From Financial Integrity
What's New
Member Profile: Dimitri Uralov
Originally from Moscow, Russia, and now living in Barcelona, Spain, Dimitri Uralov is an extraordinary young man who has lived his entire adult life working to learn, rather than to earn. Starting at age 18 with his introduction to the work of Robert Kiyosaki, Dimitri has spent the past decade studying and practicing - and teaching - personal finance principles. On moving to Spain in 2003, he began managing financial education clubs, and now works as a financial coach and speaker. Visit Dimitri's Speaker page to learn about how reading about the Nine Steps helped him clarify his mission as a financial coach, inspiring him to help others regain their power and become masters of their destiny and the destiny of the planet.
Resource: Post-consumers and paths to simpler living
The Bargain Hunter recently took a look at the many and varied faces of “simple living” that make up the movement being dubbed “post-consumerism.” Based on the concept of replacing mindless consumption with conscious choice, the movement stresses satisfaction with life over consumer mania, and embraces a wide variety of life and spending choices without judgment. Article writer Rana Cash takes a look at the movement through two books, The Heart of Simple Living by Wanda Urbanski, of PBS’s Simple Living series; and Get Satisfied: How Twenty People Like You Found the Satisfaction of Enough, a collaborative effort between Carol Holst’s Postconsumers.com and the Semel Institute for Neuroscience and Human Behavior at UCLA. Read her summary of 7 Paths To A Better Life for a quick introduction to reducing the stresses of "more, more, more."
Speakers, Groups, and Classes
For over a decade, NRM Foundation has provided a hub for what we once called the "speakers' bureau," a loose association of volunteers and professionals who have followed the FI Program, and want to share this approach to achieving financial sanity and freedom. You can find people in your area (or list yourself) through the Speakers and Discussion Groups sections of this site. Don't see a group in your area? Use the free Group Study Workbook to start one! Contact the wiki administrator to highlight your new offerings in "What's New!".
Speaker: Vicki Robin's Fall Classes!
One of those speakers happens to be one of the founders of this movement: Vicki Robin. She's offering a Kickstart Your FI Engine three session teleclass starting Sept. 14. The topic is starting and setting up the systems to support you in keeping with the nine steps in your daily life. See Vicki's Speaker Page for more information on this and her other FI classes.
On The Wiki: Join the Fun!
Do you have ideas for how to improve financialintegrity.org? Join in the fun – moderating the wiki is a shared volunteer responsibility and it really connects you to what’s going on near and far. We’d love to have you join the team! Contact info@financialintegrity.org.
In the News: Living on $18,000 a year -- by choice
We tend to think of this as “low-income,” something to be avoided, perhaps feared. Liz Pulliam Weston brings some perspective to the subject as she blogs on MSN Money about three college-educated people, in three different stages of life, who have chosen to live frugally in order to pursue their interests, from starting businesses to help others get off the treadmill, to living more simply. Each has figured out what is “enough,” and creatively applied principles of thrift and savings (see Step 3 and Step 6) to achieve their goals. Most important, says Liz, is attitude: “These three people were so delighted with their lives -- and excited about the future -- that it was positively contagious.” So much for fear. Her post contains specific tips and informative links about practical ways to reduce costs and toxic debt: while not everyone will be comfortable with the level of frugality chosen by her interviewees, she says, everyone can learn from their experience. (Check out Liz's related article "A Car Payment Is Not a Fact of Life.")
Resource: Self-Help Credit Union
While the “life energy” in your savings is working for you, it can also be working to build communities and provide opportunities that change lives. One nonprofit credit union, Self-Help, provides opportunities for socially responsible investing that helps create community stability and economic inclusion, one low-wealth family or small business at a time.
Resource: One-Stop Source on Municipal Bonds
Do you incorporate municipal bonds ("munis") in your investment strategy? Would you like to, but you're not sure how to find and evaluate various bonds and options? For an official source of information and disclosures regarding specific bonds, and investing in municipal bonds in general, check out EMMA here.
Tools and Examples: Mutual Fund Expense Ratios – do they matter?
If you're invested in Mutual Funds, see the post on Mutual Fund Expenses which explains the recent market forces behind the largest spike in costs since 2000, and also answers the question, “why does this matter?” Remember the Step 9 "low-cost" criteria for investments? It’s wise in more ways than one. High turnover rates – of both fund holdings and performance-obsessed fund investors -- can turn a high yearly rate of return into investor losses. Find out more.
Resource: Personal Finance Templates
How much does your debt really cost? Which debts should you pay down first? Need to compare mortgage pay-off strategies? There are free personal finance spreadsheets and calculators that may offer just the tool you need, without having to purchase expensive software. See examples here.
