September Personal Finance Newsletter
September 19, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The September personal finance newsletter is now available. It includes an update on market conditions and advice on the best response to the continued stock market volatility. In addition, we have perspective on the European debt crisis and information on spousal IRAs and healthcare flexible spending accounts. Please click here to read the newsletter.
Remodels and Renovations that Pay Off Financially
September 19, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Special Guest Post by North Texas Home Designer Lisa Baer
Move or remodel? Given the current condition of the housing market in North Texas and elsewhere in the country, many homeowners are finding remodeling a better option than moving. A strong housing market may be some months away, and many homeowners are considering investing in their current homes and foregoing the move. If you are contemplating an update, a remodel or are just making some basic improvements, it’s important to understand which renovation are coveted by potential purchasers and which investments in your home actually provide a return on investment.
One benefit of renovating in the current economic environment is potentially greater value for your remodeling dollar. Some new home builders have turned their focus to remodeling because of the slowdown in the new home market. At least in part, the abundance of contracting options has made remodeling bids competitive. Homeowners always have to do their homework – perhaps even more so – but when it comes to evaluating contractor pricing, competition can mean high quality work at a good price.
In my own design practice, the economy is a contributing factor in homeowners’ approach their remodeling plans. Homeowners’ will more often scale back their plans or implement them in phases over time. In my view, this thoughtful, deliberate approach often results in better long term decisions. Using an experienced contractor, designer and consulting with a local real estate professional can all contribute to a remodeling plan that will maximize your investment in terms of enjoyment and livability and also provide the best potential return.
In thinking through your remodeling options, there are typically two approaches to take. You may decide to splurge just for the pleasure of having something that you’ve always dreamed about – the steam shower, the Italian marble master bath or the professional grade stove. The other approach is the pragmatic one – replacement windows or a higher efficiency air conditioning unit. There is a great deal of middle ground between these two approaches and the middle ground is where most homeowners find themselves in prioritizing their remodeling to-do lists.
So how do you “value” a remodeling project? Value can be determined by both the enjoyment that a homeowner derives from the improvement as well as the likely return on your investment at resale. There are a lot of other factors that come into play as well. Regional differences in homeowner and buyer preferences are a large consideration. For example, a deck addition in San Francisco will recoup more that 100% of the investment, but the same deck in Columbus, Ohio is likely to recoup less than two thirds of its cost.
Before
After
A deck addition in North Texas? Don’t bother. A flagstone patio on the other hand – especially with space to eat and lounge – that is a coveted improvement. We recently removed an old, high maintenance wood deck in Keller, Texas and reworked the area with flagstone and updated the landscaping plantings. The update opened up the entire rear of the house and completely transformed how the homeowner’s use the space. By using high quality materials that have impact and longevity, this project will almost certainly add value if (when) the homeowners sell the home. (All Photos Courtesy of Baer Home Design.)
Add even a basic outdoor cooking area or a fireplace and you are talking about serious value add. Other hot buttons in North Texas and throughout the country include (not unexpectedly) kitchens and baths. We see higher end finishes – stone counter tops and stainless appliances for example – turning up in the kitchens of moderately priced homes. Baths too are becoming more luxurious with the addition of stone floors and counter tops, soaking or jetted tubs and interesting lighting.
There is one other important consideration in your remodeling plans – what will the impact of your project be on the rest of the home? A super high end kitchen may have a different perceived value if it accompanied by a master bath that hasn’t been updated in 25 years. Depending on your budget, you may choose to spread your remodeling dollars around the high impact areas.
What remodeling projects provide that combination of enjoyment and return?
According to the Remodeling Magazine’s Cost v. Value Report 2010-2011, the number one overall project was entry door replacement at over 100% of costs recouped. This small investment (an average of $1200 according to the survey) can add tremendous curb appeal to a home which translates into higher resale and reduced time on the market. From a homeowners’ perspective the front door may see a little ho hum, but never underestimate the impact of a small improvement. Pulling up to a beautiful front door or opening that door repeatedly for guests (who will naturally comment on the beautiful, new door), can provide a great deal of pleasure and pride that can be hard to assign a dollar value to.
