Brief. Shows Business Fees. BDI initially uses Chimorel’s business development services without enrolling in a 2100 Plan. As BDI grows and realizes the savings available, it initiates a Business membership and 2100 Plan
Brief. Shows Nonprofit Action Steps. Mye Church uses Chimorel’s nonprofit development services. Initiated $60,000 fund raising program. Developed 500 new members. Broadened evangelism program. Exposed 5000+ people to Chimorel programs.
Brief. Solves a Personal Problem. Action stays out of jail after assaulting a teacher, then the Delinq family goes on to achieve some financial goals. Action step process and payment alternatives described without significant detail.
Extensive. Shows Action Steps. The Typicals obtain a 735 Plan Family Membership. They initially focus on a Step By Step Financial Plan, then begin active recycling and a college bound program. Limited detail regarding payment alternatives. Extensive detail regarding action steps
Extensive. Shows Individual Fees. Youra takes advantage of many Chimorel programs, dealing with an alcoholic husband, a daughter on drugs and creates a new job. This story details a variety of payment alternatives.
Action Plans Implemented For Business Development Inc
• Health Plan & Pension Plan
• Financial Planning For Employees
• Job Development System
• Personnel Policies & Competitive Pay Plan
• Recycling, Reuse, Source Reduction
• Cost Containment
• Growth Financing
• New Commercial Building
This is a hypothetical example.
Any similarity to a real situation is coincidental.
When we first contact Business Development Inc they have ten employees. They start a health plan, which generates $150/mo in commissions for an affiliate of The Chimorel Group. Initially, BDI is not excited about making a commitment of $2100 in cash plus 210 hours of service. They do accept our alternative offer to help with a marketing plan and with developing their personnel policies. They also donate a few computers and office equipment they would have paid to throw away.
Within two years their business triples. Our relationship with them also grows. Within several years they are generating $10,000/yr in fees and commissions for Chimorel and its affiliates. At this point they recognize the savings available through Chimorel’s 2100 Plan Lifetime Business Membership. They implement pension plans, key employee insurance, and planning for all their employees through their Business Membership. We help them finance their growth with planning for loans and a public offering. We develop a computerized job development system, a flexible benefit plan and a competitive compensation plan which encourages productivity and minimizes turnover. BDI uses the fees and some commissions to provide for a variety of planning services for its employees and its ongoing expansion. Using Chimorel strategies, they plan and build a new commercial building saving approximately 30% over the cost of a commercial builder.
BDI hires many of our clients as it expands. They begin a recycling plan and use recyclables in making their products. They implement source reduction techniques in their manufacturing process. This source reduction cuts costs directly by reusing wasted materials and indirectly by avoiding expensive litigation and cleanup costs. They initiate an Asset Management plan that saves money on purchases, tracks all of their assets, stores their software safely and pays them a part of the re-marketed value for assets they dispose of. Working with businesses like BDI enables Chimorel to support many people while we enable BDI to achieve its objectives.
Programs Supported At Mye Church
• Missions and Youth group received $60,000/yr.
• 500 new members increase building fund commitments by 25%.
• Evangelism exposure to 4000 people.
• Financial improvements in the lives of the church members.
This is a hypothetical example.
Any similarity to a real situation is coincidental.
A client asked us if we had any programs that could support the missions program, youth groups, evangelism and building fund efforts at her church. The answer was a resounding YES! Actually we anticipate that about one fourth of our efforts will eventually be to support nonprofit groups to grow and involve their constituents.
Mye Church had recently completed a new building program. It was reaching out to the community with a multitude of programs and was open to developing creative ways to support these programs. It had about 2000 active members, a lively Sunday school program, a strong youth group and a responsive evangelism effort. It supported many mission programs and encouraged its members to get involved.
With 2000 active members Mye Church initiated a program to raise $60,000/yr for its missions and youth programs. We asked for and received a $5000 commitment to enable Chimorel to provide computers for classrooms and missionaries around the world. We then began to develop a series of Pot Lucks and Introductory Meetings. Ten Pot Lucks per year were held. Each Pot Luck averaged 200 families at $21/family. At $3150 after expenses per Pot Luck the church raised $31,500. Twelve Introductory Meetings per year were held averaging 500 people. $100 sponsorships from twenty firms brought in $2000 each meeting which was split 50/50, giving Mye Church $12,000. Revenue from Chimorel Memberships and Programs added another $18,000. Food, books and video sales brought another $5000. 500 new members joined Mye Church raising commitments to the building fund by about 25%. And evangelism efforts were enhanced by bringing more than 4000 new people in contact with Mye Church (50% of the 8000 total attendees).
