Checklist to Ensure That You Are Ready To Buy a Home

While we say there is no crystal ball in the real estate sector but even then, there are some easy-to-understand signals that indicate that you can consider a home purchase. The timing matters a lot especially when it comes to making such a life-changing and enormous purchase. Some of the factors that decide whether it is the right time for you to pull the trigger are:Your SavingsWhen you plan to buy a home, the first and foremost thing is to convince the lenders that you have the discipline and ability to save. If you are not able to pay the down payment of at least 10% or 20% of the value of the home, then you are financially not prepared to buy. It is imperative to show the lender a sizeable down payment. The more you pay initially, the lesser will be the amount of the loan and the less you will have to pay as interest.Then, it is not just about paying the down payment but there are many other additional charges that probably a first-time buyer would not have taken into account. It is very important to inquire about all other additional charges like property taxes, homeowner’s insurance, maintenance & repair costs, etc.


Purchasing a property lets you build equity in the form of a valuable asset but at the same time, it is important to remember that for this you should not compromise on your retirement savings, regular budgeting, or keeping aside an emergency fund.No Commitment IssuesBesides being financially viable, your house should be your commitment to stability. While buying a property there can be many types of additional costs which could be beyond your calculated amount. So, taking into consideration, the appreciation rate of the property, it will take you say four years or more to break even. In such a case, if you don’t want to bear the loss, it is important to decide whether you want or don’t want to sell the property before reaching the break-even point. For this, you can even plan to rent out your home for a few years in case you have to move and cover the amount of funds.Qualify for a Good RateThe lower the ROI on the home loan, the lesser will you have to pay as interest. The lender will no doubt look deeply at the financial picture presented by you but more importantly will pay attention towards your credit score. Your credit score is a special number that the lenders consider while offering you a loan. It determines that how likely will you pay back the amount and what ROI do they need to give you. Your past behavior towards your financial responsibilities will determine your credit score and those having a high score might be qualifying to get a loan or else you will have to postpone your decision for a while.


External FactorsApart from your personal situation, there are few external factors that need to be considered before taking a final call. People with good credit scores can get decent rates of interest. Since a home purchase is a major purchase, so even a minor reduction made can help you save thousands of rupees in the long run. Low ROI doesn’t imply that you should buy but is just an influencing factor whether to make a purchase or not.Another major factor is the current housing market. It is a buyer’s market when there is a wide range of options available and you can negotiate and crack the best possible deal. It is good to be in a buyer’s market but this doesn’t mean that you are ready to buy a home.

Choosing A Retirement Plan For Your Small Business

A qualified retirement plan can be beneficial to employers and employees alike, yet for a small business owner who is busy with daily operations, the time and effort involved in choosing a plan can seem daunting. It does not have to be.

Retirement plans come in two flavors: qualified and non-qualified. A qualified plan is desirable because it provides a vehicle for tax-deferred retirement savings for both the business’ employees and its owner, with allowable contributions in excess of those permitted for IRAs. A qualified plan also provides the employer an immediate deduction for the contributions made. Depending on the plan, it can encourage employees to maximize the business’ profits and to remain with the employer. Plans can be customized with optional features.

Non-qualified plans do not have to meet many of the requirements imposed on qualified plans, and have a wider range of features and provisions as a result. However, in most cases the employer does not get an immediate tax deduction for a non-qualified plan. Such arrangements also have to avoid “constructive receipt” by the employee in order to defer the employee’s taxes until the money is actually distributed. This usually exposes the employee to credit risk if the business fails before the deferred compensation is paid out. Non-qualified plans are sometimes useful, but most small businesses will prefer one of the qualified plan arrangements described in this article.

All of this can leave your head swimming, especially if personal finance is not your area of expertise. To simplify the exercise, think of finding a retirement plan that fits your small business like buying a new car. You should consider what retirement plan vehicle will fit your business’ size, needs and budget, as well as offering any special features you want. The more “tricked out” your retirement plan, the more costly it will be to establish and maintain.

The SEP (Simplified Employee Pension) IRA is the bare-bones model that gets you from point A to point B. It is easy to adopt, and typically custodians like Schwab or T. Rowe Price offer a basic form to start one. A SEP can be established as late as the employer’s income tax filing deadline, including extensions. After the initial set-up, the employer has no further filing requirements.

