the tiny houses phenomenon an information...
TRANSCRIPT
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www.thecounselorscorner.net
The Tiny Houses Phenomenon –
An Information Session
November 16, 2016
www.thecounselorscorner.net “Online Training Done Right”
Get to Know Your Presenter
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Robin Stout Migala
• Consultant to the industry
• Over 45 years’ experience in residential lending and default
servicing
• 23 years with Freddie Mac in Housing Outreach
• Specialty in loss mitigation and foreclosure prevention for
housing counselors and real estate professionals
“Online Training Done Right”
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Get to Know the Subject Matter Expert
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Alexis Stephens
“Online Training Done Right”
• Tiny house dweller and advocate
• Documentary filmmaker with Tiny House
Expedition, co-director of the educational
documentary Living Tiny Legally
• National Coordinator, American Tiny House
Association
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GoToWebinar
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The Counselor’s Corner…
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Polling Questions
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• I will ask you a question
• You will then vote
• I’ll share the results with everyone
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The Tiny Houses Phenomenon
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Our objective today is to enable you to:
Learn the history of the Tiny House movement
Study the pros and cons of Tiny House ownership
Understand the code challenges for Tiny Houses
Gather information to help you educate your clients
Get resources available for you and consumers
DISCLAIMER:
This training is a summary of the public information available about Tiny Houses. There are currently no major lending programs available for this product. This
training is meant for educational purposes only. For additional information, please see the resources at the end of this presentation.
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Polling Question #1
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Is there a Tiny Houses movement in your area?
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Background on Tiny Houses
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• Sarah Susanka is an architect who published her book “The Not So Big
House” in 1997
• Jay Shafer and others founded the “Small House Society” in 2002
• In 2005, tiny houses were built as an alternative to FEMA trailers
• The 2007-2009 housing crisis spurred a demand for more affordable
housing
• Tiny houses have also been used for the homeless and veteransSource: Census Bureau
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What are Tiny Houses?
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• No definitive definition
Jay Shafer’s original tiny house on wheels is only 96 sq. ft. Here’s the video.
• Tiny houses on foundation (various styles). Residential dwellings under 1,000 sq. ft. and usually
under 500 sq. ft.
Regulated only by local, state and national building codes and local zoning codes
• Tiny houses on wheels (THOW), under 400 sq. ft.; land not included
No regulation in most municipalities across the U.S., or regulated as RVs, usually subject to local zoning codes as
they apply to RVs.
• A typical tiny house has kitchen, bed (often lofted), living space, and bathroom with shower
(often with composting toilet)
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What Do Tiny Houses Look Like?
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Residential
https://www.google.com/search?q=tiny+houses&newwindow=1&biw=1280&bih=653&sourc
e=lnms&tbm=isch&sa=X&ved=0ahUKEwiIwf-0io7MAhVFVz4KHRrOCj4Q_AUIBigB
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Who Wants Tiny Houses?
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• Minimalists
• Environmentally aware
• Lower income
• Freedom seekers
• Students
• In-laws
• Retirees
• Lost a previous home to foreclosure
http://www.fyi.tv/shows/tiny-house-nation
http://www.hgtv.com/shows/tiny-house-hunters
http://tiny-themovie.com/
http://www.smallbeautifulmovie.com/
http://www.hgtv.com/shows/tiny-house-big-living
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What are the Types of Tiny Houses?
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WheelsConcrete slab foundation
Hybrid – skids/piers/runners Park model
Interior
http://www.containerhomeplans.org/2015/06/top-10-tiny-shipping-container-homes/
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What is the Difference Between Trailers and Tiny Houses?
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Basically…aesthetics, insulation, sturdiness, customability.
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Where Can a Tiny House be Built/Parked?
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Rural land
Back yard
RV park
Mobile home park
http://tinyhousecommunity.com/places.htm
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Polling Question #2
Do you know anyone who is living in a Tiny House?
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What is the Cost of a Tiny House?
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DIY –
• Finding materials at reasonable price
• Lack of experience in building
• Takes a long time
• Access to large equipment if building
a tiny house on a foundation
• Paid in full
• Pride of ownership
Professional buy or build –
• More expensive
• Savings to pay cash
• Well built
• Quicker to complete
The first big decision is whether to build the house DIY or hire someone else to do it.