Tools & Examples: What to Look For In An Online Retirement Calculator
While the eighth step of the Financial Integrity Program is the most fool-proof way to estimate your cross-over point, for folks who would like a tool to help think through all the "what ifs" of the future, Steve Vernon of CBS Moneywatch.com blogs about what features he considers essential in online retirement calculators. His detailed criteria are much more tailored to holistic FI thinking than the average financial advisor's.
In the News: Global food price bubble caused by index fund speculators?
Leading Indian economist Jayati Ghosh outlines the impact of financial deregulation, the domino effect of the US housing market collapse, and the “moral hazard” of government bailouts, in creating a | global food price bubble. From late 2006 through December 2009, primary commodities prices increased very rapidly, suffered a collapse, and began rising sharply again. This was due not to real economic forces, but rather to increased speculative trading in commodities futures, after deregulation allowed trading by agents not holding physical commodities, particularly investors in index funds. While global demand and supply remain relatively stable, low interest rates and the perception that commodities are low in risk have led financial speculators to drive up futures, triggering price spirals that could result in global stagflation reminiscent of the 1970s. Dr. Ghosh believes traditional fixes such as raising interest rates are likely to be counterproductive: only regulation of the commodities futures markets and thoughtful price stabilization measures offer a real hope of interrupting the cycle.
Member Profile: Monika
Meet Monika, a young professional in South Australia, who had the courage to question old attitudes and certitudes linking “income” with “fulfillment” and home ownership with adulthood, independent of personal values. A Government lawyer whose job involves devising environmental sustainability policy, Monika felt financially disempowered despite a comfortable income. Read her story of discovery as financial integrity provoked excitement and curiosity, and led her to find her “tribe” in the worldwide FI community, and renewed purpose – and personal commitment -- in her work in sustainability.
In the News: Wall Street “Flash Crash”
As reported in CNNMoney.com, the role of market rules for handing excessive volatility and the lack of regulation of high-speed computer trades in the May 6th “flash crash.” The ultimate cause of the event is still unknown, but automated systems that continued to place trades during a cool-off called by the NYSE, misinterpreting the resulting lack of bids as a fall in prices, appear to have played a central role.
Six major US stock exchanges have agreed to new guidelines for coordinating halts and slow-downs, aimed at preventing a repetition of the event, and the House Financial Services subcommittee will hold a hearing May 11 to gain more information.
In the News: Effects of the Economic Crisis in Greece
Columnist Terence Corcoran of Financialpost.com provides timely commentary on the causes of the debt “Trojan horse”, the political and economic complexities of resolving the situation, and potential regional and global repercussions.
On The Wiki: 2010 WRITING COMPETITION RESULTS
The power of stories – they answer the question wise people ask as they consider adopting a new approach: “Yes, but how does this work in real life?” Well, this FI stuff works in myriad mysterious ways to help people create financial lives that support personal and global fulfillment. We want to thank ALL those who’ve contributed their personal take on Financial Integrity – every story is fascinating and informative – and all are posted online for your perusal in the STORIES section.
We’re honored to announce the 2010 writing competition awards, as chosen by the NRM Board:
- Most useful: Teach Your Children, by Colleen Pang
- Most engaging: Am I Already At The Peak? by C. Laidlaw
- Best Poem: New Day, by Jeff Jackson
These winners are now invited to join the selection team for the 2011 awards. Start writing your drafts now -- no need to wait for next winter – all Stories posted between now and next year will automatically be entered in the 2011 competition.
New FI Wiki Administrator: Helen Passey
We welcome Helen Passey as the new Administrator of the FI wiki, the online encyclopedia of all things related to Financial Integrity! As chief cat-herder of the otherwise all-volunteer wiki participants, Helen may be contacting you in the near future to find out what we can do to make the website and it's offerings more useful to you -- and what YOU can do to more actively participate in supporting and collaborating with others charting a new road map to holistic economic fulfillment. Contact her at helen (at) financialintegrity (dot) org
Member Profile: Alan Seid
Alan Seid has been applying the FI Program since 1992 when he was in his early twenties. You can read Alan's story that shares how a young family is charting their path to Financial Integrity, and how he's created a fulfilling career based on sharing with others the practices he's found most effective in his own life. Among various interests, he provides trainings and consultations through his company Cascadia Training & Mediation on a variety of subjects, including the Financial Integrity Program, in both Spanish and English. Find out more in his Speaker posting.