With a SEP, the employer makes contributions for all eligible employees. The common threshold for eligibility is an employee who is at least age 21 and who has been employed by the employer for three of the last five years, with compensation of at least $550 during the year. Eligibility standards can be less strict than this if the employer chooses. Contributions are an equal percentage for each employee’s income. The maximum contribution for 2013 is 25 percent of compensation, but no more than $51,000 total ($52,000 in 2014). (The same limits on contributions made to employees’ SEP-IRAs also apply to contributions if you are self-employed. However, special rules apply when figuring the maximum deductible contribution.) In a year where cash is limited, an employer does not have to make a contribution. SEP contributions are due by the employer’s tax filing deadline, including extensions.

A SEP is a great choice for a sole proprietor or a small business with a few employees, where the employer would like to have a retirement savings vehicle that allows larger, tax deductible contributions than does a traditional IRA with minimal fuss and maximum flexibility.

A SIMPLE (Savings Incentive Match Plan for Employees) IRA is also easy to establish and has no ongoing filing requirements for employers. SIMPLE IRAs are only available to businesses with fewer than 100 employees and no other retirement plan in place. These plans operate on a calendar-year basis and can be established as late as October 1.

While only the employer can contribute to a SEP IRA plan, a SIMPLE IRA allows employees to contribute to their own accounts, up to $12,000 in 2013 and 2014. Also, participants age 50 and older can make additional contributions, up to $2,500. The employer can either match employee contributions up to 3 percent of compensation (not limited by an annual compensation limit) or make a 2 percent of compensation nonelective contribution for each eligible employee (limited to an annual compensation limit of $255,000). The employer’s matching contribution can go as low as 1 percent when cash is constrained; however, the employer can use this option no more than 2 years out of a 5-year period. Unlike a SEP, a SIMPLE plan requires that the employer contribute each year.

An employer must deposit employees’ salary reduction contributions within 30 days of the end of the month in which the money is withheld from employee paychecks. The matching or nonelective contributions are due by the due date of the employer’s federal income tax return, including extensions.

All employees who have earned income of at least $5,000 in any prior 2 years and are reasonably expected to earn at least $5,000 in the current year must be eligible to participate in a SIMPLE IRA.

A SIMPLE can be a good choice for a small employer who would like to benefit from the tax deduction for employer contributions while encouraging his or her employees to save for retirement. Many employees will find this sort of plan attractive because it allows for higher contributions than a traditional IRA and requires employer contributions. It entails a greater administrative burden than a SEP, although this burden is still relatively small, and offers less flexibility. If cash flow is not an issue, a SIMPLE plan might be for you.

Once an employer makes a contribution to a SEP or SIMPLE plan, the employee is 100 percent vested in that contribution. Employees can take their contributions with them, even if they quit the next day. If employee retention is a concern, a plan that allows for deferred vesting, such as a Money Purchase Plan (MPP) or Profit Sharing Plan (PSP), may be a better fit. Vesting can either be graduated over a period of years of service or take effect all at once after a certain period of years. These plans are the middle-of-the-line models that provide more features than the most basic plans.

Similar to a SEP, a PSP allows for discretionary contributions by the employer. This is a beneficial feature if the business’ cash flow is a concern. The employer contributes what he or she can and the contributions are divided among employees based on a formula set by the plan. This is commonly based on an individual employee’s compensation relative to total compensation. Employer contributions are limited to the lesser of 100 percent of the employee’s compensation or $51,000 for 2013 ($52,000 for 2014). An employer can deduct amounts that do not exceed 25 percent of aggregate compensation for participants. A plan must be established by the last day of the business’ fiscal year. Contributions are due by the business’ tax filing deadline, including extensions.

A PSP is a good choice if cash flow is variable. It can motivate workers to increase profits and the likelihood of receiving a contribution. However, many employees might not find it as beneficial as a plan with guaranteed contributions. These employees may prefer a Money Purchase Plan (MPP).

A MPP is similar to a PSP, but it requires an annual contribution of a specific percentage of employee compensation, up to 25 percent. This creates a liability for the business, and thus may not be a good choice if cash flow is uncertain. An MPP must be established by the last day of the business’ fiscal year. Contributions must be made by the due date of the employer’s tax return, including extensions.

Standard eligibility requirements for both a PSP and an MPP are employees over age 21 and who have at least one to two years of service with the employer. If two years of service are required for participation, contributions vest immediately.

MPPs and PSPs also may allow loans to participants, a feature that employees often find attractive. Loans are usually limited to either (1) the greater of $10,000 or 50 percent of the vested balance or (2) $50,000, whichever is less. Loans must be repaid, with interest, over 5 years, unless they are used to purchase the employee’s principal residence.