New front doors aside, there are some home improvements that generally add value to a home and some that rarely make a difference when it comes to eventual buyer appeal and consequently, provide little return.
Paint and Wallpaper
There is no other home improvement that can change the appearance of a home as much as paint. Some estimates indicate that painting the interior of your home can return 90%, other estimates are even higher. Fresh paint can instantly update a space and can provide a clean backdrop – critical in home sale preparation. If you intend to stay in your home, paint is a great way to add personality – color can be a wonderful design tool. Explore your preferences and style as paint is inexpensive and easy to change. If you intend to sell at some point in the not too distant future, keep your color selections neutral.
Wallpaper too can be a great way to inject style into your home but today, the use of wallpaper is a slightly different story than paint. Wall coverings of any kind make a strong personal statement so use it sparingly – even if you are staying in your home for the foreseeable future. A powder room or an accent wall in a bedroom can be a high impact, low cost way to utilize wallpaper that you love and it can be easily changed if you tire of it. If you are selling, avoid wallpaper altogether. In fact, strongly consider removing any wallpaper that you currently have. Today’s buyer generally wants nothing to do with wallpaper and it only adds another chore on a purchaser’s to-do list and a long list can cause a buyer to move on to the next wallpaper-less property.
Wallpaper Before
New Look After
We removed wallpaper and did a few more updates – granite counter tops and stainless appliances – in the Colleyville kitchen pictured prior to it going on the market. Just the removal of the wallpaper changed the entire feel of the critically important kitchen and breakfast area. Buyers were wowed and the home sold quickly – even in a challenging real estate market.
Kitchens
Kitchens are the focus of most remodelers’ dreams and most well thought out kitchen improvements provide at least some return on the investment – most estimates range between 70-80%. We’ve all heard that kitchens are the “heart of the home.” Often that translates into the room that experiences the most wear and tear. Kitchens also have a lot of elements – cabinetry, hardware, flooring, etc. and those elements tend to follow style and color trends. This means that your kitchen can appear dated before almost any other room in the house.
A complete kitchen remodel may not be necessary. Sanding, painting or staining tired cabinets and replacing old cabinet hardware can make a tremendous difference in the appearance of a kitchen. If your remodel involves new cabinets and other surfaces, keep your selections simple and classic. Overly designed details not only add cost, but they run the risk of quickly dating a design.
Quality appliances and updated flooring counter tops and backsplashes are hot buttons for home purchasers. By budgeting carefully and making trades offs of some lower cost items, you may be able to afford higher priced items that are more desirable to home buyers.
Before
Updated Look After
The Keller, Texas kitchen pictured was already efficient (for the most part) but even the most well chosen kitchen elements grow tired after 20 plus years. We embarked on a total remodel – from new cabinets to cabinet hardware. By adding classic details and keeping the overall design simple, these homeowners should be able to enjoy this kitchen for years and years.
Bathrooms
Bathrooms are very similar to kitchens in that the return on improvements can be high – around 78%. If kitchens are the heart of the home, baths run a close second – especially master baths. Depending on your region of the country, a master bedroom with an adjoining bath is almost expected, even in modest price ranges. In higher end homes, separate tub and shower, double vanities and high end finishes – travertine, marble, granite – could well provide a solid return.
Solid upgrades in modest price ranges include fresh tile, paint, fixtures and lighting. Those elements can be purchased in a wide range of prices. Selecting carefully and utilizing more neutral colors and designs for the fixed elements (flooring, tile, sinks) and injecting interest and texture with the less expensive more easily changed items (lighting, shower curtains, accessories) is the best way to balance your style and maximize your potential resale.
Before
After
The master bath update pictured illustrates the power of wallpaper removal, neutral paint selection, updated cabinet paint and hardware, and how lighting and mirror selection can transform a space. Other updates in that remodel included granite countertops, updated sinks and faucets.
