<p> New Road Map Foundation External Audit Review April 2007 Key Learnings:</p><p> How people are learning about the program o Primarily through word of mouth: given the book as a gift, spouses/significant others passing the book on to them, read a review of it in newspaper, TV, or online and checked it out o Most people were attracted to it because they were either: . In a bad place with money or had incredible debt at the time they heard about it, or . They were interested in learning more about how to become financially independent sooner  Why people decided to read the book or do the program o Most were interested in learning more about how to achieve financial independence sooner so that they could get away from the 9 to 5 routine and find work or live life in alignment with values . Financial independence meant something different to everyone – for some it meant not working, for most it meant the freedom to do what is meaningful to you o Another big motivator for the program was if they were at a point of transition in their lives or had major debt that was suffocating them. They were in a place where they needed guidance and some semblance of financial literacy to help see their way out of their financial predicaments.  How people described the program to others o It seems most people had internalized the main messages of the book: . Living with integrity and living in alignment with your values . Understanding your relationship with money and clarifying your values . Most people had described the program as a system for bringing awareness to your money and your values and living in alignment with those (most of these were either adaptors or loyalists) . These people focused on financial integrity rather than financial independence o Others described it as a good, practical program that clearly outlined accessible steps to realistically achieve your goals (most of these were loyalists or adaptors as well) . These people tended to focus on financial independence o Most exposed people talked more about how it helped you focus on real income and spending and finding clarity around this as a way to control spending and make better financial choices  Primary benefit of program o Clarity around values, money and choices were most often mentioned (54% - mostly adaptors and loyalists) o Life freedom, empowerment, liberation to do what they want, ability to pursue work/things that are meaningful to them were mentioned second most (38% - adaptors and loyalists) o A sense of comfort, a framework for support, peace of mind around money and a sense of security were mentioned most by the Exposed group (23%)  How life has changed since the program o All groups said that they were able to pay off debt, become better off financially, and become more comfortable o Able to find more fulfillment in life, do things they want and make a real difference, find their calling and look at money as a source of joy and meaning (mostly adaptors and loyalists) o Also mentioned were the ideas that they now have freedom, choice and options open to them (mostly adaptors and loyalists) o There were also the practical changes such as a greater awareness of spending, a financial plan for the future, the ability to make healthy choices because they know what is enough (mentioned by all groups)  Program tools used and value they bring (Note: very few weaknesses were mentioned, only strengths/value) o Book most often mentioned (92%) . Strengths/Value: It’s a great reference tool, it’s clear and practical, it provides context, it outlines the concepts clearly and has a little bit for everyone to relate to o Audio course mentioned second most (54%) . Strengths/Value: Joe’s voice and passion are motivating, Joe’s humor and candor are inspiring and fun, you can listen to them pretty quickly, takes less time o Study guides mentioned third most (31%) . Strengths/Value: Inspiring, help you to learn the ideas o Seminars/Workshops (23%) . Strengths/Value: give people an opportunity to go deeper, are a great revenue generator o Study groups/Discussion groups (23%) . Strengths/Value: help you maintain your resolve, support you in the process o Others mentioned were SLN discussion boards, modeling/mentoring, developed their own tools (software and spreadsheets to help them)  Other types of support that might be helpful o Face-to-face support via community groups, support teams (especially early in the process) o More social support via tips and ways to make it easier not to spend – ways to entertain and have fun while saving money o Having access to people who have done all the steps and ask them questions, get inspiration (mentors) o Others that were mentioned and are great ideas: . online blog or diary to record thoughts/emotions as you go through program . national conference every 1-3 years to bring supporters together . financial advisors that can help create financial plans using the steps . good software for tracking/recording and calculating . more structured package of exercises, software and online/local offline resources that direct you to support options out there (including external or partner resources)  How define success, what actively doing to get there o People define success in a variety of ways. o Loyalists and a couple of adaptors tended to define success close to the traditional measures of the program (completing steps and reaching FI1, FI2, or FI3). . Financial independence. (15%)  When I knew that I had the capacity to live in the lifestyle I wanted and not have to