your 2023 financial goals.

Review Your Initial Goals
Start by revisiting the financial goals you set for yourself at the beginning of 2023.  These goals could include paying off credit card debt, saving for the down payment on a new home, investing for retirement, or making much needed home improvements.

Assess Your Progress
Then evaluate how much progress you made toward each goal. Did you achieve them, partially achieve them, or fall short?  Be honest with yourself, as this assessment will form the basis for your financial reflections and goal setting for the upcoming year.

Consider Unexpected Financial Events
Consider any unexpected financial events that may have occurred during the year. These could be positive, such as unexpected windfalls or promotions, or negative—for example, unexpected home repairs, medical payments, or car accidents.  These events can have a significant impact on your financial journey and should be factored into your analysis.

Analyze Your Budget
Review your budget for 2023.  Were you able to follow it closely?  Identifying areas where you overspent or underspent can help you make more informed decisions for the future.

Judge Your Financial Performance

Now that we’ve gone over how to revisit what happened in 2023, let’s look at how to judge your financial performance.

Ask Yourself the Tough Questions
To effectively judge your financial performance over the past year, ask yourself these important questions:

• Did I increase my net worth this year?
• Did I reduce my debt, if applicable?
• Did I save and invest according to my financial plan?
• Did I achieve my short-term and long-term financial goals?
• Did I maintain an emergency fund?
• Did I contribute to my retirement accounts?
• Did I manage to stay within my budget and control my spending?
• Did I make progress toward achieving financial independence?

Quantify Your Achievements
Use measurable metrics to quantify your financial achievements. For instance, calculate your net worth, total debt reduction, savings rate, and investment returns. Having concrete numbers will give you a clear picture of how well you performed in 2023.

Reflect on Non-Monetary Achievements
Don’t forget to reflect on non-monetary achievements as well. Did you learn more about personal finance? Did you develop better financial habits? Did you make strides in improving your financial literacy? These non-monetary gains are crucial for long-term financial success.

Setting Goals for 2024

Lastly, set your goals for 2024 so you can start the new year off right.

Identify Your Priorities
Begin by identifying your financial priorities for 2024.  Are there any outstanding goals from 2023 that you want to roll over into the new year?  Additionally, consider new objectives that have come up in 2023 that you would like to pursue next year.

Make SMART Goals
SMART goals are Specific, Measurable, Achievable, Relevant, and Timely.¹  Ensure that your goals for 2024 adhere to these criteria. For example, instead of saying “I want to save more,” you could say, ‘I will save $10,000 for a down payment on a house by December 31, 2024.”

Create a Detailed Plan
Develop a detailed plan for each of your financial goals. Break them down into smaller, actionable steps that you can track throughout the year.  This will help you stay motivated.

Adjust Your Budget
If your financial goals for 2024 require adjustments to your budget,  make those changes early in the new year.  Allocate financial resources strategically to ensure you’re on track to meet your objectives.

Monitor and Adapt
Regularly monitor your progress throughout the year.  Make adjustments as needed, and don’t be discouraged if things do not go according to plan.  Financial journeys rarely follow a straight path, and the ability to be flexible and adapt are the keys to success.

Reflecting on your financial journey in 2023 and setting goals for 2024 is a valuable exercise to your financial well-being.  It allows you to take control of your financial destiny, learn from past experiences, and make informed decisions for the future.

1. Clean Up Your Spending

Whether you call it a budget or a spending plan, you only need to look in the rearview mirror over the past few months and write down your repeating bills and expenses. When you inventory those expenses, assign a priority number from one to three, with one being expenses you must meet to avoid being evicted from your home and three being rather nice to have, but you could live without. Clear out or reduce drastically your level three expenses. For example, that $70 cable bill is a great candidate for your first cut. Try less expensive streaming services.

2. Clear the Decks and Put Your Savings on Autopilot

That 50 bucks a month you recouped by disconnecting your cable service can now be redirected automatically to your emergency fund. If you don’t have an emergency fund to cover at least six months' expenses, you could literally be one or two paychecks away from disaster.

3. Review Your Tax Withholding

You’re looking forward to that big tax refund this year. However, what you have actually done is given the U.S. Government a 12-month interest-free loan. Give it to yourself as a monthly upfront paycheck increase. Adjust your withholding for a better balance and slide that extra money into savings or another investment plan.

4. Inventory Your Material Wealth

Dedicate an hour or two to photographing and cataloging your household possessions. Concentrate on big-ticket items like your furniture and expensive electronics. Write out the approximate amount you paid and when you purchased the piece. As you bring new items into your home, save the receipts and update your inventory.

5. Check Into Your Renter or Home-Owner Insurance

Your spring cleaning should include a complete insurance check-up. Go to your insurance files and this time really read the fine print. Is your coverage adequate to replace everything you inventoried after you followed suggestion #4 above? If you own your home, you probably know that replacement costs have risen everywhere. Make sure you're covered.

Also, it wouldn’t hurt to check and possibly upgrade your life insurance, especially if your family has grown or your income has gone up.

6. Plug Into Technology

Let the free and secure technology of your online banking platform keep you on the straight and narrow. Most banking sites have the settings you need to do what you wouldn’t do for yourself. Want to receive a warning when your account balance gets too low or your credit card spending is over a set amount? Your bank can do that via email or text message. 

7. Get Your Paper Files in Order

For the financial papers you must keep, devise an orderly filing system. If you’re after a more simplistic method, head to your office supply store and buy an expandable folder with month separator tabs. Stash the papers you usually throw away each month in the appropriate month of the folder. 

Finally, remember that bad financial habits come from neglect and passive spending decisions. Spring is the ideal time to get back in the driver’s seat and reacquire the big picture. Clear out the clutter and do away with what is not working for you.

1.    Mindfulness means being present

We hear the term “mindfulness” more and more these days but what does it mean?  Mindfulness is the basic ability to be fully present, aware of where we are and what we are doing, and not overly reactive or overwhelmed by what’s going on around us.  By being fully present, we become calmer, less concerned about what’s up next, and less stressed about life.  For me being present can be compared to tires and shock absorbers on a car.  The tires and shock absorbers are always in contact with the road and responding to the obstacles it faces.  When things work as they should, you have a smooth ride. When they don’t, your ride becomes less enjoyable.  Being present provides us with the ability to roll with the obstacles that we face and calmly face them without getting too high or too low in the process.  It is important to not only be present for ourselves but be present for others as well.  One of the greatest gifts we can give to someone is our time and attention.  Whatever our present interaction is, whether it is with our friends, family, co-workers, or children, we should eliminate all other distractions and make that moment the most important time we have.  They will appreciate it very much because they will feel heard and listened to.  

2.    Mindfulness means breathing

Being present requires us to do one simple thing:  breathe.  Breathing is an involuntary muscle response so we do not have to consciously think about it.  However, when we our anxious, our fight or flight instinct is activated and our breathing slows down considerably which can lead to further anxiety.  However, when we practice focused breathing, the opposite happens.  We become calmer, more relaxed, and less anxious.  Whenever we feel our anxiety begin to swell up, we should do the following:  Stop what we are doing, close our eyes if we can, sit if possible, and do this:  take a deep inhale through our nose and exhale deeply through our mouth.  Repeat this action four times.  Doing this breathing exercise when we are excited or anxious will allow oxygen to flow to our brain,  cause our heart rate to slow, calm our nerves, and allow us to think more rationally and clearly.