Flooring
After
Before
In our kitchen remodel project below, we painted the existing golden oak cabinets and added new stone counter tops and back splash. One of the biggest elements that dated the original space was the 8”x8” glossy white tile. A 16”x16” porcelain tile laid in a brick pattern is a classic, durable and beautiful addition to this hard working part of the home.
Landscaping
Landscaping is another area of home improvement that provides a solid return on investment even though the actual numbers can vary by region and often fall within the range of 60 – 75%. Curb appeal is absolutely critical if you are anticipating selling your home. At a minimum invest in clean up, trimming shrubs and adding seasonal color.
If you are staying put, there are other considerations. Outdoor living areas are all the rage and they are certainly the least expensive way to add living area to your home. Keep useable space in mind when contemplating an outdoor living area. Waterfalls and ponds are beautiful yes; useful, no. Seating areas, fireplaces and outdoor kitchens fall into the useful category. Consider the flow and style of your home. Linking your interior and exterior spaces visually and with regard to style provides continuity – and enjoyment. Lastly, choose quality materials. Stone, locally adapted plants, interesting accents and durable, comfortable furniture provide both real return and a great deal of pleasure.
Final Thoughts
In spite of recent declines in the housing market and the challenging economy in general, our homes often remain our largest investment and the place where we relax, unwind and enjoy our friends and family. If you make remodeling decisions deliberately while balancing your enjoyment with the potential return on your investment, your home will provide returns every day in the enjoyment and comfort that your home provides. If you eventually sell, you will probably see another type of return ($$$!) as well.
About the Author
Lisa Baer
Lisa Baer brings broad real estate, design and business experience to Baer Home Design. Lisa is an Interior Design Society Member (IDS), Real Estate Staging Association Member (RESA), and an Accredited Home Staging Specialist (AHS). She is a Texas Real Estate Licensee Certified by the Graduate Realtors Institute (GRI) and an Accredited Buyers Representative (ABR). Lisa is a multi-state transferee and has designed and built multiple homes. Lisa’s business experience has honed her strong project management skills and her sensitivity to budget and time frame. For more information, please visit www.baerhomedesign.com or contact Lisa directly at 817.657.0185 or via email at lbaer@baerhomedesign.com .
Yours, Mine, and Ours: Achieving Financial Goals as Individuals and a Couple
August 28, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Making sound financial decisions is challenging enough when it’s just you – one person deciding on what’s best for his or her short-term and long-term goals. But add in a spouse, and the choices multiply! You now have two more sets of goals – your spouse’s and your combined goals as a couple. Plus, we all bring our own habits, attitudes, and history with spending, saving, bookkeeping, and planning for the future.
How do you accomplish what’s most important to you together and as individuals?
First, establish shared financial goals – this should be a combination of each of your individual priorities that you have discussed. This process generally works best if each person writes down his and her own goals before sharing them together. You will need to prioritize your financial resources toward meeting the ones that are most important to each of you.
Second, create the action steps and spending plan that support your goals. Depending on your history with spending and saving, you may want to consider setting up automatic savings contributions, shifting spending in certain areas to cash only, getting rid of credit cards, or other techniques that work for you.
Third, manage the day to day. Each person should have some responsibilities for managing your financial lives. Even if one person handles the majority of the financial tasks, the other person should still take the time to understand their overall financial situation, where all accounts are held, how investments are allocated, bills paid each month/year, etc.
Fourth, review your progress monthly and yearly. Set a monthly date to review progress on spending, saving, other action steps, and day-to-day financial management. Once a year, review your net worth statement and take stock of how overall progress is coming towards achieving your goals.
Money is a powerful tool to fund the lives we envision, and it can also be a source of friction and great pain in relationships. Sometimes involving a neutral professional – either a counselor or financial planner depending on the nature of the issue – can support you in moving the relationship and your financial goals forward.
To go more in depth on this topic, plan to attend my free workshop on Couples and Money at the Keller Public Library on Tuesday, September 20 at 6:30 pm. The library requests registration to library@cityofkeller.com or (817)743-4800.