work anymore; Not working for money (ever again). Will generally endure a lot of personal discomfort to achieve this goal. . Doing the steps. (23%)  Feel successful just being involved in the process and making small wins along the way, especially with debt reduction. Success more along the lines of FI1 or FI2. o Other success factors are: . Change in how they think about financial issues and money (23%)  Reduced fear and anxiety around money; personal finance: didn’t care about $, now interested in honoring commitments and want to be prepared for unknown; limiting spending. Lives below the income level, but still has a great satisfaction with life. . Making choices in alignment with values. (15% exposed)  Having a job that didn't interfere with my personal values- able to stop thinking about the standard path and think more about what was right and change and adapt to that; the program is not about minimizing but understanding the life you want to live and building for that. Successful when you can reprioritize where you spend money or energies. . Freedom to make choices. (15% adaptor/loyalist, adaptor)  Able to make decisions about life without having to worry about money. It isn't necessarily financial independence, because might not be possible . Debt management - interested in any deliberate reduction in debt and setting some goals around savings. (exposed) . Get beyond meeting own needs to help others - helping to "a meaningful life". Gone beyond meeting own needs, addressing issues that affect larger world (adaptor)  Most appealing about the overall program o The step-by-step approach was the most appealing aspect of the program across all three types of exposure levels. (46%) . Includes good hands on things you can do everyday; Everyone could do it and it would change their life; it is step- by-step and the steps aren't that difficult to DO, (they may be difficult to FACE!); learning what you have, seeing the same- old in a new way -- that is how you make change in your life; method gives you “flow” out of the process. o The exposed and adaptor audience most related to the program’s focus on aligning finances with values. (23%) . The way it's integrated and built around idealistic concept around what has meaning in your life; getting in touch with what you care about o The other aspects mentioned where all very personal ways that individuals connected or found value in the program: . Empowering people/orgs who want to have good impact on the world. . The real examples of people finding success with the program were inspiring. . Knowing that I'm not the only person in the universe trying to be more frugal and enjoying life. . The biggest deal for me was the amazing connection that I was able to make with Joe and Vicki. . The opportunity to model what I learned and what it contributed to our family's ability to live a most meaningful life.  Least appealing and how would change o Almost everyone interviewed mentioned the program’s steps and how they are presented in the various vehicles, although very appealing for some, limited some people’s ability to connect with or continue with the program. . Some of the steps are difficult to do and turn people away (especially tracking expenses in step 1 and listing income over entire life). Too many details, lose focus on overall meaning. Need more social support to get through it. (69%) . Calling them "steps" makes people think they are linear. He refers to them as spokes in the wheel. If you take out a spoke it is weaker, but you don't need to do in order. (15%) . Can adapt the program to fit your needs; Program is too dogmatic, saying have to do all 9-steps or will fail. (15%) o Step #9/Financial Independence was daunting and unrealistic for many. (46%) . Investing recommendations: Didn’t get much out of them; The savings bonds weren't that applicable and used other options that are available now; Financial independence not realistic. o Some things about the language in the book/audio program and the general nature of the culture turned some away. . Overtone of righteousness in the book, didn't appreciate the feeling; Book sometimes includes the authors’ personal values which is distracting and loses people (15%) o In one case, the self-knowledge revealed by the program, was overwhelming. They learned things about themselves and their spending that was hard to accept.</p><p> Which of the program’s 9-steps have made the biggest impact o Only 2 people actually named the actual step by number, but there were fairly high marks for elements of Steps 1, 2 & 4 . Understanding where your money was going so you could better align with values (Step 2) received the highest rating (62%) . Different parts of Step 1 were mentioned: money earned in lifetime; Maximizing fulfillment, the chart with the money brings you joy to a specific degree and then doesn't; idea of enough (Step 1) (31%) . Concept of Real Hourly Wage. (Step 4) (23%)</p><p> Other books/programs used in personal finance arena o There was a broad range of other tools mentioned (see list at end of the report). Most people did not have much interest or loyalty to these other books/programs to the same degree as they had for YMOYL or NRM’s 9-step program.  