The vesting and loan features make MPPs and PSPs more difficult to establish and maintain than SEP or SIMPLE plans. Both types of plan require employers to file Form 5500 with the IRS annually. These plans also both require testing to ensure that benefits do not discriminate in favor of highly compensated employees. Employers may also find the administration of plan loans to be burdensome. The added features of MPPs and PSPs make them more costly and complicated than the standard model SEP and SIMPLE plans.

You may choose an MPP or PSP if you would like a plan that encourages employee retention and you can handle the extra paperwork. Whether you choose an MPP or a PSP depends mainly on your cash flow.

The fully loaded model retirement plan is the traditional 401(k). These plans allow employee and employer contributions, vesting of employer contributions (employee contributions are always fully vested), and other options such as loans. These plans can be as basic or as complex as the employer wants. However, with complexity comes cost.

Annual employee contributions for a 401(k) are limited to $17,500 for 2013 and 2014. Participants age 50 and older can contribute an additional $5,500. Combined, the employer and employee contributions can be up to the lesser of either 100 percent of compensation or $51,000 for 2013 ($52,000 for 2014). Employers can deduct contributions up to 25 percent of aggregate compensation for participants and all salary reduction contributions. A 401(k) must be adopted by the end of the business’ fiscal year, and contributions are due by the business’s tax filing deadline, plus extensions.

An employer’s contribution to a traditional 401(k) plan can be flexible. Contributions can be a percentage of compensation, a match for employee contributions, both or neither. However, the plan must be tested annually to determine that it does not discriminate against rank-and-file employees in favor or owners and managers. A Safe Harbor 401(k) does not require discrimination testing but does require the employer to make either a specified matching contribution or a 3 percent contribution to all participants.

Commonly, 401(k) plans must be offered to all employees over age 21 who have worked at least 1,000 hours in the previous year.

A 401(k) is a good option for an employer who would like a plan with salary deferral, like a SIMPLE IRA, but also allows for vesting of employer contributions. An employer considering this sort of plan should be able to afford the contributions and the additional administrative work required. A 401(k) is a good option for larger businesses, where the maintenance of such a plan is less burdensome.

The plans I have described in this article are all defined contribution plans. This mean that the plan determines the contributions made, not the ultimate benefits received. Once the contribution is made, the employee invests it however he or she sees fit. At retirement, the amount the employee can withdraw is dictated by the performance of those investments. Poor investments lead to smaller retirement savings.

Defined benefit plans, in contrast, are the Rolls Royces of the retirement plan world. These plans include traditional pension plans, which pay out a set amount to an employee in retirement. The employer, not the employee, takes on the investment risk and will have to make up most shortfalls if the money originally set aside does not cover the ultimate expense.

While in theory an employee could do better with a defined contribution plan, depending on investment results, the certainty of a set payout in retirement makes defined benefit plans highly attractive to participants. However, such plans are costly and administratively complex. On top of annual filings, the plan needs to be tested by an actuary. The required future payments become a liability of the company. The burdens of these plans have made them unattractive for many businesses, and they have become much less common in recent years. In most cases, especially for small businesses with employees, it is not economical to adopt a defined benefit plan.

Adopting a qualified plan for your small business need not be a hassle, even if you want to adopt one for the 2013 tax year. However, be prepared for the administrative complexity, and cost, to grow in step with the plan’s features. In general, though, the benefits of tax-deferred savings and contribution deductions for employers make setting up and maintaining one of these vehicles worth the price tag.

Four Reasons Why Small Business Fail To Plan and Why They Need To Think Again

It is so widely acknowledged that a robust business plan is one of the key ingredients in small business success, it seems remarkable that anyone serious about their business could considerable it optional. For example, Business Link say, “It is essential to have a realistic, working business plan when you’re starting up a business”. A recent survey showed that small businesses were twice as likely to be successful with a written business plan as compared with those without one. The Times in their annual round up of 100 up and coming UK businesses suggest that “poor business planning” is a key reason for failure. Indeed, it’s almost impossible to find an authority that would advocate the opposite idea, a clear signal that this idea is accepted wisdom. Despite this, a recent survey shows that two thirds of small business owners run their businesses on gut instinct alone.

I had a very interesting discussion about this a couple of days ago with a good friend of mine who has run several successful small businesses in which he posited the idea of a “planning gene”. He felt that the only possible explanation for the lack of proper planning in small business was genetic.