Something else also happened. Between 5000 and 6000 people (assuming some people came more than once) were exposed to Chimorel’s 0-4-0 philosophy and programs. Many became Active Recyclers. Others set goals, developed action plans and took steps to improve their financial lives. In time many church members had more money and could afford to give more to Mye Church and other charitable efforts. And through Chimorel’s programs they had many incentives to do a lot of things to support others.
Chimorel Helped Action & His Family Plan For
• Court Appearance – Teacher Assault
• Reimbursement of Teacher’s Medical Costs
• Involvement Church & School
• Attorney Representation
• Attitude Change – Action, Teacher
• Avoiding Institutionalization
• Cost Containment – State, County
• Retirement Plan for Parents
• Funding for Action’s College
• Work by Client – College, Medical Costs
This is a hypothetical example. Any similarity to a real situation is coincidental.
Action is in the detention center for simple assault on a teacher. His mother calls imploring us to keep her son out of an institution. Action steps include:
- Contact teacher assaulted, court, school and an attorney. Determine concerns. Mediate action plan.
- Determine expectations of teacher and school. Establish plan to make amends, alleviate concerns and monitor future behavior.
- Implement plan. Child must pay teacher’s medical bills by working for teacher, school or Chimorel.
- Monitor plan. Church volunteer and another teacher meet with youth and parents weekly to monitor progress.
- Attorney asks court to accept plan, providing documentation from teachers, school, youth, church and parents. When court accepts the plan, the probation officer receives ongoing updates from all involved.
Chimorel’s initial fee is set at $350. Because of Chimorel’s efforts and active work by the parents, the attorney’s actual time is minimal and he reduces his $750 fee to $200.
The parents decide to enter Chimorel’s 735 Plan which enables the following arrangements: $135 is paid initially by the parents. $200 contributed to Chimorel’s client assistance fund by the church pays the attorney. Action pays $50 initially and works off the teacher’s medical expenses and the attorney fee at $75/mo. He actually earns $150/mo, spends $25 and puts $50 in a college fund. The parents pay $100/mo until Chimorel’s fees are paid, then contribute to a mutual fund with the dual objective of Action’s college and their retirement.
Before we leave Action and his family, let’s consider some of the impact on society that this particular Plan may have accomplished. Costs of $5000 to $25,000/year to institutionalize Action weren’t required this time. Many of the negative attitudes Action may have formed while in an institution weren’t developed. The teacher’s medical costs were reimbursed. The negative attitude the teacher may have felt toward Action (and perhaps other students) had an opportunity to be reduced. Action began to plan for his future and to learn the value of work. He most likely changed his attitude toward authority somewhat.
Siam & Heis Were Involved In
• Goal Setting Interview
• Step By Step Financial Plan
• Active Recycling Program
• College Scholarship
• Self-Directed IRA
• New Client Referrals
• School & Church Recycling
• Change Your Life Meetings
• Volunteer Training
• Action Steps & Subgoals
This is a hypothetical example.
Any similarity to a real situation is coincidental.
Scroll to learn.
Siam and Heis Typical attend an Introductory Meeting at the invitation of a friend. They donate $35 at the door. Later that evening they sign up for an Initial Goal Setting Session and pay another $100. They write down five tentative goals and indicate an interest in planning through the 735 Plan.
At the Introductory Meeting, Siam and Heis receive information which will be part of their Family Action Planning Membership. They schedule their first goal setting session. Although a goal setting session is designed to clarify, reality test and develop an action plan for one goal, the Typicals (like most families) want to get maximum value for the money they spend. They will use the goal setting area to start action plans for all five goals, prior to the first goal setting session. Their goals involve a desire to:
1) Build a new house.
2) Start a college fund for Heis Jr.
3) Increase Siam’s income.
4) Help Heis Jr get a part-time job.
5) Help raise funds for their school and church.
As part of their planning the Typicals indicate an interest in reviewing their taxes, income and assets; taking steps to enhance their careers; learning investment strategies; as well as, reviewing wills, trusts, estate, health care and similar arrangements. Later they will have the opportunity to explore many other financial planning alternatives as part of their Step by Step planning.
First Goal Setting Session
Siam and Heis attend their first goal setting session with five general goals and the beginning of their action plans for each goal already started. To create their action plans, they just copied tentative plans for similar goals from information we provide and made a few modifications.
At the meeting there were 16 people, six couples and four individuals. After a brief discussion about goal setting, the group broke up into three smaller groups. The Planner and two assistants worked with each group to help clarify and reality test at least one goal for each couple and individual. Much of the reality testing happened as part of the interaction among group members.
As Siam and Heis clarify and test reality for each goal, the new house moved to fifth priority and Heis Jr’s education became a major priority. The new goals became:
- To develop an initial fund of $1000 for Heis Jr’s education within four months.
- To develop a complete plan to fund Heis Jr’s education, which would include his getting a part-time job. The plan should anticipate a total of $36,000, staged at approximately $9000/yr for four years, starting in September five years from now.