To take our breathing to an even higher level, we can practice mindful meditation for a few minutes a day while focusing on our breathing.  This can be done by simply sitting comfortably in a chair or on the ground, focusing our gaze a few feet in front of us, allow ourselves a few moments to relax, then slowly breathe in through our nose and out through our mouth.  To keep our mind from wandering, count to 4 in your head when breathing in and out.  Try this for 3 minutes per day then gradually increase the time as you become more comfortable.   Focused breathing and daily meditation can lead to a peaceful sense of calm and clarity of purpose in our lives.

3.    Mindfulness means living life with intention

An intentional life is one that is focused on finding balance, meaning and purpose.  In the world of financial advice, there is a tendency to focus too heavily on wealth accumulation and too little on happiness accumulation.  Yes, a certain amount of money is necessary to put food on the table, pay our bills and to live comfortably.  Beyond that, how much is enough?  By asking ourselves what makes us truly happy, we will eventually find the answer as to how much money is truly enough.  In the search for happiness, a clearer sense of purpose will develop within us which in turns leads to a more meaningful and fulfilled life.  

4.     Mindfulness means being attentive

By being more present, focusing on our breathing, and living life with intention, we become less emotionally reactive to events in our lives and will be better able to control how we interact with people and respond to events throughout our day; thereby reducing our stress levels and becoming more present.  When we are attentive, we are more focused and aware of what is happening in the here and now.  If a co-worker does something kind for us, do we notice it and reciprocate the kindness?  If a friend wants to talk to us about something that is worrying them, do we take time to stop what we are doing, give t hem our full attention and truly listen to what is on their mind?   If our child does something we disagree with, do we react with anger because our ego was hurt or do we act with compassion so we can have a teachable moment?  Being attentive is the act of living with intention.

5.    Mindfulness means being kind

All these principles put together allows us to be kind to ourselves and to one another.  More often than not, we are our own worst enemy.  We beat ourselves up for the things we did or didn’t do in life.  Being mindful means understanding that we aren’t perfect and we will always be a work in progress.  When we are mindful, we become more open, compassionate, and forgiving towards others as we seek to understand rather than protect our own egos.

Living a more mindful life doesn’t come easily nor does it happen overnight.  It takes time, patience, and the ability to be kind to yourself.  Approach mindfulness with a beginner’s mind and allow yourself to enjoy the journey.  I myself have only just begun my mindfulness journey and I know it will take a lifetime for me to achieve it.

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This content is developed from sources believed to be providing accurate information and provided by Attune Financial Planning.  It may not be used for the purpose of avoiding any federal tax penalties.  Please consult legal or tax professionals for specific information regarding your individual situation.  The opinions expressed and material provided are for general information only.

Why Do We Celebrate Labor Day?

The first Labor Day holiday was celebrated on Sept. 5, 1882 in New York City, in accordance with the Central Labor Union to celebrate workers' contributions to the well-being of our country and the economy. Many years later, on June 28, 1894, President Grover Cleveland signed a law to make Labor Day a national holiday.¹ Now, the first Monday in September is annually dedicated to the hard work and achievements of American workers.

Improving Your Work-Life Balance

It's strange to think about it now, but in the late 1800's, prior to the enactment of labor laws designed to protect the American worker, the average American worked 12-hours a day and seven days a week and barely made a living doing so.  Even children as young as 6 years old worked in mills and factories¹.  Over one hundred years later, our working lives have drastically improved but a great number of us find it difficult to achieve adequate work-life balance.

We all know how it feels to be overwhelmed by work, and sometimes it can seem like it’s taking over your life. Especially if you own a small business or are still working from home due to COVID, it’s easy to feel pressured into making your job your everything. If you find yourself working overtime and constantly thinking about work, it’s time to evaluate how you can change your habits to have a more balanced life.

Plan for Personal Time

Set aside some time for you to do something for you. Whether that is going on a hike, reading a book or just unwinding by watching a movie, do something small that makes you happy every day. 

Let Yourself Unplug

Stop checking work emails during all hours of the day. Instead, communicate with your colleagues and customers so they can know when you’ll be working and when you won’t be available to respond. Creating, communicating and abiding by these boundaries is crucial when it comes to maintaining a work-life balance. Take a few hours each day to shut off your phone and enjoy the moment.

Prioritize Your Health

Keep yourself physically, emotionally and mentally healthy by taking steps to put your health first. Eat healthy meals, especially breakfast before work, sleep at least seven hours each night and schedule time into your day to exercise and move your body. These practices will help you to be more energized and productive while boosting your immune system and overall mood. Running yourself ragged will only push you closer to burning out, which can be hard to recover from.

Invest in Relationships 

Don’t let work keep you from your loved ones. Plan for quality time with your family and friends, even if you live with them. Make room in your schedule to see loved ones throughout the week when possible, not just on the weekends. 

Leave Work at Work

With some of us working remotely, this can be easier said than done. Wherever you spend your time working, make it a point to stick to your scheduled work hours and have a designated workspace. Making plans for shortly after your workday ends could help you to stop working for the day and get on with the next activity.

Creating a work-life balance doesn’t just happen overnight, you need to gradually integrate these healthy habits into your life. Let yourself have fun, relax and prioritize yourself and your personal relationships. You may even see your work and productivity benefiting from these changes. Enjoy your Labor Day weekend, and  make your health and happiness a top priority in your life.

Below are some of the factors that have contributed to an increase in travel and how different industries are responding to it. 

COVID-19 Vaccine and Traveler Comfort 

The trends that impact a person's willingness to travel can be directly tied to two factors. First is the administration of the COVID-19 vaccine. In fact, according to the CDC, approximately 39 percent of the U.S. population was fully vaccinated as of May 2021.¹ Second is the CDC’s reduced travel restrictions within the United States for those who are fully vaccinated.² 

Both of these factors are contributing to the types of travel people are willing to take. According to a study from Deloitte, 54 percent of travelers are comfortable staying in a hotel, compared to 44 percent taking a flight or 35 percent attending an in-person event.³

With this in mind, let's examine some of the impacts these trends have had on specific sectors of the travel industry. 

Airlines

Since the start of 2021, interest and comfort in flying have steadily increased from 29 percent to 44 percent of individuals.³ Furthermore, the number of individuals passing through TSA has gone up significantly, from around 100,000 people a day in April 2020 to over 1 million people per day in April 2021.⁴  While this is a huge increase, the number of people flying is much lower than in 2019 where over 2 million people passed through TSA per day.⁴   

Comfort and the increased number of travelers have also affected the way airlines are beginning to respond. For example, Delta Airlines stopped blocking off the middle seat of their flights at the beginning of May 2021.⁵

Another big difference to consider is domestic versus international travel. As of April 2021, 36 percent of individuals plan to fly domestic, while only 21 percent plan to fly internationally.³ This, along with the data above, indicates that individuals are becoming more accustomed to the idea of flying, but would be more comfortable with a flight within the United States. 

Car Rentals

Avoiding large crowds and staying isolated makes a road trip an ideal alternative. However, individuals may find this difficult or more expensive than expected. Some car rental companies sold portions of their fleets in response to economic challenges created by COVID-19.⁶ Furthermore, the Bureau of Labor Statistics reported a 16.2 percent increase in car and truck rental costs for April 2021.⁷ Rental cars are an in-demand item, and you should be prepared to pay a premium on them this year.

However, this does not mean that road trips are out of the question. Around 49 percent of individuals plan to book a hotel in the next three months.³ 

Cruises

Cruises remain the least likely to see improvement during summer. Not unsurprisingly, only 19 percent of individuals plan to take a cruise in the next three months.³ This, coupled with the challenges of 2020, means the cruise industry may continue to face economic difficulties throughout the remainder of 2021.