According to his theory, the majority of people are born without the “planning gene” and this explains why so many people don’t have any written business plan, despite the overwhelming evidence of a high correlation between a robust and vigorously implemented business plan and business success. The majority of us are simply not biologically and genetically wired to plan.

This is certainly one explanation, although I have to say I have a few reservations as to the validity of his theory. I talk with small business owners about planning every day. I’m part of a small business myself. I’ve owned several small businesses over the last ten years each with varying degrees of success. In all those conversations and all that experience, this was the first (semi) serious discussion I’d had about the planning gene.

If I was to aggregate the results of the conversations I have had with actual and prospective customers on this topic, four distinctive strands emerge explaining why small business owners fail to plan. Whilst I have heard a few other explanations for the lack of effective small business planning, I am treating these as outliers and focusing on the most significant.

I’m Too Busy To Plan – More often than not, the small business owners we talk to tell us that proper planning is a luxury that only big business can afford. For them, business planning, if done at all, was a one-time event that produced a document for a bank manager or investor which is now gathering dust in the furthest recesses of some rarely opened filing cabinet. There just aren’t enough hours in the day and if forced to choose, they would do the real, physical work and leave the mental work undone, which seems to be the poor relation at best, if it is even dignified with the status of work at all.

Traditional Planning Doesn’t Work – The “I’m too busy to plan” excuse is often supplemented with this one. I’ve heard the stories of the most legendary construction overrun of all time, The Sydney Opera House, originally estimated to be completed in 1963 for $7 million, and finally completed in 1973 for $102 million, more times than I can remember. Sometimes, this idea is backed up with some actual research, such as the fascinating study by several eminent psychologists of what has been called the “planning fallacy”. It seems that some small business owners genuinely believe that mental work and planning is a bit of a con with no traction on physical reality.

My Business Is Doing Fine Without Detailed Planning – A minority of small business owners we speak to are in the privileged position of being able to say they’ve done pretty well without a plan. Why should they invest time and resources into something they don’t appear to have missed?

Planning Is Futile In A Chaotic World – Every once in a while, we hear how deluded we are to believe that the world can be shaped by our hopes and actions. This philosophical objection to planning is perhaps my favourite. It takes ammunition from a serious debate about the fundamental nature of the universe and uses it to defend what almost always is either uncertainty about how to plan effectively or simple pessimism. This is different from the idea that planning doesn’t work as these business owners have never even tried to form a coherent plan, but have just decided to do the best they can and hope that they get lucky as they are knocked hither and thither like a steel ball in the pinball machine of life.

As with all of the most dangerous excuses, there is a kernel of truth in each of these ideas and I sympathise with those who have allowed themselves to be seduced into either abandoning or failing to adopt the habit of business planning. Most small business owners feel the same dread in relation to business planning as they do to visits to the dentist, so it’s unsurprising that so many simply don’t bother. However, by turning their backs completely on planning, they are in danger of throwing the baby out with the bathwater. Taking each idea outlined above in turn, I’ll attempt to show why business planning is critical, not just despite that reason but precisely because of that reason.

I’m Too Busy Not To Plan – Time is the scarcest resource we have and it is natural that we would want to spend it doing those things that we believe will have the greatest impact. Of course, we want to spend most of our time producing, but we should also invest at least some time into developing our productive capacity. As Stephen Covey pointed out in his seminal work, “The Seven Habits of Highly Effective People”, we should never be too busy sawing to sharpen a blunted saw. Planning is one of the highest leverage activities we can engage in, as when done effectively it enhances the productive capacity of small businesses, enabling them to do more with less. Nothing could be a bigger waste of precious time than to find out too late that we have been using blunt tools in pursuit of our business goals.

If we as small business owners weren’t so busy and time wasn’t so scarce, then we wouldn’t have to make choices about what we did with our time and resources. We could simply pursue every opportunity which presented itself. However, for the busy entrepreneur, the decision to do one thing always has the opportunity cost of not being able to do something else. How can we be certain that our business is going where we want it to go without pausing regularly, scanning the horizon and making sure not only that we are on track but also making sure that we still want to get to where we are heading? I believe more time is wasted in the single-minded pursuit of opportunities that are not right than is wasted by over thinking the opportunity of a lifetime.

In short, small business owners are extremely busy and their time is precious. So much so that to waste it doing the wrong things with the wrong tools would be tragic. Small business owners that cannot afford the luxury of making expensive mistakes simply must regularly sharpen the saw through continuous business planning.