- To increase Siam’s income by $300/mo within six months.
- To raise funds to support their school and church. The amount and time frame for this goal would be established in the next three months.
- To build a new home valued at approximately $250,000 within six years.
At the conclusion of the Goal Setting Interview we give the Typicals some time to think. After several questions and more discussion of their action plans, Siam writes a check for $100 converting the Goal Setting Fee to a $235 down payment.
Siam and Heis enroll in a 735 Plan Family Membership. Their focus will be a Step By Step Financial Plan and they will become Active Recyclers. They decide on a one year renewal date and make commitments to pay $735 and volunteer 75 hours. As part of their membership agreement they decide to pay Chimorel $200/mo. $100 will be allocated to pay fees. $100 will be allocated for investment in a mutual fund in a self-directed IRA. In five months (after paying the cash portion of their 735 Plan) all $200 will be allocated to the IRA.
They set an appointment for an Information Confirmation Interview in two weeks. We point out the Personal Information forms and ask them to complete these forms/spreadsheets and email them to us in advance of the Confirmation Interview. We indicate that we will help them interpret the spreadsheets at the next interview, but they should do their own analysis also. They also have sample letters they can send to friends to initiate referrals. They are given the name & phone number of the Neighborhood Recycling Coordinator who will be contacting them soon. Within five days they receive a copy of our notes from the Goal Setting Interview. A brief telephone conversation confirms and revises these notes as appropriate.
Information Confirmation Session
The Typicals’ initial focus was a Step By Step Financial Plan. At the Information Gathering Session they narrow their initial focus to increasing their income and managing their assets. They asked themselves these questions:
- Are you genuinely satisfied with what you do and what you earn?
- Do you consistently save & invest 10% of your income after taxes?
- Do you plan your contributions or give spur of the moment?
- Do you have enough time and energy for the people you love and for supporting others?
Heis likes his job and thinks he will be getting regular raises adequate to be satisfied with what he earns. Siam is not satisfied. They are not currently saving 10% of their income and would like to find ways to contribute more time or money on a planned basis. Both have lots of energy. Neither has enough time.
After this initial discussion Siam says, “I have heard about comprehensive financial planning. How does this differ from Step By Step Planning?” To learn what we told her, click this link.
We took her to this section of the website, so she could evaluate what was involved in a comprehensive plan. Then we enabled Heis and Siam to understand what they were looking at as they discussed the charts, etc. that had been produced on their spreadsheets after they entered their information on the forms/spreadsheets. They had more questions and we took them to the appropriate part of their information and to various resources on the Internet to find the answers.
Little by little they were understanding how they could do their own financial planning Step by Step and develop their own strategies by using resources we made available to them. By opening the right spreadsheet and entering the right data they could evaluate Heis Jr’s educational needs, determine their retirement possibilities, evaluate their need for life insurance, determine estate liquidity issues, evaluate risk issues and their current benefit program at work. They could review the effect of certain trust, estate and charitable alternatives. It was like doing a comprehensive financial plan, but they were in control and they decided what was important. If they needed support, we will provide it to them, but they can keep their costs down by doing their own research or working with resources they can uncover.
The immediate concerns were Heis Jr’s education and increasing Siam’s income. They had set goals and developed initial action plans for these issues and they were beginning to act on their action plans.
At the conclusion of the Information Confirmation Interview the Typicals provide a list of referrals which helps them cover the Service portion of their 735 Plan Membership. We create letters for their signature and pay the postage. That week they call these referrals. The NRC has contacted them, conducted their recycling interview and given them their collection cart.
They talk about starting a recycling program at their church. We call their minister and set an appointment for all of us to meet at the church next week. Heis Jr looks up from the computer game he is playing and volunteers to take some information to his school principal. Within five days the Typicals receive a copy of our Information Gathering Interview Notes and a follow up call. At the next session we will review with them the plan that is developing. We point out the kinds of questions we will want to review going forward.
The Next Sessions
We start the next session by informing the Typicals that five of their referrals have set Goal Setting Interviews, which covers a larger portion of the Service component of their Plan. We also let them know that based on the recycling receipts from members of their church and the school that $75.38 will be sent to the missions committee and that $108.22 will be sent to buy computers at their son’s school.
Siam writes two checks. One for partial payment of our fees. The other to the trustee of her self-directed IRA. We complete the forms for the self-directed IRA and direct the trustee to invest the funds in a money market account while the funds accumulate to the $500 minimum investment we suggested.
Siam asks about a fund raising project to fund a scholarship for Heis Jr. We walk her through “Becoming a Resource Developer” on the website and provide her with ten Feasibility Study Questionnaires for Friends and Family. Heis Jr agrees to volunteer at a Recycling Center for ten hours over his spring break, which meets part of the Family’s 75 Service Hour commitment.