The travel industry is recovering from the economic downturn of 2020. And though the industry is experiencing growing demand as we near a post-pandemic world, it is nothing close to what it was in 2019 and prior years. Those planning to travel should remain up-to-date on guidance from the CDC and review the U.S. Department of State’s information and travel restrictions before finalizing their plans.

The growing demand for travel will impact the prices of everything from plane tickets to car rentals and hotel stays. The exact amount will depend on the location and time of your trip. Be sure to enforce CDC safety restrictions, and keep the information above in mind as you go off on your 4th of July trip and / or plan your summer vacation. 

Basics #1: Debt & Credit Scores

Understanding the ways in which credit or debt can work with or against you should serve as the foundation of your financial knowledge. First and foremost, it's not wise to avoid credit or debt altogether out of fear or intimidation. Instead, it’s important to have a firm grasp on your financial standing and a plan for tackling debt responsibly.

Debt

When used correctly, debt can be useful. But when misused, it can spiral out of control fast. Missed payments can build up interest or penalties and may impact your credit score in a negative way. Debt that is managed responsibly can help you reach important goals like buying a car, purchasing a home, going to college, starting a business and more. 

Credit Score 

Your credit score is one of the factors lenders use to evaluate your trustworthiness and qualification for mortgages, auto loans and other lending opportunities. Landlords and employers may also check your credit before renting to you or offering you a job. Your credit score is dependent on a number of factors including previous credit history, current debts, history of payments and more.  In other words, the better you are able to manage your debts and pay it off consistently and on time, the higher your credit score.

Basics #2: Interest

There are two sides to interest that can make it a tricky concept to grasp - interest that grows because of your debt and interest that grows  as a result of your savings.

When you take on debt (like credit card debt, an auto loan or mortgage), you’ll be responsible for paying back both the original amount that you borrowed and the interest on the loan. The interest is how a lender makes money on the loan and provides the borrower with an incentive to pay the loan back in full and on time. 

When you have a savings account that pays you interest, the interest earned gets added to the original amount you deposited. Then, interest is earned on the new, larger principal, and the cycle repeats. This is called compounding interest, and it can be an integral part in growing your retirement savings - as the longer the interest has to compound, the greater the savings will grow. 

Basics #3: The Value of Time

As a general rule of thumb, it’s never too early to start saving - for retirement, homebuying, a child’s education or whatever could be coming down the line. The earlier you start saving, the more you’ll be able to tuck away over time - especially with the power of compounding interest. This leverages the value of time to your advantage.

Basics #4: Inflation

Inflation has the potential to eat away the purchasing power of your money. That means, with inflation, the dollar you earn today may not be worth a dollar in the future. Below are two important concepts to remember regarding inflation.

Cash in a Mattress

Keeping all your cash under a mattress is not only unsafe, it literally costs you money. Assuming the annual rate of inflation is a hypothetical two percent, every dollar you keep under your mattress and not earning interest would shrink in value to $.98 next year.

Rate of Return

Because inflation erodes the purchasing power of your money, any returns you earn on your accounts may not be the “real” rate of return. If your account earned a hypothetical six percent rate of return over the last year, but inflation was 1.5 percent, your real rate of return was 4.5 percent.

Basics #5: Identity Theft & Safety

Especially as the world shifts to doing everything virtually, identity theft remains one of the biggest threats to financial and personal security. A cracked password or misplaced Social Security number can have big consequences on your current and future finances.

The common wisdom is to use a unique password for each site or service you use. A password manager can make this easier by generating and storing strong passwords automatically.

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This content is developed from sources believed to be providing accurate information, and provided by Attune Financial Planning and Twenty Over Ten. The opinions expressed and material provided are for general information only.

Giving a hand to your adult children might be as innocent as covering their phone bill, or it may be as extravagant as contributing to a down payment for a new home.  As children transition into adulthood, many may be hard-pressed to find a parent who loses the desire to support their kids, both emotionally and financially. This is why it can be so hard to wean your adult children off of your bank account.

If you’re helping out your kids into adulthood, you’re not alone. A 2018 Pew Research Center found that only 24 percent of young adults were financially independent by age 22 or younger, compared to 32 percent in 1980.¹ While one can consider parental financial support a hindrance to one’s ability to become fully self-sufficient, there is another grave side-effect: your ability to adequately save for your own retirement. 

So how can you help your children become financially independent? Ease the process with the four suggestions below.

#1 Be Transparent in Your Communication

When first letting your children know that you will no longer pay their phone bill, help out with groceries, or give them a generous Christmas gift, make sure to properly explain why. Remind them that this is not about your lack of care or love for them, but rather it is for their long-term benefit and ability to provide for themselves, long after you’re gone. 

Let them know that it may affect your ability to retire comfortably and to cover potential health costs in the future. By appealing to their compassion and treating them as fellow adults, you can actually give a sense of empowerment to your children.

#2 Give Your Children an Adequate Timeline 

If your kids are used to a monthly allowance, phone support, or help in purchasing big ticket items, it can be a shock to immediately cut off the financial supply. Giving your children time to organize their finances and emotionally prepare to fully support themselves is one way to lead them towards successful financial independence. 

In addition, giving them a timeline creates an objective boundary that might be hard to set otherwise. If you wait until you think your kids can handle it, or until you feel “ready,” the time may never come. Choosing a date and sticking to it puts the decision in stone and makes it easier to follow through.

#3 Provide the Tools to Succeed

Educating your adult children on best practices for managing their money can increase their confidence while giving them the means to budget, spend and save properly. You can give them advice on your own or point them towards a financial planner, which has various benefits. If it’s your own financial advisor, he or she can explain how your financial support can be detrimental to your retirement and well-being, which can give your kids more clarity on the situation.

Having an objective perspective can take the emotion out of the decision, making it more of a logical next step. A financial planner can also assist your kids in organizing their finances and give them a head-start on becoming financially literate.

#4 Prepare to Still Feel Responsible

As you put a stop to financially supporting your kids, you may still have a strong desire to help them out. The first step towards dealing with these emotions is to expect that they may come up, but prepare yourself to avoid reacting. Even if your adult child struggles trying to figure out how to afford certain expenses, it is ultimately this difficulty that can lead to growth on their end. When faced with financial realities, it will likely motivate your children to prepare, save and budget more diligently. 

Putting an end to financially supporting your adult children isn’t easy, especially with regard to current financial hardships. With 54 percent of young adults dealing with education debt, it can be emotionally difficult not to offer assistance if your kids are struggling.² However, by easing your adult children into independence and preparing them with the tools to effectively manage their money, you can smoothly move towards a healthier financial state for both you and your kids.

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1. https://www.pewsocialtrends.org/2019/10/23/majority-of-americans-say-parents-are-doing-too-much-for-their-young-adult-children/
2. https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-student-loans-and-other-education-debt.htm

This content is developed from sources believed to be providing accurate information, and provided by Attune Financial Planning and Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information only.

Then the Covid 19 pandemic happened.  At first, we thought this was no big deal.  Just like Sars or the Swine Flu, this outbreak would also pass. Our Government would lead us through this crisis.  But suddenly, our lives seemed to just stop.  The economy shut down.  We were on lock down.  We had to stay home.  Masks and social distancing became the norm.  People started losing their jobs.  Our society was facing a crisis the world has not experienced since the 1918 flu pandemic.  Not to be outdone by the pandemic, our national Government made things worse by sending out mixed messages.  Phrases like “it’s a hoax”, “masks don’t work”, “it’s nothing more than the flu”, only added to the collective stress and our feeling that this situation was not getting better.  Instead of working together to defeat the virus, America was fighting with itself.  Federal government vs State government.  Republicans vs Democrats.  Mask wearers vs non-mask wearers.  Science vs conspiracy theories.  While all of this bickering was going on, people were getting sick and dying at an ever increasing rate.   A feeling of sadness, dread, and hopelessness seemed to permeate all discussions and interactions.  Oh, on top of everything else, this was an election year.  We had to live through the campaign rhetoric, the debates, and finally the election.  Just when we thought it was over, it wasn’t.  Joe Biden won the election but the President said if it wasn’t for “massive” voting fraud he would have won. He was cheated out of his election victory.  The Courts concluded there was no evidence of voter fraud but by then it was too late.  The President created another unnecessary fight between those who falsely claimed the vote was “rigged” and those who defended the legitimate voting process.  When will all of this this end?