Traditional Planning Doesn’t Work, So We Need a New Approach That Does – There are some fairly large question marks over the effectiveness of traditional business planning techniques. In an age where business models are becoming obsolete in months rather than years, a business plan projecting five years into the future cannot be viewed as gospel. Nobody has a crystal ball and if they did, they probably wouldn’t be writing business plans but using their remarkable predictive powers to some more profitable end.

Dwight D Eisenhower said “plans are useless, but planning is essential”. Whilst producing a document called a business plan is far from useless, the real value lies in the process by which the plan is created in the first place. If this process can be kept alive in a business then the dangers associated with traditional planning can be minimised or avoided all together. In an environment of continuous business planning, small businesses can be flexible and adaptive to the inevitable changes and challenges they will face. Rather than quickly becoming obsolete, their plan will simply evolve with the changing circumstances.

Accepting that the plan is a living thing that will evolve necessitates a change of approach to business planning. An effective business plan is the response to the repeated asking of the questions what, why, how, who and how much. It is not a 20 – 30 page form to fill in for the benefit of a bank manager or some venture capitalist, who will probably never fully read it. A business plan should help you, not hinder you, in doing business. If traditional business planning doesn’t work for you, it’s time to embrace the new paradigm of continuous business planning.

My Business Could Do Even Better With Effective Planning – If you are one of the lucky few whose business has thrived despite an absence of traditional business planning, then I say a sincere well done. I hope that you can say the same thing in five years time.

Business life expectancy in Britain and across Europe and indeed the world are in rapid decline. A study done at the end of the eighties and then again as we marched into the new Millennium showed that life expectancy had more than halved for British businesses in those ten years, from an average of 9.7 years to 4.1 years. Just because a company once enjoyed market leadership does not mean that its future is assured. Many high street institutions have fallen victim to the recent recession. Five years ago it was inconceivable that UK retail institutions like Clinton Cards, Game, Borders, Barratts, T J Hughes, Habitat, Focus DIY, Oddbins, Ethel Austin, Principles, Allied Carpets, Woolworths, MFI and Zavvi/Virgin Megastore would all be either out of business or teetering on the brink of oblivion in 2012. Yet that is exactly what has transpired.

Any business from the smallest to the greatest is not impervious to the winds of change. A new competitor, a technological breakthrough, new laws or simply changes in fashion and consumer preference can all re-write the future of a company regardless of how bright that future once seemed. It is precisely because these risks exist that business planning is critical. To survive in business is extremely hard, but failing to effectively plan for the future or adapt to current realities surely makes it impossible and failure inevitable.

Of course, it is not necessarily the absence of plans that did for these companies but the quality of their plans and most especially the quality of their implementation. Even a poor plan vigorously executed is preferable to the finest planning and research left to rot in a drawer. Continuous business planning is effective business planning because it emphasizes implementation and regular reviews of real results as part of what should be a continual process of improving company performance rather than simply attempting to predict the future and wringing our hands when our prophecy fails to come true. We believe, like Peter Drucker, that the best way to predict the future is to create it.

Planning Is Essential In A Chaotic World – We sometimes feel small and insignificant as we try against all odds to translate our dreams into business reality. It’s easy to feel all at sea when we consider some of the challenges we face. However, whilst it is true that we cannot control the direction of the wind, we can adjust our sails and change the direction of the rudder. Difficult and challenging circumstances may come in our lives, but we can control the outcome of these circumstances by choosing which path to take.

The truth is that we are fundamentally achievement orientated as human beings. When this is taken away, we lose much of the energy and motivation that propels us forward. There have been numerous studies carried out on life expectancy rates after retirement, which show that when clearly defined goals and daily action moving in the direction of those goals are removed from our lives, the result is literally fatal. The individuals studied who failed to replace their career goals with a new focus for their retirement simply shriveled up and died. The implications for small business owners are clear. Those business owners with clear goals who take action daily that propels them in the direction of their goals are far more likely to thrive and survive than those who take any old goal that comes along or move from day to day with no defined objective other than survival.

It seems to me that precisely because life is so chaotic and challenging that effective planning is essential. Without continuous business planning, our businesses and the small business owners that work in them may find that bit by bit they are atrophying and on their way to becoming another business failure statistic.