The sessions are becoming shorter and are scheduled monthly now, instead of every two weeks. The Typicals are learning how to find answers on their own. They provide email feedback and we respond. After each session the Typicals receive our session notes and a follow up call.
At another session we update the Typicals regarding client referrals, recycling at the church and the school, as well as, Heis Jr’s volunteer work. We assign a staff member to support Siam as she develops the fund raising project. She decides to host a series of Introductory Meetings. She has interviewed ten friends using our Feasibility Study Questionnaire and they have agreed to support her. She also sets a tentative date to meet with her friends and a Chimorel staff member. We give her ten Invitation to Get Involved manuals and meet with Siam and her friends at the scheduled time. Their accountant attends this meeting and provides several valuable insights. Before leaving the accountant discusses the possibility of an affiliate relationship. We provide her with a brochure describing affiliate relationships with Chimorel and our Standards for Associates and Affiliates.
The Typicals receive our session notes and a follow up phone call.
Siam Meets With Her Friends
Before the meeting with her friends Siam gives each of her friends a Mission, Roles & Goals Sheet, along with Invitation to Get Involved manuals. She takes each friend out to our website and shares the part of the website that will support each friend. She asks each of them for a ten hour volunteer commitment and to develop a list of 10-30 people to call. She concludes her invitation by saying “I’ll ask you to become a Member when you arrive.”
The Action Steps for this meeting include:
- Chimorel’s assigned Resource Developer meets at Siam’s house with Siam and ten volunteers.
- Each volunteer is asked to become a Member. The Resource Developer and Siam make $50 donations. When invited each volunteer should anticipate making a donation of $50+. Siam acts as treasurer.
- Tentative scripts are provided and each volunteer reviews Chimorel’s tentative Script. The need for follow up is discussed.
- One volunteer agrees to input follow up data and is given access to a Chimorel computer if needed.
- Each volunteer identifies 10-30 people to call. Each list is coordinated to avoid duplicates and conflicts. Chimorel provides additional names to each volunteer as needed.
- The group decides when and where the next three meetings will be held.
- People are assigned to handle refreshments and we suggest cooperative businesses to defray costs.
- A mini Introductory Meeting is conducted. At the conclusion feedback and suggestions are sought.
- Volunteers are asked to develop tentative scripts for review at future meetings.
- Follow up procedures include sending/delivering invitations/confirmation letters/calls, call backs to those who don’t attend after the Introductory Meeting, thank yous and decision confirmations for those who do attend.
- The Resource Developer and Siam follow up with the Volunteers – encourage, answer questions, solve problems, record results and provide more names if needed.
To accomplish all of the things discussed above could take four to six hours. Because no meeting should take more than two hours, it may be appropriate to schedule several meetings with the volunteers or to use Chimorel’s on line resources. We will be developing procedures to expedite this process, perhaps with your input.
What Happens Next?
At the next sessions we:
- Review any changes in the Typical situation or objectives and any alternate suggestions by other advisors.
- Review what has been accomplished since the last meeting.
- Determine specific actions to take.
- Determine additional information needed to make decisions on any recommendations not yet implemented.
- Discuss other friend’s or associates who may be interested in Chimorel’s services.
- Determine action steps to be taken by the planner and the Typicals.
- Schedule the next meeting.
- Again update the Typicals regarding referrals and recycling activities.
Siam took her friends out to Chimorel’s website to collect $420 in donations from her ten friends, herself and the Resource Developer. She completes a Scholarship Application. We briefly discuss plans for Siam’s first Introductory Meeting. She and her friends have 70 invitees tentatively scheduled to meet at the church next week. Heis Jr sets a goal to raise $2000 for college as an Active Recycler.
At Siam’s first Introductory Meeting at the church forty people actually attend. $1500 allocable to the Education and Employment Opportunity Committee is raised. When Siam and her friends call back the 30 that couldn’t attend, many apologize and collectively donate another $900. Fifteen also agree to attend a Pot Luck Siam’s group is planning for their next event. While putting her fund raising project together and at the Recycling Center, Siam has volunteered at least 40 hours at this point. The EEO Committee provides Siam with a certificate awarding Heis Jr a $1410 scholarship. The committee then deposits this amount into a fund for Heis Jr’s college education.
At the Next Implementation Session Siam and Heis are excited. Siam is considering becoming a full-time Resource Developer. The discussion items follow a pattern similar previous sessions, but there is a new sense of reality and electricity in the discussion. The possibilities of genuinely supporting other people, while achieving their own goals are much more tangible now. Much of the discussion is about enabling a lot of people fund their college education. We explore the possibility of assisting people to downsize, using their assets for auctions and Chimorel4U, our eBay Store.