May Personal Finance Newsletter
May 16, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The May 2011 Personal Finance Newsletter is now available. It includes articles on long-term care planning, mid-year tax considerations, and deciphering health savings vehicles. A link to a great article on the relationship between how we spend our money and happiness is also included, as well as the monthly investment market update. Click here to read the newsletter.
Should you pay off the mortgage?
May 18, 2010 by Jean Keener, CFP, CRPC, CFDS · 1 Comment
One of the best financially freeing moments in life is the day you compare your savings and mortgage principal balances and realize that you could pay off your mortgage if you wanted to. If you’re at that point, congratulations! If you’re not there yet, keep saving; it can come sooner than you think.
Of course, immediately following the discovery of being able to pay off the mortgage comes a question: should I? Here’s how you decide:
First, consider what you would do with the money if you didn’t pay off the mortgage.
Would it sit in savings, be invested for long-term retirement goals, or something else? Based on your plans if you didn’t pay off the mortgage, you can estimate a rate of return you expect to receive. From this rate of return, you’ll need to subtract taxes paid on the earnings (15% if capital gains, your income tax rate if regular interest).
Second, figure out what your mortgage is costing you.
Look at your interest rate, calculate the annual interest expense, and subtract any income tax savings you’re receiving. Be sure to avoid over-estimating the benefits of tax savings. For example, if your mortgage interest is $5,000 and you have another $8,000 of itemized deductions, your total itemized deductions are $13,000. If you’re married filing jointly, the standard deduction is $11,400 this year. So the mortgage interest is only increasing your deductions by $1,600. If you’re in the 28% tax bracket, this equates to a $448 tax savings.
Third, compare your answer in step 1 with your answer in step 2.
If it’s costing you more to keep your mortgage than you would earn with the money invested or in the bank, then you should generally pay off the mortgage. If you can get a greater return on your investments than what your mortgage is costing you, then you should generally keep the money invested and wait to pay off the mortgage.
Of course there are exceptions and other considerations including:
If you would be taking the pay-off money out of a pre-tax IRA or deferred compensation in a lump sum, take a really close look at the tax consequences of that lump sum withdrawal! They can often totally cancel out any savings on the mortgage interest.
If you would be using “retirement” savings funds to pay off the mortgage, you really need to look at your retirement projections and ensure that they still work with the funds withdrawn. If your projections rely on you beginning to save what you’re currently paying on the mortgage, know yourself. Will you stick with this savings program? If not, probably best to just keep your retirement funds intact and continue paying the mortgage.
If paying off the mortgage would take your emergency funds dangerously low or short-change funds for other important goals, it’s likely not a good idea.
Making your decision
While it seems like a fairly straight-forward question, when you think about the whole picture, you realize there are lots of what-ifs and options to consider. The important thing is to take time to do your homework, complete the analysis, and seek professional assistance if needed.
Even if the process reveals you’re better off with the mortgage, you might still want to go ahead and pay it off because of the peace-of-mind benefit that comes from not having any debt. If that’s the case, by going through the process thoughtfully and thoroughly, you will know what you’re giving up financially for that peace of mind so you can make an informed decision about whether it’s worth it to you.
And if the process does show that you would be better off getting rid of that mortgage, you can move forward with confidence.
Of course, everyone’s situation is different. While the process described above addresses many considerations, you may have some issues not addressed here or that are unique to you. Make sure you fully consider your own situation before making any decision.
Pink Slip Lemonade
October 5, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
As the economy begins its recovery but the job losses keep coming, many are finding the need to be creative with their careers and their financial situation. Last week, I had the pleasure of spending some time chatting with fellow Garrett Planning Network member Sherrill St. Germain, CFP®. Sherrill’s built a financial planning practice in New Hampshire around helping people make career transitions without wreaking havoc on their finances.
Because so much financial information is needed right now for career changers and those between jobs, I want to highlight a fantastic series of blog posts that Sherrill did in June. In this series aptly titled Pink Slip Lemonade, Sherrill – along with some guest bloggers — cover a range of financial planning topics relevant to the laid-off and the employed-but-worried, highlighting strategies that enable families to survive — and even thrive — in these difficult times, as well as better weather future financial storms. Click here to read Pink Slip Lemonade.