There undoubtedly exists an antipathy for business planning felt by many small business owners. Clearly, this cannot be fully explained by the lack of a “planning gene”, but it equally cannot be fully justified by the reasons most commonly put forward by small business owners to not engage in the business planning process. These reasons must be critically re-evaluated and a commitment made to a continual and never ending process of improving the condition of their small businesses. Without such a commitment, the future for small businesses in the UK is uncertain.

Life Improvement: When Is It Time Not To Plan?

Many of us have all heard the age-old saying that failing to plan is planning to fail. And many of us know the value and power that is found in setting goals, especially written ones. Every business guru, diet guru, sports guru… any guru… take your pick from the plenty there are… all of them stress one thing: have goals, will succeed. So we know this works. At the same time, we all hear of the importance and immense power of letting go, detachment. So we also know that this works. But it all sounds contradictory at first, doesn’t it? Well, it isn’t. The question then is, when is it time to plan, and when is it time to let go (not plan)? Put in another way, when does planning help you, and when does it harm you? When do things “go bad” not in spite of your plans, but because of them? That is the question, the answer to which will allow you to drop off the stress and worry baggage, stop unwittingly messing yourself up with plans made at the wrong place and time, and generally empower and free you a great deal.

Well, to begin with, it is a good time to define a plan so that we know what we are talking about. A plan is a vision; a template which when followed guarantees a certain outcome. It is a collection of cause-and-effect clusters that all work together to produce one final desired outcome. The essence inspires a vision that defines the becoming of a form, through process, that will hold the expression and experience of the essence that inspired it. That is a plan. Obviously, a plan with missing or incorrect inputs will not lead to the correct outcome,because it is not based on truth, on the Universe as it were, on the Laws It Works By. So you can imagine that an incomplete plan will work, but it won’t – it can only hope to approximate. Incomplete plans don’t work fully, no matter how one deludes themselves prior to the frustration of seeing the plan dashed against the rocks. Moving on, a plan made at the level of your ego is a personal plan. You make it because you have certain hopes and fears and you wish to avoid what you fear and make what you hope for happen. Without fear, you would rarely plan personally. Most plans are defensive; defensive against some imagined attack. A feature of a personal plan is that they have a future imagined “good end” to aim for and a “bad end” to avoid. Therefore, a personal plan is based on judgment (against yourself and others) and abstract assumed scenarios as part of its inputs. Its driving force is partially based on fear, as all things from the ego level are.

Here is a key point: personal plans are made from a vantage point that has no vision of all factors involved in all dimensions of space and time, and that is why the ego assumes things in an attempt to fill in the places it has no idea about. At this level of consciousness, you can only see what is right Here Now, and for most humans that is a tiny slice of eternity. Of all the millions of cause-and-effect components required to cooperate all across the universe for your desire to be fulfilled, your egoic self is only aware of a tiny percentage of them. That is why its plans are never complete. But then there is a part of You that is nonphysical and aware of all, all, the components and how they would exactly fit into the space-time continuum to guarantee that your desire is fulfilled. That part of You is Everywhere, that is why It Knows.

Now, I would like you to stop for a moment and remember the last time you had a flash of insight, an ah-ha that made you smile with delight at how smart you are. We have all had those moments where, literally out of the blue, we get it! You could be taking a piss while daydreaming about the ocean, when this brilliant solution for your business appears in a flash in your mind, and you get so excited! It’s a funny thing how they happen. Have you ever wondered why they come to you as finished plans? Seriously, remember the last time you had one. You did not construct it, put it together, or formulate it. You know, you did not put it together, block by block, until it became the genius idea that it was. You just found it all done for you, there, flashing in your mind. And you ran out and told your friends what you just thought of, never once stopping to consider just how you thought of it. Really, who put it together? Think about that. You found it complete, perfect for your needs. Who put it together with such wakeful intelligence that is aware of all that is involved so much so as to produce such a suitable idea? What about musicians? Many chart-topping artists report that they simply find the music in them; they hear it then write it. They don’t put it together; they more like report it. The same goes for many inventors, many artists, and so on.