When I speak to people about how they are feeling, the common response has been, “I’m managing but I’m feeling stressed”.  After the year we’ve been through how could we not be stressed?  While reducing the amount of stress in our lives during this time can be extremely difficult, there is a way that we can.

Throughout 2020, I’ve found that one of the best ways to reduce stress and anxiety is to practice mindfulness.  Being mindful means to live in the present moment.  Often times stress is caused by worry.  Obsessing about or living in the past causes stress.  Worrying about the future and fretting about things you cannot control also causes stress.  When we are mindful, we let go of the past and do not dwell in it.  When we are mindful, we recognize that the future is unknowable and out of our control.  When we are mindful, we are focused on the here and now.  This might sound little far-fetched but believe it or not, mindfulness can be done easily and as part of your daily routine.  

Below are three tips that I’d like to share with you on how to incorporate mindfulness in your daily life that will help you relieve your stress:

Tip #1:  Meditate Regularly

Mindfulness is practiced through meditation.  I suggest that you start of each day by meditating for three to five minutes.  Find a comfortable chair, sit still, and stare slightly downward.   Take a deep breath in through your nose then slowly breathe out through your mouth.  Do this while keeping your mind as empty as possible.  To help you stay focused, say “I am calm” to yourself when you breathe in.  When you breathe out, say “No more worries” to yourself.   You are breathing in positivity and breathing out negativity.  At the end of this three to five minute session, you should feel a sense of tranquility and will be better equipped to take on your day. You can practice this anytime of the day whenever you are feeling stress or overwhelmed.  Ideally build a meditation schedule where you meditate in the morning and before you go to bed.  As you get more comfortable, you can increase the time you meditate to 10 minutes or more.

Tip #2:  Exercise with intent

Mindfulness can also be practiced through exercise.  If you are like most people, you have probably grown accustomed to exercising with earphones on.  This is great and make exercising less boring and makes the time go by faster.  While I don’t recommend that you abandon this method, I do recommend that you add two to three days of walking, jogging, or cycling (outdoors preferably) without your earphones on.  Instead use this time to focus on yourself.  Just like when you meditate, focus on your breathing only. Relax your mind and remove all thoughts that you are having.  This is the time to fully disengage from the noise and be in the moment.  While you are at it, take it down a notch.  Relax and enjoy the moment.  Relieve yourself of the pressure to do your personal best.  The optimal time to exercise is in the morning before you start your workday.  You will find that after you exercise, you are calmer, more focused, and relaxed.  

Tip #3:  Sleep well

Mindfulness can also be practiced while we are sleeping.  You should strive to get around 8 hours of sleep each night.   Sleeping improves your immune system and gives your brain the rest it needs.  However, with our elevated stress level, getting an adequate night’s rest is easier said than done.  Sleeping, like meditating or exercising, becomes easier when you set good habits.  First of all, condition your body to go to sleep around the same time each night.  So, if you need to wake at six am, make a habit of going to bed at 10:00 pm each night.  This doesn’t mean you jump in bed at 10:00 pm.  This means, lights out at 10:00 pm.  Because most people do not fall asleep the minute their head hits the pillow, I recommend going to bed 15 to 30 minutes early.  Relax your mind and body by reading a book rather than looking at your electronic device.   Reading helps calm the mind while looking at your phone stimulates the brain and actually keeps you more awake.  When you finally do turn out the lights, I recommend you do a few meditative breathing exercises.  Inhale deeply through your nose, and exhale through your mouth.  Do these five to ten times.  You might surprise yourself and fall asleep before the tenth time!  The reason for the breathing exercise is to help you relax.  Lastly, I recommend that you remove all electronics from the bedroom like your phone and iPad before you go to bed.  This will help remove the temptation of looking at your device should you wake up in the middle of the night.  If you do get up and can’t get back to sleep, try doing a few deep breathing exercises.  If you still can’t’ sleep, get up and read a book until you become drowsy again.  Tossing and turning will only further elevate your anxiety and make falling asleep even more difficult. 

This year will truly be a year to remember as it has heightened everyone’s anxiety and stress level.  While many things are out of our hands, practicing mindfulness is a way for us to maintain control of our emotions and how we react to our environment.  Along the way we can also find inner peace and happiness.

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This content is developed from sources believed to be providing accurate information, and provided by Attune Financial Planning. The opinions expressed and material provided are for general information only.

I’m sure your images of Thanksgiving and what it means to you are similar to mine.  That is why Thanksgiving holds such a special place in the hearts of all Americans.   The thought of not being able to be with family and loved ones can be painful and heartbreaking; especially if it the only time all year that you are able to see everyone you hold dear in one place.  Gathering with loved ones is why Thanksgiving has traditionally been the busiest time to travel.  Covid-19 has severely upended this tradition and has forced all of us to think seriously about how we will plan to celebrate Thanksgiving this year.  

Choosing to travel during these unprecedented times is a personal decision and we all have to weigh the benefits of being with our loved ones versus the risks of contracting the virus while travelling.  Given the surge in the spread of cases and the number of deaths that Covid-19 has caused, we should take all necessary precautions and be prudent about travelling.  According to Johns Hopkins University, more than 250,000 people have died from Covid-19 in the United States, more than 11.5 million people have been diagnosed with the virus, and The United States has set several new daily records for hospitalizations.  Dr. Henry Walke, on a call with NBC news on November 19^th advised that people not travel on Thanksgiving and to stay home this year to help stop the spread of Covid-19.  He stated on the call, "It's not a requirement. It's a recommendation for the American public to consider. Right now, especially as we're seeing this sort of exponential growth in cases, and the opportunity to translocate disease or infection from one part of the country to another, it leads to our recommendation to avoid travel at this time."

Should You Travel for Thanksgiving?

While we are all encouraged to stay home for Thanksgiving, the CDC recommends that you ask yourselves the following questions before you decide to travel:

1. Are you, someone in your household, or someone you will be visiting at increased risk for getting very sick from COVID-19?
2. Are cases high or increasing in your community or your destination? Check CDC’s COVID Data Tracker for the latest number of cases.
3. Are hospitals in your community or your destination overwhelmed with patients who have COVID-19? To find out, check state and local public health department websites.
4. Does your home or destination have requirements or restrictions for travelers? Check state and local requirements before you travel.
5. During the 14 days before your travel, have you or those you are visiting had close contact with people they don’t live with?
6. Do your plans include traveling by bus, train, or air which might make staying 6 feet apart difficult?
7. Are you traveling with people who don’t live with you?

If you answered “yes” to any of these questions, the CDC recommends that you should consider altering your plans.  You might want to consider having a Thanksgiving celebration with your household members only and invite other family and loved ones to join you virtually.