How to Choose a Financial Planner
August 31, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
You may be considering seeking some professional financial advice. Or, if you already have a financial advisor, you may be wondering if they’re doing a good job for you.
You’re likely juggling 2 sets of questions as you consider this decision:
The first set is personal:
- Do I like the advisor enough to spend significant amounts of time in their office?
- Do I feel comfortable sharing all of my personal financial information, dreams, and goals?
- Do I feel like the advisor understands and respects my lifestyle and goals and can help me achieve them?
With this first set, the answers are truly personal, and you should feel comfortable trusting your gut instinct after meeting the advisor and doing an initial interview.
Unfortunately, this is sometimes as far as selection process goes and the advisor choice is based exclusively on these personal connections. This can lead to a lot of regret later on.
The second set of questions is fundamental and every bit as important as the first set.
- Can I trust this person?
- Are they competent?
- Do I understand their fees and feel confident they’re a good value?
Answering these 3 fundamental questions requires some digging.
To determine the trust factor, I suggest interviewing the advisor using this Comprehensive Advisor Checklist. In addition, you should receive a copy of their privacy policy and form ADV part II for Registered Investment Advisors. You should also check their regulatory history to ensure it’s clean. For Registered Investment Advisory firms, go to http://www.adviserinfo.sec.gov/. For broker-dealer representatives, go to FINRA’s Broker Check. It also doesn’t hurt to do a google search of the advisor.
To determine competence, you want to understand what education and experience they have in the financial areas important to your situation. Be aware that many training programs provided by broker-dealer firms are essentially sales training programs, not financial planning programs. You want to identify their specific financial planning education. The Comprehensive Advisor Checklist also provides some very good guidance in this area. In addition, you want to be sure they can explain their investing approach in clear, down-to-earth terms. If it’s too complex to understand, at best it’s more complexity than you need. At worst, you could be walking into a scam or sky-high fees that will seriously damage your returns.
Fees are the last area. The Comprehensive Advisor Checklist also provides some solid guidance here. The financial services industry is not known for transparency of fees, so you may have to be persistent to get the answers you need. If the advisor is not forthcoming, you need to walk away. Once you get the information, you will want to weigh any potential conflicts of interest in compensation model, the quality and customization of the advice to be received, and the scope of the advice (is it just investing or does it also cover other financial areas?).
Only after you’ve looked at both the personal and fundamental questions should you make a decision about who to work with.
I provide fee-only advice to individuals at all financial levels, and would be honored to be included in your consideration of financial advisors. I invite you to conduct a thorough review of Keener Financial Planning using the resources suggested above. You may wish to start with the Interview Jean, About Us, and Schedule of Service pages, and then call 817-993-0401 to schedule a complimentary initial consultation.
Couples, Investing, and Risk
July 21, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
It’s pretty common for spouses to be at different points on the risk tolerance spectrum. If you’re one of these couples, you know that these differences can have varying effects on the relationship and your investing behavior.
Sometimes, the more conservative spouse just completely delegates investing decisions to the other spouse and just shuts their eyes when the statement comes. This is not the ideal solution because it’s important for both spouses to be educated on your investments in case something happens to the decision-making spouse. Lack of information can lead to stress and poor decisions with long-term consequences in this situation.
Other times, there’s a constant state of friction and stress whenever investments are discussed. The more conservative investor may veto anything that sounds the slightest bit risky. Or the more aggressive investor may rush to make investing decisions without fully explaining or researching the risk to the more conservative spouse. This approach is also clearly not what you want in your relationship!
The bottom line is … You can have differences in this area and still work quite productively together on investing. In fact, you can use your differences to prompt each other to thoroughly research and discuss each investment option resulting in better investment decisions. So how do you get to this point?
First, define your goals
Making good investment decisions is difficult if you don’t know what you’re investing for. Making sure you’re on the same page–or at least reading from the same book–when it comes to financial goal-setting is the first step toward dealing jointly with investments.