By the time you get one of those flashes of insights, by the time it enters your mind, it is already a copy. The original is out there somewhere, where it was put together by One who has full vision and was capable of bringing to you what you had not managed to package together yourself. But remember, there is only One Mind, separation is a mental illusion, just like time is a mental illusion (time is thought “stretched” out into “space” to demonstrate and experience it; you recognize sections of eternity “at a time” to experience process, space demonstrated). You “heard” the thought, the inspiration, because you were listening, at that point empty in relation to the matter. If you remain empty, you could continue, day by day, to listen to the rest of the plan, which includes how to execute the vision, what inputs to use, when to make what move, and so on. The place where the original plan came from is your own Higher Mind, that part of your individuation that is still in perfect recognition of its unity with All That Is, the part of you that sees all and knows all, the part of you that is not in the experience called human, the divine essence. Now here is the greatest news: no divine plans are incomplete. None! So none can possibly fail when executed as planned. The Planner Sees All, Directs All. The only thing that can interfere (which means it introduces inefficiency to your personal experience) with a divine plan is a personal plan. This is not because a personal plan is more powerful; it is because the right to free will is upheld with the highest respect. You have heard many times that you have many aspects of you, some of which you are conscious of and others of which you are not. When they are not aligned, you experience conflict and confusion. So now we know the difference between a personal and a divine plan. A divine plan is not some plan made by some foreign god to impose on you; it is Your Own answer to your questions, from a level that sees all (Spirit) to one whose experience is one slice of the whole at a time (human). But it is all you. That is why those flashes of genius that you get are so complete, yet they are specific to the very problem or desire you had.

Now let us go back to this goal-making business. Personal plans have a function, but only when used to free the individual. It is the only time they can help you. And this is why. Imagine a person who feels like a victim (in anything, any area of life). They have given up hope. They feel powerless, incapable of making anything happen. Now, if something happens that triggers their courage or anger enough to make them decide to do what it takes to make things work for them, they begin to become self-reliant. They drop the victim mentality. They make a plan; a way in which they feel will get them out of their desperation. Now, every time a human has a desire, the non-physical part of that human starts inspiring this human with ideas from a divine plan, ideas which are guaranteed to work. However, if you have so much personal thoughts and emotions distracting you, you cannot hear these inspirations. You must still yourself. Like a calm pond, one which will instantly be aware of any rock thrown in. If you are like the Niagara Falls inside, you will not notice the rocks being thrown in.

Anyway, back to our example. This person, far from calm, will only hear parts of the plan being given them. They will, out of fear and a belief that they can fail, that there is some danger somewhere, they make a personal plan. They use inputs from inspiration, whatever they can hear and are not afraid to follow, and they also make up scenarios, imaginings based on their fears, and use these in the planning process. At the end of it all, what they invariably find is that the plan works in certain portions. They are elated! Even if not everything worked as planned, at least something worked! And this way, they rise out of desperation and can now start to direct their life. The point here is that from the place they were, the helplessness they believed to be in, any plan was a good thing. Any plan! And goals are great, because they give a point of reference, something to aim for. As you can see, even the worst personal plan, one with 10% success, is still a great thing for one who though they had zero power. It is something to celebrate and honor.

But then there comes a point where self-confidence and self- reliance is believed in enough to no longer be doubted. At this point, making personal plans becomes a great hindrance. Once you have proof that your life can be deliberately lived instead of under the idea that you are a victim of forces beyond your control, it is time to start using complete plans. That means that the ego’s personal plans are no longer useful. They were a crutch to remind you how to walk, with their goals and all, but now that you can walk on your own, you need a new tool to show you how to run and fly. That is a complete plan, a divine plan made by the higher aspect of Who You Are. You are much larger than you imagine yourself to be. Let us examine how this works.

Under the rule of personal plans, a person would ‘hear’ the insight, the flash of genius, stop everything they are doing, and excitedly run to the office to start planning how to make this plan work! They assume it is ‘my idea’ and ‘I must make it work against threat of failure’. They make plans which rely largely on assumptions (an assumption is anything that is not What Is) because they cannot see the Whole Picture. So by mere fact, their personal plans will have elements in them that interfere with the smooth progress of the original insight, the divine plan. This is where you start to fail because of your plans, not in spite of them. To begin with, you do not know what the vision you saw in your mind is for, its complete use to the entire universe. The universe is not personal; it works as a Whole. But the Original Source of the idea does. You also do not know what the millions of cause-and-event components required are; you can only guess a few of them. And you do not know at what points in the space-time continuum they require to be inserted for everything to work perfectly; but the Maker of the Original Plan does. Now watch how a personal plan messes you up at this stage. Your plan is based on dates and deadlines that you pull out of the blue. It is full of standards that you have determined indicate whether you have succeeded or failed. Let us say you miss a deadline, and something happens that is opposite of what you had hoped and expected. What happens to your ego then? Does it not rush to judgment, calling you a failure, asserting the belief that things can go wrong and that you need even more control, and increasing the level of fear and anxiety? So next time when faced with a similar situation, you put even more focus on what you fear and then it happens again! Simply because you focused on it and thus created it. It becomes a viscous cycle. And you keep reaching for more control. And you experience more stress instead of less. And fear increases. You never once to consider that there is nothing wrong with you or the universe, nothing unsafe. You never stop to consider that it is your personal plan that was grossly mistaken due to relying on a fear-created ego.

