June 30, 2012

HOW TO REPAY A NONFINANCIAL DEBT

debt?You can repay a financial debt with money. What about nonfinancial debts?

When someone helps you in a powerful way, a debt of sorts has been created. That doesn't mean you can or must repay it.

Suppose you got an idea or an a-ha moment that changes your life. There's no possible way to repay the giver, even if they're “doing their job”  (e.g., your grade two teacher).

Maybe you got free publicity or an award nomination. An attempt to repay whoever referred or nominated you may look like a bribe and cheapen the gift.

You might never have met the source of the inspiration, which might be:
  • a song ("Did you exchange a walk on part in the war for a lead role in a cage?" --- Wish You Were Here, Pink Floyd)
  • a quote (e.g., "I am not bound to succeed but I am bound to live up to the light I have" --- Abraham Lincoln)
  • a movie scene (e.g., this time lapse at the end of Gangs Of New York, which is even more poignant with the loss of the twin towers)


Was the goal of your benefactor to create a debt you're meant to repay or were you given a no-strings-attached gift?

Here are two ways to (try to) repay
  1. Help others
  2. Shine your spotlight

Help Others

This is perhaps the best way. Do unto others. Pay it forward.

We know how other people can fix up their live ... but don't tell them how. How selfish of us. How unfortunate for them.

Are we afraid to give our opinions?

I have a habit of giving unsolicited feedback (blog post). This polarizes the recipients. In most cases they are appreciative. In rare cases, they are not interested in feedback. Either way, you get a better understanding of how that person is. To quote someone anonymous, a closed mind, like a closed room gathers only dust.

If they agree with your suggestions, do they actually change? If not, maybe they don't care enough to improve. At least you offered help.
Tact
Please don't say the first thing that comes to your lips or mind. Think. If you don't know how to give feedback, visit Toastmaster clubs. You can go for free with no obligation to join. You'll see how feedback is given to speakers and members with major roles. If you  join, you'll get to practice giving feedback in a safe environment.

Your feedback is simply your opinion. It's neither right nor wrong. The recipient needn't act upon it. You still benefit by having the courage to give it.

Shine The Spotlight

You can pay your benefactors with more attention. You become part of their tribe or group. You look out for them. Maybe you find opportunities for them. Perhaps you support their causes.

You can thank in public. In this way, you go on the record with your views. If they're on LinkedIn, write testimonials. I often occasionally get thanks, usually in person. That’s nice but of limited value since no one else knows. If you repeat the nice things said about you, you risk looking like you’re you’re praising yourself (and perhaps exaggerating).

Maybe you thank someone who goes bad later. That doesn't take away from the help they’ve given you. That does not mean that thanking them was a mistake.

Example

In my case, Seth Godin has been especially influential. If he sent me a bill, I'd have trouble paying it. Instead, I read his blog, buy his books, support his initiatives (e.g. Triiibes.com), attend his events (e.g., The Linchpin Session) and share his ideas. Most recently, I helped fund the Kickstarter campaign for his next book, The Icarus Deception. Nothing I've done is major but it's sincere. It's better than silence.

How do you thank when you can't repay?

Links

Podcast 175


direct download | Internet Archive page | iTunes
PS The summer holidays are now underway. Be mindful of the most dangerous part of driving.

June 23, 2012

ELLEN ROSEMAN MAKES FINANCIAL BASICS LIVELY

1+1=?
Understanding the financial basics is important but boring. There’s also the risk of getting biased advice.

As a result, we may not know our 1-2-3s as well as our A-B-Cs (see the key to numeracy). Even if you think you do, a refresher can't hurt.

Where can we go for information we can trust? Bloggers and journalists are excellent sources. Reading isn’t always enough. There’s room for live events too.

Have you heard of the Financial Consumer Agency of Canada (FCAC)? This independent agency of the federal government was established in 2001 to educate and protect us. The FCAC developed the Financial Basics Workshop with the nonprofit Investor Education  Fund. Ryerson University hosted a session this week. We got refreshments and a helpful 50-page workbook with the unfriendly title "Participants' Handbook" (online version).

A boring topic requires an excellent speaker. We were lucky. We got Ellen Roseman.

Ellen Roseman

Ellen is an ideal choice. She's a consumer advocate backed by the clout of  The Toronto Star. I've read her articles and blog posts for years. This was the first time we met in person.

I was surprised that Ellen had so much energy. We needed that. The four hour seminar started at 5:30 PM --- my fourth and final event of a long day. Ellen had plenty of real world examples to supplement the workbook. She also encouraged and got lots of audience participation. We needed that too.

Highlights

Lots of content got covered. Here are three highlights.
Barriers To Financial Goals
Longevity is an easy-to-overlook hurdle on the path to our financial goals: There are challenges with
We can't count on stable, secure, well-paying jobs with generous defined benefit plans for our retirement income. We're not helpless but do face big challenges.
Be Proactive
Companies make mistakes but the onus is on us to get corrections made. For example, you might get billed for an extra service you didn't want or thought you'd cancelled. If months or years pass, the vendor is less likely to correct their mistake.
Companies may introduce better deals but don’t wait for them to tell you how to save. The onus is on us to ask.
Loyalty/Retention Incentives
You may have supported some brands for years. You're making them profitable and they want to keep you. Yet special offers tend to target new customers. How do you monetize your loyalty? By negotiating a better deal. When calling, be firm, be polite and have copies of competitors’ offers. Ask for compensation for your time on hold (e.g., for the horror of Rogers “Ultimate” Internet).

Ellen noted that bankers are now like used car dealers: willing to negotiate.

Who Attended?

The room was full. There seemed to be 100-150 attendees. That's excellent, especially on a hot, humid evening. Hooray for air conditioning.

The audience was diverse, ranging from university students and older. Knowledge levels would have varied. They seemed to know of Ellen primarily from her Toronto Star column.

Measures Of Success

Does the workshop make a difference in the lives of attendees? I asked an FCAC representative. There isn't a good way of telling. There's a plan to ask attendees in the future.

Good intentions are easy to forget. Ongoing motivation takes effort. Perhaps attendees can get a newsletter with ongoing tips and reminders. There may be apps that help too. Peer support is probably the best. A 12-week program like Pick Four may be ideal if you have weekly check-ins.

Ultimately, what you get depends on your commitment and discipline.

SUMMER SCHOOL

The summer is a great time to build good habits. You can save money and improve your life by
  • walking or biking more
  • eating healthy, locally-grown fresh food (perhaps from your own garden)
  • finding ways to reduce or larger expenditures
You might want to attend a financial basics workshop the next time one’s offered near you.

Links

Podcast 174


direct download | Internet Archive page | iTunes

PS Here’s a surprise: the FCAC YouTube channel has 3,116 views while mine has 3,790 views.