Things to Consider if You Decide to Travel for Thanksgiving

If your circumstances dictate that you should travel and / or made the decision that the risks are minimal to you and your family, you should take the following steps before you do travel:

1. If you are traveling by air, get tested with a viral test 1-3 days before getting on a plane and plan to get tested with a viral test 2–5 days after your flight. Testing 1-3 days before and 2–5 days after travel may reduce the risk of getting and spreading COVID-19.
2. Check travel restrictions before you go.
3. Get your flu shot before you travel.
4. Always wear a mask in public settings, when using public transportation, and when around people who you don’t live with.
5. Stay at least 6 feet apart from anyone who does not live with you.
6. Wash your hands often or use hand sanitizer.
7. Avoid touching your mask, eyes, nose, and mouth.
8. Bring extra supplies, such as masks and hand sanitizer.
9. Know when to delay your travel.

How To Tell Your Family You are not coming home for Thanksgiving

If you decide that the best course of action will be to stay home, your loved ones might understand and welcome your decision.  However, they might be disappointed or even angry that you have decided not to see them.  If this happens, taking the following steps might ease their pain:

1. Accept Responsibility.  Let your loved ones know that you are sorry that you cannot make it but you just do not anyone in the family to get sick and you are willing to take responsibility for that.
2. Acknowledge your loved one’s feelings.    Let them know you understand how they feel and if that you would feel the same way if you were in their shoes.  
3. Explain the facts.  Use the facts regarding the number of Covid-19 cases and deaths as the reason why you chose not to travel.  Reiterate to your loved ones that you do not anyone in your family to be part of these painful statics.
4. Provide Alternatives to traditional Thanksgiving Dinner.  Offer to do a virtual gathering with your loved ones where you cook and / or eat your Thanksgving dinner together via Zoom or Facetime.   You can also offer to see your loved ones as soon as it is reasonably safe to do so.

This Thanksgiving will be one of the most difficult holidays in my recent memory not only because there will be no large family Thanksgiving gathering this year but because of the immense pain and suffering that Covid-19 has caused for the United States and the world (not to mention the atrociously inadequate national strategy which has made the pandemic even worse  - but that topic is for another blog post).  To be safe, my family has decided to have a small gathering instead.  While this year is unlike any other, my family still has plenty to be thankful for.  I hope yours does as well.

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This content is developed from sources believed to be providing accurate information, and provided by Attune Financial Planning. The opinions expressed and material provided are for general information only.

In response to the current pandemic, recent legislation including the Families First Coronavirus Response Act, the CARES Act and the Paycheck Protection Program and Health Care Enhancement Act have detailed a number of unemployment benefits, loans and relief for small business owners as well as the self-employed. 

If you’re a small business owner in America who has felt the financial devastation of this ongoing pandemic, there are options out there designed to offer relief and help keep your business afloat. 

Option #1: Access Loans and Immediate Emergency Funds

During this unprecedented time, small business owners and self-employed individuals are eligible to receive relief through the Paycheck Protection Program (PPP) as well as Economic Injury Disaster Loans (EIDL). SBA-approved lenders began offering these loans on April 3. Funding, however, ran dry on April 15 for the first round of the $349 billion program. To replenish the available funds, an additional $310 billion was approved and allocated to the PPP through the Paycheck Protection Program and Health Care Enhancement Act signed into law on April 24.¹ 

Paycheck Protection Program loans are meant to be used for payroll and compensation costs, healthcare benefits, mortgage interest, rent, utilities and interest incurred on other existing debts.¹ They have been offered at an interest rate of one percent and with these loans, you’ll be given six months to one year before you are required to begin making payments.¹ Typical fees, personal guarantees and/or collateral are not required to receive a PPP loan. 

Alternatively, Economic Injury Disaster Loans are offered directly from the SBA. Grants up to $10,000 are available as an advance within days of applying, in order to provide relief as quickly as possible.² 

Option #2: Operational and Payroll Debt Forgiveness

By taking out a loan under the Paycheck Protection Program, a portion will be forgivable as you will not be required to pay back the funds used for payroll, mortgage interest payments, rent and utilities in the eight weeks following its origination date.³ 

One of the primary goals of this is to help companies stay in business and keep workers paid. The forgivable amount may be reduced if you have to limit either the number of employees you have or the compensation they receive, and those changes aren’t undone by June 30, 2020.³  

Option #3: Employer Tax Credits

You may be eligible for an employee retention credit if your business closed to comply with government regulations or suffers a decrease in gross receipts of 50 percent or more, compared to the same period of time last year. This would amount to 50 percent payroll tax credit on wages up to $10,000 per employee and is not available if you’re utilizing a PPP loan.⁴ 

The Families First Coronavirus Response Act has some requirements in the interest of public and economic well-being, but the tax credits offset these costs. Employer requirements include: 

• Two weeks of paid leave to quarantined employees or those with coronavirus symptoms awaiting diagnosis. This amount is confined to 100 percent of their regular wages or minimum wage (whichever is higher) up to $511 per day, or $5,110 over two weeks. 
• Two weeks of paid leave to those who are unable to work because they are caring for a quarantined loved one, limited to two-thirds of the employee’s regular wages or two-thirds minimum wage (whichever is higher) up to $200 per day or $2,000 over two weeks. 
• Up to 12 weeks of paid leave for employees who must care for their children whose school or childcare is closed due to COVID-19. These payments are restricted to two-thirds of the employee’s regular pay or two-third minimum wage (whichever is higher) up to $200 per day or $12,000 over the 12-week period. When it comes to leave related to childcare and school closures, small businesses may be eligible for an exemption, provided that paid leave would put the business in jeopardy.⁵ 

Employers and self-employed individuals are eligible for reimbursement of these payments and the costs to maintain employee health insurance coverage considering the expense of the associated requirements. In the form of tax credits, reimbursement is available for payments that take place between April 1, 2020 and December 31, 2020.⁵ 

Option #4: Deferring Existing SBA Loans

You may have existing business loans guaranteed by the SBA, in which case they will be deferred for a six-month period.⁶ This means that payments will not be required, but the SBA will pay your lender beginning with the next due payment. If you have a current loan that is already being deferred, it will begin the six-month grace period after your current deferment has ended. 

Option #5: Delayed Tax Payments

Lastly, as a small business owner, you may delay payroll tax payments that would otherwise be due between now and January 1, 2021. Instead, half of the delayed taxes will be due on December 31, 2021 and the remaining amount will be due by December 31, 2022.⁷ 

While staying in business is undoubtedly difficult during this time, federal and state aid is available. With a number of accessible grants and loan options, understanding the relief programs out there can help your small business get back on its feet in the long run.

Tip #1: Set Up a Workspace

Try to create a designated “office” - a place where you can work with minimal distraction. This could be a spare bedroom, dining room, etc. If it’s not possible to separate yourself from others during the workday, make sure your roommates or family members respect your work area, wherever it may be a table, couch, etc. Remind others in your household of your designated working hours to maximize your time with as few distractions as possible. 

Tip #2: Pay Attention to Your Time

It can be easy to work late into the night, especially since there isn’t a physical office building to leave. Unless you have a tight deadline or urgent task at hand, try to work the same hours that you would normally if you were at the office. Practice making an intentional effort to end the workday at a reasonable time. Turn off your computer, leave the room you were working in and do whatever you need to in order to physically and mentally separate yourself from work.

Make time for scheduled breaks throughout the workday where you can get up and stretch or walk around. This will help you feel better both physically and mentally throughout the day. 

Tip #3: Communicate With Your Team

When you work in an office, you can just walk into someone’s office or pop over to ask a quick question. When working from home, that isn’t the case. Make sure you’re being responsive to emails and messages in a timely and efficient manner. If your company didn’t already have an instant messaging system in place, now is the time to suggest implementing one. Some common workplace instant message software includes:

• Slack
• Google Hangouts
• Troop Messenger
• Spark

Don’t forget you always have the option to resolve issues quickly with a phone call as well. If you manage a team of your own, make your communication expectations clear to employees.

