Seven Financial Habits of Healthy People.

1. Seven Financial Habits
of Happy and Healthy People
Patrick A. Haake
2600 Grand Ave. Suite 600
Kansas City, MO 64108
816-412-1547

2. Healthy Behavior = Living Better
If you’re like most people,
you want to make healthier
choices for yourself and
your family
• Eating nutritious foods
• Exercising regularly
• Seeking guidance from
health professionals

3. Healthy Behavior = Living Better
Have you considered how
money is affecting your
health and wellbeing?

4. Could You Be Happier? Healthier?
According to a new study,
many of us could be happier,
more confident, more
optimistic and less worried,
regretful and disappointed…
Northwestern Mutual / LLuminari 2008 Study

5. Could You Be Happier? Healthier?
IF…
we focus on our financial wellness
Landmark Study discovery:
People who take control of their
finances are healthier and happier.
Northwestern Mutual / LLuminari 2008 Study

6. The American Pressure Cooker
• For the majority of Americans, money is a leading
cause of stress and we’re losing precious sleep over
it – an average of 21 hours of sleep each month
• Last year, people reported more stress over work
and money
• One-third of people report experiencing extreme
levels of stress
“Stress in America” study, American Psychological Association, Sept. 2007.

7. The Perfect Storm: An Unhealthy Cycle
• More than 60% of affluent adults say they aren’t
saving enough for the future.1
• We’re spending more and increasing debt levels to
“afford” our lifestyle.
• Stress can influence negative coping behaviors –
eating unhealthy, smoking or drinking too much.2
“Inside the Middle Class: Bad Times Hit the Good Life,” Pew Research Center, Feb. 2008
1
“Stress in America,” American Psychological Association, Sept. 2007.
2

8. • 2008 study commissioned by Northwestern Mutual in
partnership with LLuminari- physicians network
• Northwestern Mutual partnered with LLuminari, a
privately held health education and media company
• Exclusive agreement with Northwestern Mutual to
develop a landmark study focusing on how financial
“health” impacts physical health
• Researched among 2,400 Americans nationally
 Health behavior and well being
 Financial behavior and well being

9. Questions
• Is Financial Security a Priority?
• How prepared do you feel?
• Are you taking active steps to achieve financial goals?
• Do you work with an Advisor?
• How would you rate yourself on Health?
 Happiness?
 Stress Levels?

10. Habits of the
Healthy, Wealthy & Wise

11. Taking active steps to feeling
financially secure…
People who are taking active steps toward achieving
their financial goals say they’re:
• In excellent to very good health
• Happy, optimistic and confident
• Not – worried, depressed or regretful
• They also report lower stress levels and
fewer stress-related health symptoms.
Northwestern Mutual / LLuminari 2008 Study

12. 7 Financial Habits of Healthy People
1. Have a financial plan
2. Have short-term and long-term financial goals
3. Are taking active steps to achieve their goals
4. Have taken steps to protect family from financial misfortune
5. Pay off credit cards each month; good credit
6. Spend within their budgets
7. Work with a financial professional
Northwestern Mutual / LLuminari 2008 Study

13. Taking Action:
Putting 7 Financial Habits to Work
“Planning ahead financially helps ensure a healthy
future – body, mind and spirit.”
Elizabeth Browning
LLuminari CEO and Co-founder

14. Step 1
Have a financial plan
• Doesn’t need to be a 50-page document
• Know your expenses, your income and
plan what to do with the difference
• Calculate your net worth to determine
where you stand

15. Step 2
Set short- and long-term financial goals
• Goals for the next 3 months to year
 Paying off debt
 Saving for a vacation
• Five to 10-year goals
 Buying a larger house
 Saving for child’s college education
• Where you’d like to be in 20+ years
 Retirement funding

16. Step 3
Take active steps to achieve goals
• Analyze your financial behavior – Why aren’t
you taking action? What triggers spending?
• Track spending; find ways to cut back
• Increase 401(k) contribution level
• Automate savings with payroll deductions
• Research college funding options

17. Step 4
Take steps to protect family from
financial misfortune
• Establish an emergency fund
• Protect assets and income – life and
disability income insurance
• Consider long-term care insurance

18. Step 5
Pay off credit cards each month; have
good credit standing
• Don’t use credit to live beyond your means
• If you tend to over spend, pay with cash only
• Avoid late payments and penalties

19. Step 6
Spend within your budget
• Save first; spend what’s left rather
than the other way around
• Plan ahead for larger expenses
• Focus on “needs” and hold off on
“wants” until you have the cash
• Avoid impulse purchases

20. Step 7
Work with a financial professional
• People who work with a financial professional
are more satisfied with their financial progress
and have higher assets
• Good financial professional should focus on
your unique needs and goals
• Should be someone you trust to help you talk
about uncomfortable issues

21. Taking Control of your
finances is key to living
and feeling your best
It’s not about how much you have,
it’s what you do with what you have.