We ask Siam to spend some time inputting scholarship sources into our computer. She enthusiastically agrees. When she is done we send out letters to 200 potential scholarship sources. Heis Jr proudly shows us the receipt for the first $100 deposited to his college fund for his active recycling work. Let’s see that was $1500 after three months. They set a new goal of $2100 every three months, so in four and a half years they might have over $40,000.
This story continues. We expect the Typicals will set new goals regarding a house, increased education and more, but then that’s another story. As a Resource Developer, Siam will significantly exceed her income goal. If you explore Youra’s story, you will learn about payment alternatives and other services.
$1410 Scholarship
Chimorel has at least four ways to help you find the funds for college through its College Bound program. One way is our Guaranteed Scholarship. Each person can raise up to $4000 for one person and receive a guaranteed $2000 scholarship each year. Siam has ten friends helping her. Together they could raise $44,000 each year and create a $22,000 annual scholarship for Heis Jr.
The $1410 Scholarship Heis Jr received is half of the $2820 amount Siam and her friends raised in three months ($420 at the first meeting, $1500 at the Introductory Meeting, $900 in follow up). They can go on to raise much more. What Siam didn’t know was that the Board decided to allocate the other half to Heis Jr’s scholarship, because of all the work Siam has done to expand Chimorel’s outreach, once she has enrolled ten people as a Resource Developer.
As indicated above, Heis & Siam work with Chimorel to determine what fund to allocate the funds raised until the college or training program Heis Jr’s will go to has been determined.
Youra Learned To
- Deal with husband’s alcoholism, daughter’s drug abuse.
- Raise income $200+/mo in two months.
- Raise income to $35k in three years.
- Barter for a car and a computer.
- Keep costs low for a variety of services.
- And much, much more.
This is a hypothetical example.
Any similarity to a real situation is coincidental.
Scroll to learn.
Youra's Problems
Youra Client is presently facing several significant problems. Her husband, Alco, has a severe drinking problem and has just lost his job. Her 16 year old daughter, Snow, is coming home high and sometimes isn’t coming home. Youra’s income isn’t adequate. She’s frustrated and scared when she comes to a Change Your Life meegting at Ima Neighbor’s suggestion.
The First Goal Setting Session
Youra paid $135 and signed a 735 Plan Agreement for Services at the Change Your LIfe meeting. Ima had explained that an Action Planner membership initial fee was $250. Ima advanced the $135 in exchange for Your’s doing some housework for her. Youra decided to go straight for a 735 Plan Lifetime membership and agreed to a seven month installment plan of $100/mo, which she earned by doing housework for Ima.
At the initial interview Youra set three goals: (1) To raise her income level by $200/mo within two months. (2) To raise her annual income from $17,000 to $35,000 within three years. (3) To develop a $50,000/yr retirement plan within 25 years. She indicated she wanted to convince Alco to stop drinking or she might divorce him. She wanted to get a better car and would like to add on to the house. She wanted to reduce her bills. She wasn’t sure what to do about Snow. We asked Youra to put a tentative value on these improvements in her life. We will provide these values in a future update to this section.
At her initial interview Youra established the following action steps: She would start training to become a part-time Resource Developer for Chimorel. She received infirmation and began studying this information. She took home ten Feasibility Questionnaires, ten goal setting sheets, and some Chimorel literature. She would give the literature to Alco, Snow and some friends. She would use the Feasibility Questionnaires and goal setting sheets to conduct interviews with friends and she would ask these friends to support her. She would spend her spare time learning about Chimorel and setting appointments. She would stop trying to convince Alco and Snow to change. She would wait until they asked her about what she was doing. If they asked her, she would suggest they visit Chimorel’s website and nothing more. She would complete a cash management form to evaluate her current income and expenses. She set her next appointment nine days away.
The Second Appointment & Beyond
At the second appointment Youra was confused, excited and a little angry. Alco had come home drunk the night before, vomited and then collapsed in the middle of the kitchen. She had left him where he was instead of cleaning him up and putting him to bed. Snow had asked her why she didn’t yell anymore and why dad was on the kitchen floor.
Youra had talked to five friends. We told her that one of the friends had called for an appointment. Youra reviewed her budget. Then she decided to take Alco’s name off her checkbook, to put all her money in her checking account and to stop having any money around the house. Her budget review indicated that she would save an average of $135/mo by refusing to pay Alco’s liquor bill. Three days later Alco called Chimorel. He was very angry and refused to set an appointment.
The next five months were a time of trial and growth for Youra. She attended Alanon meetings. An intervention was held with Alco which involved Youra, Ima, Snow, Alco’s previous supervisor and several concerned friends. Youra told Alco that she would divorce him if he didn’t seek treatment and stop drinking. Alco’s supervisor said Alco could have his job back if he got treatment and stopped drinking. Snow said she would stop using drugs if Alco stopped drinking. Alco went to treatment.