Tip #4: Dress “Professionally”

While you don’t need to put on a suit or slacks like you would wear at the office, it’s still important to get dressed in some fashion every day. Make sure your clothes are presentable since you will likely be on calls and video chats with coworkers or clients. While it’s tempting, try not to simply roll out of bed and start working. And when possible, do not work from your bed. It’s important to separate where you sleep from where you work. 

Tip #5: Create a System to Share Documents

You may already have a way to quickly share and access files at your company, but if you don’t, now is the time to set something up. It’s important to consolidate and organize your files, not just have them scattered throughout inboxes or instant messages.

Some file-sharing platforms to consider using include:

• Dropbox
• Box
• Google Docs

Tip #6: Take Time for One-On-One Check-Ins

Even if it’s only for five minutes, it’s still important to have a quick check-in with your coworkers, employees or managers. It helps everyone feel as though they’re on the same page and still connected with one another. 

Tip #7: Ask for Feedback

It’s important to ensure that everyone, yourself included, is adapting well to working remotely. If you’re a manager or boss, check in with your employees and ask what you can do to make their lives easier. If you’re an employee, ask your manager if you’re meeting their expectations in regards to communication and productivity.

It can be hard to work remotely at first, especially if it is something that you are not used to. Let these tips be a guide for creating a successful work environment for you and your coworkers. 

 Below are six things you should know about California Real ID:

1.  What Does the New California Real ID Card look like?

The California Real ID Card looks just like a regular drivers license but it has a picture of a golden bear with a star on it.  

2.  Do You need to Get a California Real ID?

You are not required to obtain a Real ID by October 1, 2020.  Your existing drivers license will still be legal.  However, it will no longer be considered valid identification to board a domestic airline flight or enter secure federal facilities (courthouses, military base, or other govt. building where an ID is required) . Unless you have a Real ID, you will need to have a valid Passport as identification.  So, if you don’t have a U.S. Passport or don’t wish to carry your passport with you when you travel, then you should obtain a California Real ID.  (Note:  For international flights, you will still need to show a valid passport as identification)

3.  Do Minors need to get a California Real ID?

The TSA does not require anyone under the age of 18 to provide identification when traveling with a companion within the United States. However, the companion will need acceptable identification, such as a REAL ID, U.S. Passport, U.S. Passport Card, DHS Trusted Traveler Card, etc.

 4.  What happens if you do not want a Real ID Card?

When you renew your drivers license you will get a new one that read “Federal Limits Apply”.  This means you will not be able to use it to board flights within the U.S. or visit secure federal facilities such as military bases, federal courthouses, or other federal buildings beginning October 1, 2020.  A valid U.S. Passport will be required.

 5.  You Want a Real ID Card – when should you obtain it?

If you have a valid drivers license but you do not own a U.S. Passport, the Department of  Motor Vehicles (DMV) recommends that you apply for a Real ID as soon as possible.  You can apply now and you don't have to wait until your current drivers license expires to apply.

If you have a valid driver license and a U.S. Passport, the DMV recommends that you hold off applying for your Real ID until your drivers license is up for renewal.  The DMV does not recommend that you get your Real ID earlier than your renewal cycle as they anticipate a high demand for Real ID between now and October 1^st.  This will mean the inconvenience of having to carry your passport with you when you travel by air domestically until you receive your Real ID.

6.  What documents do you need to apply for a Real ID Card?

When you go into the DMV you will need to bring the following:

One document that shows your date of birth and true full name such as your passport, certified copy of your birth certificate, permanent resident card, etc.  

One document that shows your name, and full social security number like your social security card, W-2, paystub with full social security number.

Two different documents proving California residency that include the first and last name and mailing address such as mortgage bill, home utility bill, cell phone bill, vehicle registration card, that will be shown on your Real ID drivers license or identification card. (Now would be a good time to check your mortgage statement, utility bills and phone bills to make sure that at least two of these documents have the names of both spouses on them)

Since you have to bring these documents into the DMV in person, your initial Real ID cannot be obtained by simply renewing your drivers license on-line.  In subsequent years, you will be able to renew your Real ID on-line.

So for a majority of us, a Real ID will be necessary.  Be prepared to stand in line at the DMV!  To minimize your time at the DMV, it will be best to make an appointment.  You can just show up but be prepared to wait.

For more information on the Real ID go to https://realid.dmv.ca.gov/

_______________________________________________

This content is developed from sources believed to be providing accurate information, and provided by Attune Financial Planning.  Please consult your financial, legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information only.

As a parent, it's important to consider instructing your kids at an early age about how to manage their personal finances. Parents can also offer their kids opportunities to learn how to handle money and save for their future on their own.

1. Give Your Teen Money of Their Own

The first step may be to give them money to manage. Let them take on a job after school when they are old enough, and maybe cut back on the extracurricular activities to make room for it. If that isn’t a good arrangement, give them an allowance, but resist the urge to bail them out when they’ve spent it all for the week. 

Another option is to open a separate bank account for your teen. This way as a joint account holder you will be able to provide guidance and oversight to your teen in how to manage money. Many banking institutions now offer teen checking accounts with no fees and free debit cards. 

2. Budgeting for Beginners

Once kids have their money, there will be more ways to spend than you may realize.  For example, they can get coffee on the way to and home from school.  Secondly, the games they play on-line often encourage micro transactions, where kids spend a few bucks at a time to advance faster in the game. These small purchases can add up quickly if the kids aren’t paying attention. It’s a great opportunity to teach them about budgeting.

Kids can keep an old-fashioned manual accounting ledger, an Excel spreadsheet, Quicken, or sleek apps for mobile computing. They may learn more about budgeting from having to manually enter debts and expenditures; however, the apps will automatically track some spending depending on the method of payment.

3. Make them Pay for the Good Stuff

The costs of raising a child grows each year, up to $14,000 per year according to the Department of Agriculture.² While this covers some basics – room and board – that figure also includes transportation expenses, childcare and health care. Does it also include video game systems, cell phones and a first car?

Perhaps teens should pay for, or help pay for, big-ticket luxury items like an expensive cellphone or gaming laptop. Doing this will help your teen learn how to set a financial goal. Learning to save now for something they want will help them learn to set aside money for retirement or college for their own children when they are on their own. They can use their newfound skill in budgeting and tracking spending to see how they’re doing.

4. Investing at an Early Age

Learning how to save can lead to kids learning about investments. Kids should learn about safer investments like bank savings accounts or Roth IRAs or playing the market. You never know, your kid may be a financial wiz who discovers the future version of Amazon or Apple, invests the fortune he or she earned from the local fast food joint and becomes a millionaire.

If you do decide to involve your teen in the more complicated and volatile investment methods, it’s a good idea to get advice from a financial advisor. They can even give your child a beginner’s lesson in sound financial strategies that could end up saving money for your entire family.

^{1 2018 Survey of the States; Council for Economic Education https://www.councilforeconed.org/wp-content/uploads/2018/02/2018-SOS-Layout-18.pdf}

^{2 Department of Agriculture Expenditures on Children by Families Annual Report https://www.cnpp.usda.gov/expenditures-children-families-annual-report}

_{This content is developed from sources believed to be providing accurate information.   The opinions expressed and material provided are for general information only.}

What Is Financial Life Planning?