22. Q&A
&
QA

23. Quiz

24. The Northwestern Mutual Financial Network is the
marketing name for the sales and distribution arm of
The Northwestern Mutual Life Insurance Company,
Milwaukee, WI (NM) and its subsidiaries and affiliates.
Financial Representative is an insurance agent of NM.
Products and services are offered and sold only by
appropriately licensed entities and Financial
Representatives.

25. Gender Differences
Healthy men and women share the
same financial habits, but women:
• Attach significantly more importance to
feeling financially secure
• Fewer women feel financially secure
• Are feeling less financially prepared
Northwestern Mutual / LLuminari 2008 Study

26. Financial Matters Important to Women
Women place a higher value on having
enough money to:
• Retain a comfortable lifestyle in retirement
• Pay off debt
• Maintain comfortable lifestyle even if disabled
and unable to work
• Maintain comfortable lifestyle while employed
• Not lose most/all of savings to pay for LTC
Northwestern Mutual / LLuminari 2008 Study

27. Happy but Tired and Stressed
Women say they’re healthier and
happier than men. But, women:
• Experience more stress than men
• Report more physical symptoms of stress
 Fatigue, low energy, sleep problems,
anxiety, muscle tension, difficulty
concentrating
• Think they manage their stress poorly
Northwestern Mutual / LLuminari 2008 Study

28. Cultural Differences
Hispanic Americans share the same financial
habits as the population in general, but Hispanics:
• Attach significantly more importance to financial
security (77% vs. 67%)
• Are more likely to say their situation is causing
them worry or stress
Northwestern Mutual / LLuminari 2008 Study

29. Cultural Differences
Hispanics are more likely to say:
• Money is a source of stress in their relationships.
• They worry that their financial situation is hurting
their health.
Northwestern Mutual / LLuminari 2008 Study

30. Financial Matters Important to Hispanics
Hispanics place a higher value on having
enough money to:
• Pay off debt
• Be secure in case of a disability
• Maintain a comfortable lifestyle while employed
• Provide for family in case of death
• Afford to send children to college of choice
Northwestern Mutual / LLuminari 2008 Study

31. Financial Preparedness
Hispanics more often report working with a
financial advisor…which may be the best
step toward achieving financial security.
Northwestern Mutual / LLuminari 2008 Study

32. Disclosures
The Northwestern Mutual Financial NetworkTM is a marketing name for the sales and distribution
arm of The Northwestern Mutual Life Insurance Company, its affiliates and subsidiaries. The products
and services referenced are offered and sold only by appropriately appointed and licensed entities and
Financial Representatives. Each Financial Representative is a licensed insurance agent and represents
one or more, but not necessarily all, of the entities shown.
The Northwestern Mutual Life Insurance Company (Northwestern Mutual), Milwaukee, WI (life insurance,
disability insurance and annuities) is neither a registered investment advisor nor a registered broker-
dealer.
Strategic Employee Benefit ServicesTM is a nationwide group marketing program providing specialized
services in the employee benefit arena exclusively through the Northwestern Mutual Financial NetworkTM .
Securities are offered through Northwestern Mutual Investment Services, LLC, member NASD and SIPC.
1-866-664-7737.
Russell Investment Group is a registered trade name of Frank Russell Company, a Washington USA
corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of
Northwestern Mutual.
Northwestern Mutual Wealth Management Company, Milwaukee, WI, a wholly-owned company of The
Northwestern Mutual Life Insurance Company, is a limited purpose federal savings bank and registered
investment adviser.
Long-term care insurance is offered through Northwestern Long Term Care Insurance Company, a
subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, WI. This policy is intended to
be a tax-qualified long-term care contract. This material is produced for the marketing and solicitation of
insurance.
The Todd Organization is the marketing name for Todd Consulting, Inc., which is affiliated with
Northwestern Mutual, and provides and administers executive benefit plans.
Mutual funds are offered and sold by prospectus only. You should carefully consider the investment
objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern
Mutual Investment Services Registered Representative can provide you with a contract and fund
prospectus that will contain the information noted above, and other important information that you should
read carefully before you invest or send money.