Over the next year Youra needed a period of intense counseling (30 hours) and telephone support (20 hours) to help her deal with Alco’s drinking and Snow’s drug abuse. She also attended 26 (avg of 1 every 2wks) group sessions, got professional help from an attorney, received our periodic emails, started a training program and got three of Chimorel’s Training Programs. She applied to the Client Assistance committee for help getting a car and a computer.
Our Services
Counseling and Telephone Support
The counseling and telephone support helped her learn to focus on her needs, review her budget, plan Alco’s intervention, cope with Alco’s anger and Snow’s needs, develop her own support system (Alanon, friends, group, work), and develop the motivation for her to increase her income. She used the group sessions for Active Parenting (6 sessions), a support group she helped organize (16 sessions), and a series on financial planning (4 sessions). To review how Youra paid for her counseling & telephone support scroll down.
Professional Services
The attorney helped her plan a will, interceded once when she thought she might need a restraining order for Alco and gave her a feeling of security knowing she could get legal help when she needed it. He only met with her once, talked with her briefly by phone several times and reviewed the will she wrote using one of Chimorel’s computer programs. He agreed to discount his fee from $500 to $250, if paid by Chimorel and if she volunteered ten service hours. She spent five focus hours developing her will and reviewing alternatives to deal with Alco, thus reducing the time required with her attorney. To review how Youra paid for her attorney scroll down.
Periodic Emails
Periodic emails will become a standard part of Chimorel’s 735 Plan. The cost can be as low as $25/yr for bimonthly newsletters and special opportunity notices to $500+ for a series of regular newsletters, interactive mailings, and telephone counseling based on the return of interactive questionnaires.
The emailings can be targeted to meet a member’s needs, and in some cases may include subscriptions to nationally recognized advisory services. Youra chooses the standard program which provides her with financial planning, recycling, educational and human service opportunities. Youra discovered the interactive emails helped her financial planning much like a Comprehensive Plan might. To review how Youra paid for her periodic emails scroll down.
Committees – Car & Computer
When Youra applied to the Client Assistance committee for help in getting a car and a computer, the committee referred her application to the Employment & Education committee. This committee responded by offering Youra a car that had been donated, if she met two conditions: (1) she would pay for the repairs needed and (2) she would establish a scholarship fund equal to or greater than the value of the car. Youra paid $700 to fix the car at a local college’s auto mechanic program. The car was valued at $7000 retail and $4500 wholesale. She initiated a $2000 scholarship fund by seeking donations of $100 from ten friends and held five bake sales to raise another $1000. One of the clients Youra introduced to Chimorel agreed to apply for a grant from several corporations and was successful in raising $25,000. Because Youra had introduced the client, he agreed to allocate the $25,000 to Youra’s scholarship fund in exchange for Youra’s naming the fund after him, provided Youra continued to raise money for the fund. Youra raised another $2000 later that year. Periodically other clients helped her contribute to this scholarship fund. To see the results of the Scholarship Fund and how she bought her computer scroll down.
Training Programs
Youra began her training online. Later she got three training programs on a flash drive: “How To Use a Computer – Excel & Word”, “Retirement, Social Security & Investing”, and “Home Builder.” She spent sixty hours learning the material on the flash drive and responding to the interactive forms. To review how Youra paid for this training scroll down.
How Youra Paid for Her Support
Detail of Youra's Service Explained
Goal Setting
Youra decided on a 735 Plan at her initial meeting and established a payment plan to pay $600 over six months. Her entire amount of $735 was paid by Ima Neighbor in exchange for housework. This meant that there was no interest on her payment plan, saving a minimum of $75. Through out the year Youra completed 126 service hours, which more than met her 75 hour service requirement for a 735 Plan.
Professional Advice
Yes, having a good attorney available was comforting. It was good to know he was there, but she kept her costs down by doing a lot of the work herself. If her time was worth $10/hr, she traded $150 for $250, but she didn’t pay taxes on the attorney’s discount.
Traded $150 for $250? For the services provided the attorney would normally have charged Youra $500. She spent 5 hours researching and preparing her will and another 10 service hours or a total of 15 hours. At $10/hr this would be valued at $150.
Didn’t pay taxes? When you buy something for a discount, there is no tax on the difference between what it might have been and what you actually pay for it. There is also no tax on the time you spend doing things for yourself that you could pay someone else to do for you.
Counseling , Groups & Telephone Support
Youra received 30 hours of counseling, 26 hours of group and 20 hours of telephone support. At standard billing rates, this would have cost her a total of $6410 ($4500 + $910 + $1000). Her 735 Plan saved her $4150 (3000+650+500) cash discount. The $2260 balance was further reduced by her participation with Focus $, thus saving her an additional $910 (750+60+100).
