Ask questions, such as, “Am I on track to meet my goals?” “Has anything changed to alter the course?” Consider beginning on a long journey towards a particular destination. Just as personal growth and improvement requires continuous attention, you should review your financial plan at least annually and make adjustments as needed. Planning for your financial success is not a one-time event. Covey says, “The whole is greater than the sum of its parts.” 7. Each has unique strengths, and together, as Dr. The advantages of your financial advisor, accountant, attorney, and others all working together for your benefit cannot be overlooked. The 6 th habit of Covey’s book emphasizes synergy, or “to value differences – to respect them, to build on strengths, to compensate for weaknesses.” Financial success requires strong collaboration, a team approach. Whether it is your investment portfolio, insurance policies, or estate planning documents, all should be implemented and executed with your specific needs, goals, and challenges in mind. When I go to my doctor and tell him or her that I am sick, he or she will start asking questions and running tests to understand what my needs are prior to recommending a treatment. Similar to Habit #2, it is important to understand the problem before implementing a solution. ![]() Seek First to Understand, Then Be Understood = Diagnose, then PrescribeĪs you work with others towards achieving your financial goals, ensure you have the right diagnosis before you fill the prescription. Character is at the heart of Covey’s fourth habit, a trait fully embraced by CFP® practitioners. A CFP ® professional is required to act in your best interest at all times, displaying integrity, competence, and diligence, among other qualities. Think Win / Win = Look for the CFP® Certification MarkĬovey’s fourth habit begins to enter the realm of relationships with others and “seeks mutual benefit in all human interactions.” When seeking an advisor, look for someone with the CERTIFIED FINANCIAL PLANNER™ certification. ![]() A financial plan is worth nothing if you do not take the recommended steps to achieve your objectives. This includes setting priorities among your financial goals, when needed. While the 2 nd habit is about leadership, Covey states the 3 rd habit is about management – “How can I best accomplish certain things?” Recognizing the need to act, and having a vision of financial success, you must now work towards achieving those goals. Lewis Carroll once said, “If you don’t know where you are going, any road will get you there.” Once you know your destination, then you can work to apply Habit #3. What would you like to have happen if you died prematurely? Would you like to assist with education expenses for your children, or grandchildren? What are you doing? Where are you going? How are you spending your time? Think about other scenarios. Begin with the End in Mind = Set Your GoalsĬovey notes the second habit deals with leadership – “What are the things I want to accomplish?” It is important for you to define what financial success looks like to YOU. Are you taking the steps to work towards those goals and dreams? Have you thought about it? Consider the 2 nd Habit. Life is also full of goals and dreams – travel, funding college for your children, and more. You can act to manage the risk associated with a premature death or disability event. You can be proactive and set aside an emergency fund. Life is full of unexpected events – job loss, health issues, etc. Again, Covey notes “that there are some things over which we have no real control and others that we can do something about.” It is up to each individual to act on the things over which they have control. He states it another way saying, “Act, or be acted upon.” Simply put, to be financially successful, your very first step must be to PLAN. In other words, you are in charge of yourself. In the very first habit, Covey concludes that “we are responsible for our own lives”. ![]() Just as Covey proposed that successful individuals apply each Habit, I would add that financial success also includes the same habits. Covey explores the effects of a principle-centered paradigm, changing ourselves from within first, and then the impact on our relationships with others.Īs I finished the book, I started thinking about how applicable each Habit is to our financial planning profession. If you have never read it, I strongly recommend it. Stephen Covey’s classic, “ The 7 Habits of Highly Effective People”. ![]() A group of us in the office recently read (or re-read) Dr.
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