Make sure the game plan is clear
Making sure both spouses know how and (equally important) why their savings are invested in a certain way can help minimize marital blowback if investment choices don’t work out as anticipated. Second-guessing rarely improves any relationship; making sure both partners understand from the beginning why an investment was chosen, as well as its risks and potential rewards, may help moderate the impulse to say “I told you so” later.
If you’re the more aggressive investor …
Take time to understand your spouse’s concerns. You may need to provide additional information to increase his or her comfort level, but you won’t know what to supply if you automatically dismiss any objections. If you’re enthusiastic about an investment, concealing potential pitfalls could make future joint decisions more difficult if your credibility suffers because of a loss. A more cautious spouse may help you remember to assess the risks involved.
Remember that you can make changes in your portfolio gradually; you don’t have to become more aggressive all at once. And if you’re an impulsive investor, try not to act until you can consult your partner.
If you’re the more conservative investor …
If you’re unfamiliar with a specific investment, research it. Though past performance is no guarantee of future returns, understanding how an investment typically has behaved in the past or how it compares to other investment possibilities could give you a better perspective on why your spouse is interested in it.
Consider whether there are investments that are less aggressive than what your spouse is proposing but that still push you out of your comfort zone and might represent a compromise position. For example, if you don’t want to invest a large amount in a single stock, a mutual fund that invests in that sector might be a way to compromise. (Before investing in a mutual fund, carefully consider its investment objective, risks, charges, and expenses, which can be found in the prospectus available from the fund. Read it carefully before investing.)
What if you still can’t agree?
You could consider investing a certain percentage of your combined resources aggressively, an equal percentage conservatively, and a third percentage in a middle-ground choice. This would give each partner equal input and control of the decision-making process, even if one has a larger balance in his or her individual account.
Another approach is to use separate asset allocations to balance competing interests. If both spouses have workplace retirement plans, the risk-taker could invest the largest portion of his or her plan in an aggressive choice and put a smaller portion in an option with which a spouse is comfortable. The conservative partner would invest the bulk of his or her money in a relatively conservative choice and put a smaller piece in a more aggressive selection on which you both agree.
Or you could divide responsibility for specific goals. The more conservative half could be responsible for the money that’s being saved for a house down payment in five years. The other partner could take charge of longer-term goals that may benefit from taking greater risk in pursuit of potentially higher returns. You also could consider setting a predetermined limit on how much the risk-taker can put into riskier investments.
Finally, a neutral third party with some expertise and a dispassionate view of the situation may be able to help work through differences.
If you and your partner have worked through investing differences, I’d love to hear what’s worked for you. Please feel free to post a comment!
Forgiveness and Money
June 15, 2009 by Jean Keener, CFP, CRPC, CFDS · 1 Comment
I invited Kristin Robertson, president of Brio Leadership, to do a guest post on the Keener Financial Planning blog this morning about forgiveness.
As we seek to manage our money in smarter ways, many times our experiences with money in our past play a key role in the decisions we’re making today. We inherit attitudes about spending and saving from our parents and early childhood experiences. Sometimes we’ve personally made mistakes with money. Or we’ve seen people that we’re close to make mistakes, oftentimes in ways that significantly affected us.
These experiences all affect our ability to be fully effective for ourselves and our loved ones in our financial lives. Sometimes, until we’ve processed these experiences, it can be difficult to understand why we continue to overspend, or why we can’t enjoy spending the money we’ve saved for a vacation, or why we feel deprived even when we have plenty. As we process our attitudes toward money, we may discover that forgiving ourselves or someone else for past mistakes is important to letting go and moving forward to happier and more productive ways of managing money.
I hope you enjoy Kristin’s article. And don’t miss the links to her site and more information on her new book.
Forgiveness: 5 Reasons It’s Good for You
June 15, 2009 by Jean Keener, CFP, CRPC, CFDS · 1 Comment
By Guest Blogger Kristin Robertson, President, Brio Leadership
Remember how a nice warm bowl of chicken soup helps you feel better when you have the flu? Well forgiveness and have the same effect when what ails you is a grievance from the past.