Youra needed a lot of support while she worked through her problems with Alco and Snow. It also took some time to develop her own self-confidence. Chimorel was there when she needed support. The cost for the support she received elsewhere could easily exceed $7000. As noted above, our regular fees for this support would have been $6410.
Youra’s out-of-pocket cash for in depth counseling was $750. Her Focus dollars covered an additional $750. We discuss the many ways she covered these costs under “Youra’s Payment Choices.” Her 30 hours of counseling centered on achieving her goals with a comforting ear when she needed it.
Her 26 group sessions (avg 1+ hrs each) and 20 phone support hours actually gave her 46 hours of training and support at a cash cost of $700 and Focus cost of $300.
Developing her own support group (with a little guidance) gave her a great deal of self-confidence. Talking on the phone sometimes 7-10 times/wk with a friendly voice, even for only 5-10 minutes, enabled her to live through some tough times.
Youra got what she needed and kept her cash costs down. She enjoyed her service hours and the service hours moved out-of-pocket cash to Focus dollars. Her service hours also trained her to do follow up work as a Resource Developer.
Periodic Emails & Education
Youra paid $50 cash and $100 Focus Dollars for a $500 value in training through periodic emails. If she had to pay the $500 out of pocket it would have cost her $640 (500+15% fed+7%FICA) to cover this cost.
The three Educational programs came as part of the CD she received with her 735 Plan.
Her Focus Hours were spent learning financial planning and other self-improvement strategies provided by her periodic emails and educational programs. These Focus Hours were credited when she completed specific tasks and are not taxable.
What are Focus Dollars and Focus Hours?
We will explain this more completely if you continue to explore. Briefly Focus Dollars are dollars you don’t have to reach into your pocket to pay. We also call them Chimorel Bucks. If you buy something on our website, the commission we receive that you can offset fees with are Focus Dollars. Focus Dollars can be taxable.
Focus Hours are hours you spend doing something to accomplish one of your goals. Focus hours are not taxable, just like the time you spend studying for high school or college is not taxable.
Car & Computer: Chimorel Cooperative
As a 735 Plan member, Youra automatically has her first year’s membership in the Chimorel Cooperative paid for. Although the Chimorel Cooperative is not formalized yet, the benefits are still available to Youra. One of these benefits is to buy or barter for products, like a car or computer, which have been donated to Chimorel through its recycling and reuse programs. Another benefit is that profit members of The Chimorel Group and other affiliates offer discounts to members. Youra can also buy things from our Buy Stuff area on the website, which has discounts available.
Youra was able to negotiate deals for a car and a computer and save a substantial amount of out of pocket cash in the process. Her work to establish a scholarship fund earned her a $7000 car at the wholesale price of $4500, essentially granted to her by the Education & Employment Opportunity Committee. She earned the car in exchange for her work plus $700 in repairs. She will probably have to pay income taxes amounting to about $950. In effect she got a $7000 car for $1650 (700+950) while enabling Chimorel to establish a scholarship fund. If she had financed a $7000 car at 7% for three years and paid taxes at 25%, the car would have cost her approximately $9485. Financing the $850 computer after taxes would have cost her $1122 instead of about $368 (250 cash + 113 taxes).
Taxes
It is said that the only two certainties in life are death and taxes. Maybe this is why most of us don’t think about the cost of what we buy after taxes.
We want to bring the cost after taxes to the think about it level, because if you can buy what you want and need at a lower taxable amount, legitimately, you can buy more of what you want and need.
One legitimate way to pay lower income taxes is to buy/barter at the wholesale level instead of the retail level. Of course, buying wholesale instead of retail saves you money; however, it is still taxable, just at a lower level.
Youra's Payment Choices and Earnings
Youra’s Payment Choices
Youra chose to meet her $735 minimum cash commitment through a monthly payment plan. She paid her first installment of $135 at her initial interview by housework for Ima. Over the next several years she continued to work for Ima earning $135/mo. She allocated $100/mo to her 735 Plan fees, then allocated $100/mo to an investment account. The $35/mo balance covered taxes and a little spending money. She had a $2250 cash balance after her initial $135 down payment. After six monthly payments of $100, she covered the remaining $1650 by ongoing monthly payments as her earnings increased.
How Much Did Youra Earn?
As a part-time Administrative Assistant Youra earned $1045 or approximately $780 after taxes, during her first 38 weeks with Chimorel. During her first nine months as a Resource Developer, Youra earned $7510. Then she decided to become a Case Management Coordinator and earned an additional $7800 during the next three months, while she made preparations to go full-time with Chimorel.
Youra’s Earnings Detailed
Although there are many other sources of revenue for Resource Developers and Managers [Individual, Family, Small Business/Nonprofit, Corporate and $5000 memberships, as well as, a wide variety of programs and client support avenues], we simplify this part of the discussion by considering only Action Planning Memberships sessions and 735 Plan memberships.