Terms/words used to describe the concepts that the 9-steps teach o Aligning personal finance with values; value clarification; mindfulness around money. (31%) o Financial integrity; integrity (23%) o Financial freedom; freedom (23%) o Others: . Frugality, enough, finitude, . Learning to value your own time as a precious commodity . Decision making . Life changing, transformational . Basic financial education, demystifying the process. . Responsibility . Self-awareness</p><p> First thoughts on the following terms: o Volunteer Simplicity. Term prompted very different responses (about 50/50 negative or positive). . Thoreau . Christianity . Voluntary complexity . Scarcity . Beautiful idea, clean . Duane Elgin - makes you holier than others (negative) . Important, but misunderstood . Sounds jargony . Cheap . Voluntary poverty . Sufficiency . Living below your means</p><p> o Financial Intelligence. Fairly positive connotations with this term. . Control, knowledge & empowerment. Having a clear sense of the place of money in one's life & having money work for you vs. work for it; understanding how your money comes in and out of life; simple places to put your money; how credit cards work; smarter about things (31%) . Marketing; Suzie Ormon (negative). Feels very mainstream (15%) . Others (mentioned once)  Tough word assoc., I have an MBA, but don't feel like I have FI1 (inadequacy!)  Smart  Gratitude  Heartfelt  Living below your means  Comfort  Financial Advisor, shrewd investing o Financial integrity. Most positive term overall. Very tied into the program’s focus on aligning money with values. . Alignment with values; understanding relationship with life energy; Being able to walk in the space of dignity around your relationship with $. Standing up tall and feeling full. (31%) . Others (mentioned once):  Stress-free  Bankers, honest, reliable  Heartfelt  Being on time, paying bills  Necessary  Empowerment  Ethics  Knowing where your money is ultimately headed o Financial Independence. Mixed feelings and some confusion about this term. . Freedom/ Liberation (38%) . Just being in charge of your financial destiny (very misconstrued and highly charged words); not owing your time or money to anyone else (15%) . Others (mentioned once):  Frugality  Ambiguous  Images come to me about back to the land movement.  Hypocritical  Not having to work  Not having bills. A goal. o Frugality. This term is widely interpreted among the interviewees. People see the value, but often think of the term as restrictive. . Bulletproof . Independence, free . Wisdom . Not what I want . Constriction. Budget restrictions. Mousey old women with cats. Pinch the penny. . Not wasting your money, how to cut back, only sustainable if not about deprivation. . Survival skill in our world . Especially in high-consumer cultures. The life ring thrown to our species for survival. . Something my mother taught, but I don't understand (negative) . Fun . Getting the most out of something . Unnecessary . Making things yourself o Enough. Overall this term is considered very positive and people think it is very important. . Basta! Satisfaction; Being happy with what you have; “feels full”, Happiness (31%) . Others (mentioned once):  A moving target that can't understand, but should continue to try to understand it  Relaxation  Self-knowledge  Sufficiency  Knowing this is imperative in doing this work. Pivotal questions that one needs to ask and answer. Will always be on the treadmill of more. Huge for me as part of the program  Something I wish more people would recognize they had  Wonderful  Empowerment o Sustainable living. This term is defined closely with environmental and responsibility issues. A topic that is considered very important by everyone interviewed. . Small carbon footprint, everyone can live that way; don’t destroy the planet; environmental sustainability; important for survival, not consuming more than what is good for you/community; living in harmony with natural systems (38%) . Others (mentioned once):  Harmony  Misused  Responsible  Confusion. Negates ideas of progress and growth.  Dream  Constantly reevaluating what your goals are and what you actually need to get there and what your impact is on other people on your way to those goals. Some things to think about as we move forward:</p><p> Book is central o Do we create a new version? o How do we support the book with more inclusive language, and flexible options for approaching the steps, more support before/during/after the event . New Intro . Less dogmatic language throughout . Redo Step #9 (more options, strategies) . Provide updated tools and more support systems to help people more successfully get through the more challenging steps  Program support o Support vehicles, during and after . Software for charting – making this step easier and friendlier . Mentors – people who have experience success and can share it with those going through the program . Success Stories . NRM blog or on-line dialoging . Tips (how to save money: low-cost things to do, etc.) . Regional or national conference . Face-to-face discussion groups . Connect with like-minded, certified “NRM” financial advisors (start with current loyalists) . Link with other partner and/or support-driven organization around core causes  Program success o People define success very differently. Should we evolve products/tools to address success beyond traditional program measures (FI)? o By looking at how the program conceptually helps people align their finances with their values, it is clear that the program helps people who don’t even embark on many of the steps or adapt the program to better fit their needs o How can we present/reformat the program or provide the tools so it can work for everybody? (if that is a goal) o Might there be a less linear approach to the steps or a way to package them that feels less linear?  