Resource: National Foundation for Credit Counseling
The Nine Steps have helped many get back on track from deep debt -- but if you're seeking additional outside assistance, you may want to research whether the agency you're considering working with is a member of the National Foundation for Credit Counseling. The NFCC is the national voice for its members, which are nonprofit, mission driven, community-based agencies. The NFCC and its Member Agencies have developed and delivered financial education programs and counseling services to millions of Americans for nearly 60 years.
In The News: Elinor Ostrom Wins Nobel in Economics for Common(s) Sense
With all the hubbub about a certain Nobel Peace Prize, you may have missed the amazing news that Elinor Ostrom was the first woman, and a political scientist not an economist, to win the Nobel for Economics in December. Ostrom's work emphasizes how humans interact with ecosystems to maintain long-term sustainable resource yields, and has turned some key sacred cows of economics on their head "What we have ignored is what citizens can do and the importance of real involvement of the people," she explained. Of course it was easy to miss the news when their was such a dearth of coverage, but this article in YES! Magazine featured an informative interview with the Laureate.
In The News: Speculative-Grade Bond Investments To Come Due In 2012 Flood
As is starting to be reported in the New York Times, and is featured in a study by Standard & Poor's, there will be a drastic rise -- estimated at more than $852 billion -- in speculative-grade bond debt coming due in 2012- 2014. This is on top of $859 billion in expiring US Federal debt that will need to be refinanced in 2012 (on top of any current deficit), other national stimulus debt accumulated across the world, and more highly rated corporate and municipal debt. All this is forecasted to create a "debt wall" that the global economy will run smack into starting around 2012. "Junk bond" debtors are scrambling to refinance ahead of the wall, while rates are still low and the market is having a renewed frenzy for risky investments.
Member Profile: Judi Martindale
Judi Martindale integrates FI Program principles into her professional fee-only financial planning services. She also has a unique offering that helps clients get really focused: a retreat house on Pismo Beach, which allows for in-depth sessions in a relaxed, introspective environment. After 20 years as a leader in her field, Judi writes, "Financial wealth is meaningless without personal wealth. When our own personal values conflict with our status, obligations or balance sheet, we can become conflicted inside." On becoming an FI wiki member, Judi wrote that she realized this program "actually provides the financial groundwork for money coaching that I found lacking" in other money coaching programs.
Resource: RSF Social Finance - nonprofit financial services
RSF Social Finance offers investing, lending, and giving services to individuals and enterprises committed to improving society and the environment. They also offer a blog "Reimagine Money" that recently gave tips for personal philanthropic decision-making in response to disasters like the Haitian earthquake. (Make sure to also peruse the comments from other seasoned "social investors", e.g. by Bhavana — February 2, 2010 with on-the-ground experience gleaned from the 2004 Tsunami.)
In The News: New task force shines light on real-world results of tax avoidance
Both The Guardian and Forbes have cited research, from their different editorial perspectives, that explain the real-world effects of tax evasion by multinational companies. New research by US think tank Global Financial Integrity (GFI) shows that poor countries are losing up to $US 107 billion per year in tax revenues as a result of trade mispricing by multinational companies. That's equal to one-and-a-half times the global aid budget and an average of 4.4% of the entire developing world's average revenue. Trade mispricing is defined as "the deliberate over invoicing of imports or under invoicing of exports, usually for the purpose of tax evasion" and is a hot policy topic these days. Forbes cites a GFI representative saying, "The reputational risks [of getting caught] are enormous. Shareholders need to know this." GFI has spearheaded The Task Force on Financial Integrity and Economic Development -- a global coalition of civil society organizations and more than 50 governments working together to address inequalities in the financial system that penalize billions of people. Read the Forbes and Guardian articles.
(FI moderator note: Corporations don't just do this to poor countries. Most companies proudly tout their efforts to lower their tax payments any way they can. Their definition of financial integrity is getting the best return for their shareholders. How do you think FI applies to this issue? How does it apply to your tax payments? This could be an interesting discussion topic for discussion groups.)
Discussion Group: Montpelier and Waitsfield Vermont
Montpelier and Waitsfield Vermont have new groups forming September/October, lead by Jill Arace. Two courses of five two-hour classes using the book Your Money or Your Life and the Financial Integrity Program Guide. See Jill's group entry for more details.
In The News: US & European health improves during economic downturns
CMAJ September 2009 issue features surprising new review of studies over the past 80 years, conducted at the University of Washington and published in the Canadian Medical Association Journal, sites that health overall gets better in rich nations – especially in the US and Britain -- during economic downturns. Mortality rates due to in preventable causes of death, including motor vehicle crashes, cardiovascular and liver disease, and influenza and pneumonia decline, and neonatal health improves.