During her first nine months Youra developed an average of 14 new clients per month. 7 became new 735 Plan members ($50 each minimum). 7 entered became Action Planners ($20 each minimum). By her third month she recruited, trained and managed five Resource Developers ($200 each). Her Resource Developers brought an average of 30 new clients to Chimorel each month. Typically 10 became 735 Plan members ($20 each) and 20 became Action Planners ($5 each). At the end of her ninth month Youra decided to become a Case Management Coordinator. She had earned $7510 during the approximately 38 weeks working an average of 12 hours/wk, thus earning about $16.45/hr.
Starting in her tenth month she began developing 20 new clients/mo: 10 735 Plan members and 10 Action Planners. She discussed her decision to become a Coordinator with her Resource Developers. Together they recruited and trained five Resource Developers each month for three months, or 15 additional Resource Developers. Youra recruited, trained and supervised five ($200 each) and managed the training and supervision of ten by two supervising Resource Developers (developed from her original five).
Youra continued to supervise six Resource Developers who together began developing 60 new clients/mo – 25 735 Plan members, 35 Action Planners. Her two Supervising Resource Developers each managed 6 Resource Developers. Together these 14 people developed an average of 100 new clients/mo – 40 735 Plan members ($5 ea), 60 Action Planners. During this three month period Youra assumed case management duties for 100 clients ($10/mo each) and no longer performed administrative duties for Chimorel. She earned $7725 working an average of 24 hours/wk for about 13 weeks or approximately $24.75/hr.
Becoming a Case Management Coordinator
With a very hectic schedule, working on average 55-60 hours per week at her regular secretarial position and at Chimorel and Youra had increased her income by $8555 in just nine months. She realized that by working for Chimorel fulltime as a Case Management Coordinator, she could achieve her $35,000 goal in less than two years. She began laying the ground work. Her duties would involve being sure that each member got the appropriate interactive mailings, that counseling and group sessions were scheduled as needed, that meeting notes were completed and mailed, that the phone support system worked for her clients, and that many other details were taken care of.
On the basis of her demonstrated track record Youra was confident that she and her Resource Developers could generate 150-200 clients per month and that she could manage an additional 100-300 existing clients per month. Chimorel provided Youra a $25,000 contract with an additional $4000 in benefits, a $5000 bonus every six months if she met her minimum goals and potential increased benefits and bonuses as she exceeded her goals.
Youra’s Evaluation
When Youra began her new position as a Coordinator, we asked her to do a cost benefit analysis of her first year working with Chimorel. First she considered her income improvement. She based this on what she had actually earned, not on her new contract. She reminded us of the $138/mo savings from Alco’s liquor bill. Next she re-valued the improvements in herself and her relationship with Snow and Alco. We asked her to estimate how much of each improvement was based on her efforts and how much was based on Chimorel’s services. After her evaluation, Youra thought she would have something to share with prospective clients.
Youra set Chimorel’s improvement with Alco & Snow at 3 years, assuming that a lifetime improvement would be based primarily on her efforts, not on ongoing services from Chimorel. She felt that her own improvement would last her the rest of her life, which we set at 10 years.
She made a distinction between actual cash benefits and lifestyle improvements. She included the value added by her computer and car under Lifestyle improvements and gave Chimorel credit for 100% of this difference between the value and the amount she paid. After summing these benefits she added a value for her future earnings and the new home she was planning.
She calculated her income by adding $1045 (administrative work), $1000 (grant) and $7510 + $7725 (res dev) For a total of $17,280. Then she subtracted her taxes at 25% or $4320 for a total income improvement of $12,960. Her out of pocket “cash” costs were $1450.Valuing her income improvement and Alco’s liquor bill savings as a cash benefit, she had a 7.9:1 benefit ratio. She calculated the value added for the computer as $1122 (after taxes & financing) less what she paid of $368 (after taxes) or $754. She calculated the value added for the car as $9485 (after taxes & financing) less $1650 (after repairs & taxes) or $7835. Total value added for car & computer was $8522. Considering all the benefits against her total dollar cost, she estimated a 24.7:1 benefit ratio. Taking into consideration Future Improvements gave her a 38.7:1. Without all the deductions, it might have been much higher. Oh, did she forget the retirement plan and attorney? Well, anyway you figured it, she was happy.
Our Analysis
We did our own analysis. Youra’s efforts brought in $31,000 in donations, 20 new Resource Developers, over 450 new clients, and enabled the office to run more smoothly. There were a lot of people who were accomplishing their goals. We bet a few colleges, a few businesses and even Uncle Sam were better off because Ima introduced Youra to Chimorel. Of course, Ima’s progress is another hypothetical story. Maybe, you’re ready to make your story real?