Post-program support o Do we want to support program’s users interests to live a more value- driven life beyond financial alignment? . Type “A” people do the steps, might need some more follow-up ideas and/or tools to try to find fulfillment in other parts of their lives. Examples:  Involvement in charitable giving/volunteerism  Career coaching  Environmental or sustainable living practices</p><p> Target Audience Segmentation (some preliminary options):  By Life Transitions o First Jobs/Career changes o Marriage o Divorce o Heavy debt/bankruptcy o Retirement</p><p> Financial Life Segmentation o Just starting out – graduating high-school or college o Accumulating/Building o Investing/Growing o Maintaining/Disbursing</p><p> Life Goals (some preliminary examples of this) o Elimination of debt o Not have to work o Volunteer for a living o Finding your true calling o Living simply</p><p> History with Money/Finances: How brought up? o Intense money worries/concerns o Frugal family due to life choices or values o Money/finances not as central issue</p><p> Tools (initial brainstorming list) o A stripped down book, steps w/corresponding “success scenarios” o National or regional meetings that program users run/attend o Places for people to come together and offer support (on-line and in person) o Parent tool to talk to their kids about money and values (maybe in context of “affluenza”) o Packaged software that supports tracking and recording efforts o Daily inspiration journals for people to record their experiences while going through the program to share with others o Social tips page (on website) to list ways to reduce spending while still enjoying life (similar to reducing your carbon footprint – easy but doable) o Full-scale mentor matching program – bringing those that found success together with those looking for success</p><p> Marketing o Highlight real people’s “successes” with the program at various levels, not just reaching “FI”. Makes it seem more doable and achievable to see what others have accomplished. o Viral marketing essential, what tools can we offer o Partnerships with other non-profit or public agency financial support or environmental consciousness programs o Build marketing plan around audience segmentation – packaging tools and messaging relevant to each group </p><p>Direct program recommendations from interviewees:  Need to spark interest: Need ways to expose people to the concepts of the program (presentations, podcasts, etc.) to get people interested and then they can turn to the book or workbook afterwards.</p><p> Sustainable Living: People who are interested in this as a concept, but think sustainable living is a luxury, it's for people who have the luxury of choices. Help share how this is in reach for everyone.</p><p> There is a need for a Step 10. Then what?! -- especially because people who are attracted to program are goal-driven, process-oriented. What is the next goal?? "Advanced course -- maybe a need for structural support."</p><p> Helping to build more social support. Would have broader impact if could have more formal avenues for practice groups. Easily accessible means for people to get support through difficult times. Get questions answered.</p><p> Need to make sure every step is doable. Make sure each step has a definite procedure for accomplishing the step – 85% of participants should be able to accomplish the step, so does not impede success in program. </p><p> Step #9: Might be worth having a couple different strategies for investing based on short term and long-term goals, also consider people in different stages of life/ages re: investment recommendations Ways interviewees talked about the success of the program:  You can get “flow” out of this process- focuses attention, has specific goals, immediate feedback, etc.</p><p> Live it vs. teach it. Did not force the program on wife and kids, but modeled it. To realize early on, cannot directly recruit family members. Over the first 1-2 years just modeled to show her and my wife caught it by living with me and watching me embrace and live. Then we found ways to do that as a family.</p><p> The program allowed us to become our own experts. We look affluent, but have been in same house for 32 years. Buy a $50K car, but drive for 10 years. Little tricks that you play. A really important part of the program is for us to give ourselves permission to do the things we want to do.</p><p> When reading the book, she thought about having enough to be able to give. How do you live simply, but still live for making an impact with money. (Note: the ability to shift your finances in order to give back to society via various philanthropic efforts seemed to pop up a lot) </p><p>Detailed Answers for: </p><p>List of “other books/programs used in personal finance”</p><p>2 Mentions Suze Orman Lynn Twist, The Soul of Money Wall Street Journal Resources:  Michelle Singletary's column or Q&A  WSJ Guide to Personal Finance</p><p>Individual Mentions Tightwad Gazette Ernest Callenbach Charles Long, How to Survive without a Salary Institute of Noetic Sciences. Robert Kiyosaki, Rich Dad, Poor Dad Robert Scheinfeld, Busting Loose from the Money Game Victoria Castle, Beyond the Trance of Scarcity. Peter Lynch – Investment expert, series of books Jimmy Rodgers – Investment expert, series of books Inspirational books (people living full lives that don’t have to do with spending money. Ex. Zen and the Art of Motorcycle Maintenance</p>