Volume 2, Issue 2
Table of Contents

Cover Story:
Banking On Change
Rockland’s financial institutions adapt to a changing county’s needs

Feature Story:
Give Him Credit
Palisades Federal Credit Union CEO/President Mark Welshoff just wants to save you money

RBD Round-Up:
What's Your Opinion?
County Exec Signs Ban on Smoking in Cars. Do You Agree?

DEPARTMENTS:

Economic Round-Up
• The Smart Investor
Your portfolio is doing great, so why rebalance?

Retail Round-Up
• Delinquencies Decline
Credit card loan delinquencies decline In first quarter of 2007
• New In Town
Businesses opening or expanding in Rockland and Orange Counties
• Why Are The Chains Everywhere?
Retailers who reinvent themselves stay successful

Invest in Your Community
• Red Cross Honors Volunteers
Two award recipients from Rockland County
• Dress Success
Local dentist helps disadvantaged woman get her life together
• School Supplies Drive
Rockland County Board of Realtors annual drive is here
• Non-Profit Calendar

Dedicated Section:
Rockland Business Association:

The President’s Desk
Time To Celebrate!
RBA marks 40 years of community involvement

Call For Memories
RBA asks for your help to celebrate its 40th anniversary

RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members

Many of us—even some in the field of finance— grow up thinking of money as this mysterious entity that has only to do with numbers and formulas. Some of us are even convinced that if we have enough money, we are guaranteed happiness for the rest of our lives. Others have no concept of money.

The concept of “money maturity” is a relatively new one that is meant to describe how “mature” one acts psychologically and spiritually in relation to money. The phrase has been popularized by George Kinder, a financial planner and Buddhist teacher, in his book, The Seven Stages of Money Maturity: Understanding the Spirit and Value of Money in Your Life.

According to his philosophy, someone who is “immature” monetarily may spend his entire paycheck as soon as he gets it or may pinch every penny, thinking that he will go bankrupt if he spends as much as one dollar on something that is not a bare essential. Many of these detrimental practices are often a result of one’s upbringing.

In contrast, someone who is “mature” has achieved balance on both sides of the coin. He knows when it is time to save, and when he can let loose and spend some of the money he has earned. And he can even give some of it away on his own good nature without fear. According to Kinder, there are seven psychological stages of “money maturity” through which one must progress before he can be fully enlightened in a financial sense.

The first two stages are “innocence”, which is knowing nothing about money; and “pain,” the heartbreaking realization that one must work in order to earn money, which yanks one out of the “innocence” stage. These are what Kinder deems the “immature stages,” as people in both stages exhibit a myriad of behaviors that are counterproductive to their financial well-being.

However, there is hope. From there, the first stage of maturity is “knowledge,” where one learns how to save properly and is introduced to the basic concepts of investing, such as stocks, bonds, and mutual funds. The theory here is that by investing money, one helps to set a concrete goal for his/her savings so that the “angst” they have over it is lessened somewhat.

Stage Four is that of “understanding.” This stage involves recognizing how one’s emotions play a major role when it comes to all things money-related. The principle behind this stage is that when one recognizes his or her emotional connection to money, they will not allow these emotions to overtake them when making decisions related to their financial well-being, as even the most savvy of us are prone to do.

From understanding is said to stem “vigor.” This one develops the energy to apply newfound understanding of one’s emotions in reevaluating financial goals and taking the necessary steps to reach them.

The sixth step, “vision,” involves the application of “vigor.” Here, one uses the knowledge gained in the previous steps to use their financial savvy to help others, perhaps by starting a business intended to provide a useful service to the community at large. The final step, “aloha”, is when one uses that same savvy to help others, but for altruistic purposes and goals. Examples may include founding a non-profit organization.

While we are not attempting to plug Kinder’s book, we do believe that this concept we have described carries a great deal of truth and merit. Many people spend countless hours worrying about money when they have a great deal of it. Conversely, many spend frivolously past the point where their expenses outweigh their net income. By taking a few minutes to learn more about “money maturity,” we believe that anybody can outgrow those behaviors that may be plaguing their financial well-being. RBD

Ken Mahoney is the president of Mahoney Asset Management. He can be reached by phone at 845-371-0101, or visit his web site at : www.thesmartinvestors.com.

Name	Symbol	Wachovia	WB
Wyeth	Wye	Dress Barn	DBRN
Verizon	Vz	Pharm Resources	PRX
AT&T	T	Usb Holding	UBH
Barr Labs	BRL	Provident Bank	PBNY
Footstar FTAR	FTAR	Bank of NY	BK
Novartis	NVS	Gannet	GCI
Avon	AVP	Presidential Life	Plfe
Praxai	PX	Paxar	PXR
Lecroy	LCRY	ConEdison	ED

This is for your information only and is not an offer to sell, or a solicitation of an offer to buy, securities or instruments mentioned. Information has been obtained or derived from sources believed by us to be reliable, but we do not represent that it is accurate, complete or timely. Any opinions or estimates contained constitute our judgement at date of publication and are subject to change without notice.

This Stock Index is comprised of local stocks of interest based in Rockland County. The chart reflects the collective stock price performance based on a standardized benchmark of 1000 on January 1, 2003. Any market prices are only indicators of market values and are subject to change without notice. It is not possible for an investor to directly invest in the Rockland Stock Index.