(FI moderator note: Have there been positive affects of the downturn on your life? This could be an discussion topic for discussion groups.)
Resource: New book -- In CHEAP We Trust: The Story of a Misunderstood American Virtue
From Dumpster-diving and the psychology of hoarding to Americans' thrifty responses to war and recession, "In Cheap We Trust" teases out the connotations behind the word cheap and explores the wisdom and pleasures of not spending every last penny. Author Lauren Weber identifies herself as a cheapskate who learned her behaviors from an extremely cheap economist father. There are a few notable FI’ers who were interviewed for this book (we won’t name names.) Lauren is currently on a media tour – find her at a book store, independent and otherwise, near you.
In The News: Watch your statements and inserts (if you haven't already dumped plastic)
NY Times, May 17, 2009 featured some interesting news regarding credit cards and the new regulations due to be signed soon. Interestingly, US Senators on both sides of the aisle rejected an amendment calling for a limit on usurious interest rates. (My senator's office replied to my inquiry with "Yeah, I don't know why she voted no on that... I'll have to get back to you." I'm still waiting.) The New York Times covered the industry threat of restricting credit, adding annual fees and penalizing "deadbeats" who pay off their balances, if the legislation passes. Meanwhile an op-ed explained what happened with the South Korean credit card crisis. Salient factoid: "In 1999, after the Asian financial crisis, the South Korean government encouraged banks to issue credit cards to as many people as possible as a way to increase consumer spending... In 1998, the household savings rate was 25 percent. By 2007, it had fallen to 2.5 percent."
Bottom line: more incentive to READ YOUR STATEMENTS, INSERTS, CONTRACTS carefully, or perhaps just close the accounts? Many online commentators recommended dumping the banks altogether and joining non-profit credit unions.
Member Profile: Tom Trimbath of Dream. Invest. Live.
Tom Trimbath is author of Dream. Invest. Live. a book about his personal take on Step 9 of the FI program. Writer, Speaker, Teacher, Photographer, Engineer, Entrepreneur... Tom's synthesis of the FI program and other wise financial advice has given him the freedom to pursue exciting adventures, chronicled in four other self-published books and in his beautiful nature photography.
In The News: 100 Most Useful Personal Finance Websites
A recent article listed MSN Money personal finance columnist Liz Pulliam Weston's favorite internet destinations for saving money, time and headaches. You may have seen some of these sites in our Resources section, but now you can get Liz's professional reviews, and find new sites to add to the FI resources. (You may note that financialintegrity.org is rated third on the list, by the way!) Read Liz's list.
Resource: Conscious Bookkeeping
Many people tell us "Wouldn't it be nice if people had access to all the different types of coaching and training that's involved in running all the financial aspects of one's life?" Well, Conscious Bookkeeping seems to be just such a resource. Started by a somatic psychologist-turned-bookkeeper, it's a full-service education and advising source. Founder Bari Tessler-Linden now seems to have created an opportunity for her own work-life balance, by creating an alliance of aligned practioners to provide one-on-one support for people who seek to align their finances with their values. Find out more.
Member profile: Jonathan Allan, Rochester Minnesota
We'd like to introduce you to some of the people who participate in this FI community-edited website. Jonathan Allan is the co-author, with Lynne Cantwell, of Live Simply in the City. You can find out more about Jonathan several ways, through his Story, his Profile page, and through his list of other contributions to this FI wiki.
Resource: The all new FI Group Study Workbook is now available for free download!
For use with the Program Guide and/or the FI Instructor Guide, this workbook will help small groups help each other to implement all nine steps of the program. A hands-on technical guide to doing the steps, as well as a guide to deeper conversations around individual experiences and the insights that come from engaging with this new transformational approach to money. Download the Guide here.
Also, NRM's previous "Study Guide for Groups", covering Steps 1-6 for use with Vicki Robin's book Your Money or Your Life has now been revised by study group leaders Dave Wampler and Sandy Aldridge, to work with the latest edition of the book (see below). You can purchase a PDF of that product through the Simple Living Network.
In the News: Financial Integrity participants featured in AARP
Jane Dwinell and Sky Yardley, as well as Vicki Robin and other long-time FI'ers, are featured in the April AARP bulletin about seniors living frugally. You can read more about Jane and Sky's story on the wiki, and check out Jane and daughter Dana's blog, which features practical common sense for values-based living.
Member profile: Sherry Nash, Eustace Texas
We'd like to introduce you to some of the community members who participate in this "wiki" website. Meet Sherry and get a sense of how the program has created transformational change in her life. See how she showcases her FI-related services using her wiki profile.