Did you know that you really forgive others to help yourself — not to help the other person? Surprised? In my definition of forgiveness, the goal is to neutralize the emotional charge that you carry toward a person who has harmed you. Forgiveness is like letting yourself out of jail – you release the hateful, vengeful thoughts that imprison you and make you feel bad every time you remember the hurtful incident.
So if forgiveness is like chicken soup, what are the results of enjoying a steaming, savory bowl of the stuff? Here are five personal benefits to forgiving:
1. You are healthier.
You do your body a favor when you forgive. Recent research has shown that the act of forgiveness pays dividends in the form of less illness and physical maladies. Some schools of thought state that the lack of forgiveness is the root cause of all physical illness, and that the first thought you should have when you discover a physical ailment is, “Who or what do I need to forgive?”
2. You are happier and more peaceful.
A human being is an energy-producing and energy-consuming organism. The state of non-forgiveness, along with feelings of vengeance, hate and self-recrimination, drain you of energy – they divert large amounts of your daily energy allotment, leaving less power for positive emotions and for enjoying life. Once you learn to forgive, you free up the energy that was invested in maintaining your negative emotions. Now you have energy to invest in positive experiences and enjoyment of your many blessings.
3. You enjoy improved mental health.
Recent research shows that people who learn to forgive suffer from fewer incidents of depression than before. In addition, people who forgive experience less anxiety. Before learning forgiveness, your spirit is stuck in negative emotions such as anger, resentment, and vengeance. When you forgive, you make room for more positive emotions such as love and compassion.
4. Your stress level decreases.
Stress is your response to a perceived threat. What one person perceives as a threat is not a threat to another. If you remain in a state of non-forgiveness, you have less energy to devote to seeking other perceptions of a stressor and seeing it in a different light. A large cause of stress is a lack of control over a situation or your life. When you forgive, you are choosing a different response from the past, which gives you more control over your life and reduces your stress level.
5. It is easier to stay in the present moment.
The process of forgiveness frees you from the tyranny of remembering past hurts. Your spirit no longer is bound to the past, your mind stops reviewing and re-living grievances, and you stop clinging to a victim’s role. You are able to live in the present moment, which is the most spiritually mature way to live. When you live in the present moment, you live with a heart and a mind that are wide open to perceiving the wonders and blessings of life.
It is hard to contemplate an employee in today’s workplace who doesn’t have someone or something to forgive. Forgiveness opportunities range from relatively minor annoyances to major grievances. A minor annoyance at the office, especially in cubicle-land, is the allergic co-worker who sits in the next cube and loudly clears his throat all day in the most annoying way. Can you forgive him? Or what about the customer from hell who yells at you for something you have no control over? Is that forgivable? Consider the boss who repeatedly overlooks you for promotions that you clearly deserve or who gives you a bad performance review? That is not easy to forgive. An even bigger grievance is the boss or business partner who swindles you out of a large sum of money, or who sexually harasses you. Now, that’s a big deal.
Everyone constantly faces forgiveness opportunities – at work, at home, towards you and toward others.
In my new book, A Forgiveness Journal, I present a seven step process of forgiving, that includes identifying your feelings, talking it out, changing viewpoints, gaining perspective, writing to the other person, acting and blessing the other. By following these steps, you too can reap the benefits of forgiveness. It’s like eating chicken soup when you feel bad – you will feel better all over
If you like what you’ve read so far, you might check out my book, A Forgiveness Journal, put in on your bedside table, look at it every night before going to bed. Also, you’ll want to sign up for my free monthly newsletter at http://www.brioleadership.com
Kristin is President and Head Coach of Brio Leadership, a coaching, consulting and training firm that helps builds spiritually intelligent individuals and teams so they can live lives of integrity, meaning and fulfillment. She believes that incorporating spiritual intelligence in the workplace is a way to positively transform lives and create highly productive work environments.