Financial life planning can be well described as a holistic financial planning process that puts the interests of a client first when drawing up a plan to help them manage their finances. Financial life planning focuses on increasing your well-being and ability to reach your personal goals, instead of just focusing on the numbers. From the beginning, this approach helps you identify your current circumstances, priorities, aspirations and dreams; enabling me, your financial planner to create a holistic financial plan that allows you to live your definition of a meaningful and fun life.

How Is Financial Life Planning Different From Traditional Financial Planning?

Financial life planning focuses on bringing together quantitative data and qualitative information during the financial planning process. The quantitative side is the numbers side, while the qualitative side is the side that seeks to have a deeper understanding of your values, money mindset, aspirations, money fears and money habits among more. Financial life planning seeks to help you strike a balance between the two sides and hence enable you to live life to your full potential.

Traditional financial planning focuses solely on the quantitative side-that is budgeting, estate planning, insurance coverage, retirement savings, taxes, and so on. While this is not bad at all, just focusing on this alone and ignoring the qualitative aspects of your life can reduce your life to numbers on a page-and no one really wants such a life.

Why Work With a Financial Life Planner?

Life is highly unpredictable and so are financial markets and investments. To create a solid financial plan that allows you to achieve your financial and life goals simultaneously, it is important to work with a financial life planner. It is also imperative that you hire a financial planner who will take their time to learn about you and comprehend your financial concerns and desires fully.

Through my training with Money Quotient, a leading thinker in the field of Financial Life Planning, I have joined the ranks of an increasingly growing number of financial professionals that understand the importance of integrating life planning into financial planning. 

However, one great misconception about financial life planning is that it involves therapy. Part of the process may center on finding out why you currently manage your money the way you do (most probably if it’s not the best way). It’s all about uncovering your money history and prospects, and hence helping me, your financial planner  to understand you wholly. The effects of the process may be therapeutic but it is not psychotherapy.

The process will also entail some elements of life coaching as I help you examine your life and understand the most important goals to you. The life planning process is designed to help you pinpoint challenges, life transitions, and other money-related aspects of your life that you probably never considered important. From there, we develop a financial plan that best aligns your life goals to your current financial situation, as well as your expected financial situation in the future.

All in all, financial life planning is about some integral questions; what do you think will bring meaning and purpose to your financial life? What would you like to accomplish or experience so that in the end you will feel you have lived your life fully? What would you do if you had more time and money?

^{This content is developed from sources believed to be providing accurate information.  Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information only.}

Clear Yourself of Debt

Depending on the size of your inheritance, there may be no excuse for continuing to carry large amounts of consumer debt that charge high interest rates. If you have such debt, you may want to start by looking at how best to approach paying it down. You can pay off credit card balances, car notes, and student loans with your newfound wealth. A good idea regardless is to go through your options with a financial planner and discuss how best to handle using your inheritance to pay off your debt.

Take Care of Family

Your immediate family may not have needs right away. However, you should start to think about the future, especially if you have children. Factor an inheritance for your loved ones into your regular savings goals.    If you have children, placing some of your inheritance in a 529 Plan for you kids may be on your list of savings priority. 

Invest

You are likely (hopefully!) already thinking of savings, Roth IRAs and other investment strategies upon receiving an inheritance. You can also invest in other ways, like purchasing a new home or rental property. Of course, you'll want to balance any investments with debt reduction as well. 

Boost a Worthy Charity 

If you are knowledgeable about finances, you know of the tax benefits of charitable donations. Giving to a charity may help reduce some taxes owed thanks to your new capital gains. You will also be contributing to your community or an organization in ways you could not before. You may establish a trust that will help fund a charitable organization for years to come. As a nice touch, you could establish the trust in the name of the family member that passed on.

You don’t have to limit the gift-giving to a charity. You can spread the wealth among family and friends. Gifts have tax implications like charitable donations, so it’s something you will want to talk about with a financial planner.

Take Great Care

Many people joke about spending their paychecks before they receive them. That may be the case for you and your inheritance, especially if it is something you have been anticipating. Resist the urge to splurge or spend your new found gain too rashly. You may have relatives, friends, or even strangers approaching you with business opportunities that can’t miss, or asking for your help financially. Think hard and do your homework before rushing into anything.

Talk Things Over

You shouldn’t make these big decisions alone if you hope to pay forward the legacy you received. Of course, you can talk things over with family members, though finances can be a difficult topic. You can speak with the executor of the will or  trustee of the trust if that’s how you received the inheritance.  You can address these issues with an attorney  who is well versed in finances, taxes and investments.

It may be a good time to establish a relationship with a financial planner if you don’t already have one. It may not have made sense to have a financial planner previously, but now that you have a new source of funds, talking to an experienced professional will be a good idea and save you from potential heart ache down the road.

 _{The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information only.}

In nine short years, he has grown from a little boy barely out of diapers into a bright teenager who is ready to grow into adulthood. As I was growing up, I took for granted how much I learned during these years.

But seeing my son’s growth through the eyes of a parent, I now truly appreciate and marvel at a child’s ability to learn. As a father, I strive to be an example and role model to my son. Looking back on it though, I realize that there are so many things I learned from him. I have seen through Ryan how attitude and outlook can have a significant impact on our ability to succeed and be happy. I’d like to share with you four of these “childlike” traits that we all still possess inside of us but may have forgotten about as we got older. 

Enthusiasm

As a young boy, Ryan would do anything we asked him to do without complaint. Whether it was reading a new book, playing the piano, learning how to play various sports, or excelling in school, Ryan took on whatever was in front of him enthusiastically. Everything was just fun. There was a sense of joy in all he did and he lived in the moment. As we get older, things tend to get less fun and we forget how to be present and just enjoy what we are doing right now. So, let’s be enthusiastic and try to find joy in all that we do. Enthusiasm leads to optimism which in turn leads to happiness. 

Curiosity

Ryan has a sense of wonder about the world and wants to learn all he can about it. This is probably because a lot of what he saw and experienced was literally for the first time. Why” and “How” are words we heard so much in our house as Ryan was growing up. He was always questioning things and wondering about how this or that worked. He would ask about things we take for granted as adults. His curiosity led to his love of reading which he did constantly. As we get older and busier, we become less curious and more accepting of the world around us. So, let’s take a moment each day and question one thing and search Google until we are satisfied with the answer. If we learn one new thing each day, imagine how much smarter and wiser we will be in just one year. 

Fearlessness

Like most children, Ryan was never afraid to learn something new because fear of failure or embarrassment of not doing something “right” never crossed his mind. Whether it was learning how to play baseball, swim, ride a bike, or ski, Ryan was never afraid to try. Part of the reason for not being afraid was due to his enthusiasm and natural curiosity to experience new things. This fearlessness also meant he did not have any inhibition. He was not afraid about looking or acting silly. He took great joy in just “being a kid”. As we get older, we lose this fearlessness and become more conscious of others and are concerned about the consequences of our actions. So, let’s try not to let our fears and insecurities prevent us from doing things we really want to do. Who knows where it may lead. 

Dedication

If there is one trait that Ryan has that we are proud of it is his dedication. Once he puts his mind into doing something he won’t quit. He loved solving puzzles and worked seemingly day and night playing with his Legos, transformers, and later learned to solve the Rubik’s cube (!). He has taken this same dedication to his love of music, sports, and school. With so many things going on in our lives, there is more of a tendency to lose our focus, stamina and patience that we are unable to fully dedicate ourselves to learning new endeavors. So, let’s try to be more patient, not give up, and stay dedicated to our passion and goals.

Ryan will be headed to high school in the Fall. In the next four years, he will grow from a teenager into an adult. I hope that he will hold on to his childlike qualities and continue to be enthusiastic, curious, fearless, and dedicated in all that he does. If we can do the same in our lives, there is no telling how many more goals we can accomplish for ourselves. If nothing else, life will be more fun.