Now let us see why the most successful people all preach the power of letting go. Let us look at how one would proceed in the above example, but by listening.

A person would hear the insight, and automatically know or remind himself or herself that all divine plans are complete, all the way to the end. They know that the vision is complete in the Mind of the One, and it cannot ever fail. So it is simple. In the same way, they listened to and heard the great idea that made them all excited, they would remember that their copy is just a copy. The original is still out there, along with everything needed to make it manifest. So they would listen and wait. They would know that at the right time and place, they would receive the next piece of the puzzle. They would rest, not stressing about making plans to ‘make sure’ it happens. And it makes sense. If they did not compose the first idea, why can’t they trust that Whatever composed it will also give forth, at the right time, everything else needed to make it work?

Imagine the universe is a big circle and you are a little circle within that big circle. Now a personal planner assumes that the big circle is at war with him or her, the little circle. In their fear over this imagined state of things, they make up a phantom world in their mind, with assumptions about the future and how the rest of the universe will act and react, and they plan against this. It is so draining. One who does not make personal plans but listens to their higher aspect, on the other hand, sees the big circle as part of them, part of the whole, with only an intention to love them and make sure all is OK, because all is One. They have chosen to believe in peace and love rather than separation and scarcity. This is a choice, and it is the choice that allows them to let go. They realize that they are best served focusing on the little circle, their Here Now, which is what they have full knowing of. And they awaken within that circle that is them, here, now. They chose to put all their attention here, now, and because they do this, they are aware of their emotions and thoughts. Presence gives them the ability to control their here, now. So they choose, here now, always, to make their here now happy and well. Here, Now, they follow whatever cues come up, always deliberately choosing their thoughts and emotions, here now, and not throwing their mind into some imagined past or future. In other words, they make every here now moment golden, and because all life is a successive moments of infinite Here Now, their lives automatically work perfectly! You have seen them or heard of them. That is how they do it. Clarity, simplicity, power, peace, calm… all rewards of being present and following complete plans, letting go of personal plans once you recognize that their use as a crutch is complete. They become purely efficient, effortless.

Such people walk this earth without the baggage of plans and worries, and things work better for them! They recognize that the universe is not personal, yet it is only, only, loving and all else is our self-created illusions. Just because we do not understand something does not make that thing wrong. There are more things relating to your life than you are consciously aware of at this level of your existence. Remember that your life always creates the next moment of your experience out of your intentions. Whatever you give attention to grows. You are therefore held hostage by your own personal plans. So what is the point of your mind at this level, in relation to planning? Well, it is to execute that plans it receives, knowing with certainty that they cannot fail. It is to fashion all of your existence here into an appropriate vessel to execute these plans. The plans are already perfect. All they need is a suitable vessel to manifest through. You have to become a certain person for certain things to flow through you. It is this that you can use your lower mind for, by following cues from the higher mind. The attainment of success is not something that one comes by through chasing after success – it is something one attracts by the person they become. You form a vibration match with what you desire. It is an inner journey of transformation. You can call it education, training, skills, self-help, discipline… it is all an inner transformational journey resulting in a frequency match. It is guaranteed. That is all you have to do. The rest is done for you (admit it; you don’t know how it is done, how all those things are coordinated universally to make this amazing miracle called life work with predictability!)

You now have a progression of the use of various types of plans. In the beginning, personal plans can be used to establish self-reliance in a being that has lost hope. However, there comes a time when that crutch, the personal plan, because the very problem itself, the cause of failure instead of being the cause of success. That’s when its time to let go of the crutch. It is time to dare give trust a chance, to dare believe that the universe is loving (not dangerous, as you have been indoctrinated to assume) and see what happens! Give it a go! Find out for yourself. Let go, truly, a few times and listen to the plans as they come and see what happens! Gather your own evidence instead of holding on to personal plans because you are afraid something could “go wrong”. You don’t have to carry that huge unnecessary load. Drop it. It is very liberating! Try it a few times and see how you like it.