In light of the tragic events that Europe has experienced this year, the U.S. State Department has issued a travel alert to U.S. citizens traveling to Europe from May 1st to Sept. 1st, 2017. Their website provides the following suggestions if you are planning to travel to Europe: 

If you are traveling between countries in Europe, please check the website of the U.S. embassy or consulate in your destination city for any recent security messages. Review security information from local officials, who are responsible for the safety and security of all visitors to their host country. U.S. citizens should also:

• Follow the instructions of local authorities. Monitor media and local information sources and factor updated information into personal travel plans and activities.
• Be prepared for additional security screening and unexpected disruptions.
• Stay in touch with your family members and ensure they know how to reach you in the event of an emergency.
• Have an emergency plan of action ready. 
  • Here is an example of a Personal Emergency Action Plan template developed by StudentsAbroad.com which you can use to develop your own Emergency Plan.  http://www.studentsabroad.com/handbook/personal-emergency-action-plan.php?country=General
• Register in our Smart Traveler Enrollment Program (STEP). https://step.state.gov/step/
  • By enrolling in this program, you will receive security messages and will make it easier for the U.S. State Dept. to locate you in the event of an emergency.

1. It is Significant.
   
   To be significant means to give us meaning and purpose in life. Sebastian is a jazz pianist who wants to own his own Night Club because he is passionate about keeping jazz music alive. In his heart, the only way he could accomplish this is by playing music his way. Mia is an aspiring actress who has dreamt of being a Hollywood star ever since she was a little girl. Acting is in her blood and is what makes her feel truly alive. We should feel the same way about the big goals in our life. How significant are your goals? Unless we feel passionate about the goals we are pursuing, it will become a chore instead of a dream.
   
   
2. It is Meaningful.
   
   Our goals should be based on our personal set of values, beliefs, and priorities. When we choose goals in order to please others (parents, partners, employers, society, etc.), it tends to lose meaning for us over time; especially when difficulties and challenges arise. To Sebastian owning a Jazz Club resonated with his core belief that Jazz music must be kept alive.
   
   However, in the middle of the movie, he changed his goal from owning his jazz club to playing in a mainstream jazz band because it provided the steady and stable income that he thought Mia wanted. How meaningful are your goals? As we saw in the movie, goals that are not meaningful often lead to conflict, negativity and tension. Unless our goals resonate with us and are based on our own unique belief system, there is a strong chanced we will not be truly satisfied with the pursuit or the outcome. Either we will abandon the goal or if we achieve it, may end up feeling less than satisfied.
   
   
3. It is Attracting.
   
   When our goals are both significant and meaningful to us, they provide us with a clear and positive vision of what that goal looks like. It naturally pulls us towards what we want to achieve. Reaching that goal may be difficult, but having a positive vision will sustain us even in the face of difficulties.
   
   When Sebastian was barely making it as a lounge pianist or playing in weekend bands, he never lost sight of his vision of owning his own Jazz Club. Mia was willing to go through one failed audition after another because she had a clear vision that she could one day become a Hollywood Actress. How attracting is your goal? The stronger and clearer it is, the more it will pull you towards what you want to achieve.
   
   
4. It is Rewarding.
   
   The easier the goals we set for ourselves, the less meaning it has for us in the long run. Goals that are truly rewarding does not come without challenges. When things get tough, it is natural to have doubts about our ability to be successful. As the movie shows, our lives are constantly evolving. These ever-changing events causes us to continually re-evaluate our choices. This in turn, sometimes causes us to lose sight of, or change our original vision. Forming a relationship with Mia caused Sebastian to re-evaluate his dreams of owning a Night Club.
   
   A major setback with her one-person show caused Mia to re-evaluate her odds of becoming an actress. As Sebastian and Mia discovered, if we honestly assess conflicts inherent in the pursuit of meaningful goals, and we find ways to overcome them, we will discover that the journey is just as rewarding as the achievement. How rewarding are your goals? Do you feel a sense of accomplishment along the way? The more challenging the goal, the more hurdles we have to overcome. It is the overcoming of those hurdles that bring joy to the journey.
   
   
5. It is Timely.
   
   Some goals, like saving for a new car can be accomplished in a few months or years. Larger goals like becoming an accomplished musician, actor, or dancer are life time pursuits where there is no specific time-frame for completion. Regardless of the goal, we must be willing to commit the necessary time required to pursue that goal. Otherwise, the odds of accomplishing that goal is small. We also must consider the timing of when to pursue a particular goal.
   
   Sebastian and Mia are willing to put in whatever time is necessary to accomplish their dreams. They are young so this is a great time to pursue their dreams. How timely are your goals? Is the timing right and can we commit the time necessary to complete the goal? Some goals will have finite time-frames while loftier goals may not. The bigger the goal, the longer it may take to achieve that goal. It can be easy to become discouraged and not pursue it because we think it will take too long to accomplish. We should be careful about being too restrictive about deadlines as they can cause us to limit the goals we wish to pursue.
   
   For example, while we may dream of playing the piano or becoming an actor, we might decide not to pursue these endeavors because we are too old or can’t be “experts” in a specific amount of time. Setting hard deadlines can limit our creativity, growth, and our ability to dream big. A better method would be to break up the big goal into a series of smaller goals so that we can feel a sense of reward along the way. In addition, this method will allow us the flexibility to modify our goals as our life situation changes.

La La Land was a great character study of what happens when two people are SMART about their goals in life. Applying these rules, we too can be smart about choosing goals that are satisfying and fulfilling as well.

1. Understand What’s involved
   
   Lucy and Ethel had no idea what they were in for when they decided to take on the job of candy wrappers. So they were not prepared to handle the volume of chocolate coming at them.The same is true in whatever endeavor you wish to undertake.
   
   Whether it is taking on a new job, remodeling a bathroom, or volunteering in your community make sure you know what it will take to be successful. Once you know this, ask yourselves if you can commit to it personally, emotionally, and financially. For example, starting a bathroom remodel project is exciting but expensive.In addition, can you live with one less bathroom for 3 months?
   
   
2. Communicate with each other
   
   When they first started the task, it seemed easy and Lucy and Ethel were talking a bit and smiling. But soon enough as the chocolates came at them faster and faster, they stopped talking as panic set in. When things are going well, communication is easier because conflict is minimal.
   
   However, when the situation becomes more stressful, it can become more difficult to talk about areas of disagreement. When we are stressed beyond our ability to handle it effectively, we tend to move into fight or flight mode. Either we argue or avoid confrontation.
   
   Neither of which is very constructive. It is important to communicate with each other early and often. Discuss your issues and make sure that you address any concerns openly and respectfully. Make sure you are both in agreement on that bathroom remodel both in style and cost before you even start the project.
   
   It is also important to check in with each other regularly to make sure you are both on the same page. I find that the best time to have these check-in’s is when you are doing a neutral and mutually enjoyable activity like going for a walk together. Walking is not only healthy for you, it is a great stress reliever.
   
   
3. Know when you need help – ask for help – and be a team.
   
   When things started going crazy Lucy and Ethel did not ask for help. Why? Because they thought they were going to get fired. When things do not go as planned or when you realize that you are unable to do things on your own, it is okay to ask for help.
   
   Often times we do not ask for help because we are unsure of what the other person might think, say or do.If you are beginning to feel overwhelmed, the first place you should look for help is from each other. Go back to steps 1 and 2. Has the situation changed? Talk about what the current situation and find out if there is a problem. Is this something you can resolve together or do you need outside help.
   
   
4. Know when to press the emergency stop button.