The answer is…
Probably $4,000 on average for the basic shelter (which would actually be a shed rather than a house) to
about $25,000 on average for the DIY and up to $80,000 (average $40,000) for professional build.
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How Do Tiny Houses Get Utilities?
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• On the grid
Water – potable hose to outdoor faucet
Power – heavy-duty extension cord
Sewer – city sewer or septic, depending on location
Internet and cable – standard service provider
Heat – gas or electric
Trash – local trash pick-up
• Off the grid
Water – holding tanks or carrying it in
Power – solar or wind
Sewer – composting or container toilet
Heat – wood, propane
Internet and cable – wireless and/or satellite
Trash – local dump and composting
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Who Will Insure Tiny Houses?
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• Standard coverage for RV-manufactured tiny houses
• Lloyds of London’s Tiny Home Insurance Program
AZ, CA, CO, ID, MT, NV, OR, UT, WA
• Blackadar Insurance Agency
FL
• Strategic Insurance Agency
CO
• Darrell Grenz Insurance Agency
OR
Shelter Mutual Insurance Company
• Insure as personal propertyhttp://www.insurancequotes.com/home/tiny-house-insurance
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Code/Deed Restrictions on Tiny Houses
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• Building permits
• Location
• Building materials
• Amenities
• Utilities
• Size
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Who Builds Tiny Houses?
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• Tumbleweed Tiny House Company , longest
running tiny house on wheels builder
• Tennessee Tiny Homes, California Tiny House,
Wishbone Tiny Homes, Simblissity Tiny Homes
and several other tiny house builders & many
custom craftsmen, like Perch & Nest
• More builders by state
• Tiny house builders on HGTV
Information on financing is on the next slide.
Relax Shacks and Tiny House Build are
organizations that conduct building workshops.
Four Lights Tiny House Company started out
making tiny houses and now sells tiny house
building plans. Many other tiny house designers
offer building plans, like Sol Haus Design
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Who Finances Tiny Houses?
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• Unsecured loan if not on
permanent foundation
• Up to $100,000
• Up to seven years
• 68% of tiny home
buyers/builders pay cash
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Top Five States for Tiny Houses
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Five Tiny House Villages for the Homeless
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SOURCE: Building Together. Tiny House Villages for the Homeless: A
Comparative Case Study by Catherine Mingoya
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Tiny Houses for Veterans
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Local efforts to provide shelter for homeless veterans:
Racine, Wisconsin
Huntsville, Alabama
Grass Valley, California
Nashville, Tennessee
Murfreesboro, Tennessee
Crainville, Illinois
Dallas, Texas
Kansas City, Missouri
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Tiny Houses for Persons with Disabilities
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• Tiny Home Community Collaborative – housing as healthcare.
http://xdsinc.org/initiatives/
https://www.facebook.com/tinyhomecommunitycollaborative
• NextDoor Housing – based in Minnesota.
http://www.nextdoorhousing.com/
https://www.mprnews.org/story/2016/08/11/minnesota-granny-pods-portable-housing-elderly
• Habitat for Humanity of Cabarrus County’s Tiny House Pilot Project – North Carolina.
http://habitatcabarrus.org/apply/ownership-program
http://www.charlotteobserver.com/news/local/community/cabarrus/article25482982.html
• “Small Space, But Still Accessible” – national.
http://www.abilities.com/community/inclusive_small-spaces.html
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The Eugene and The Madison Stories
• SquareOne Villages has had a long successful
record in Eugene, OR, with their Opportunity
Village. This is a transitional tiny house village
for homeless. They are now working on Emerald
Village, a permanent tiny home village, which
has been recently approved by the city.
• OM Village (Madison, WI) has a successful
record (tiny house village for homeless). After
their first year, they won over many of their
original NIMBY critics.
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The Los Angeles Story
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• Over 30,000 people sleep on the streets in L.A.
• There are not enough shelter beds or transitional housing for
L.A.’s homeless. There is also a severe lack of affordable
housing.
• Elvis Summers, a former homeless person, built 37 tiny
houses for the homeless in L.A. in 2015 under a 501c3
• In February 2016, the City of L.A. impounded several of the
structures due to health and safety risks
• In April 2016, the City of L.A. agreed to give the confiscated
tiny homes back to Summers
• The City of L.A. is developing a process to work with
nonprofits on the issue (not directly with Elvis)
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Community Development/Improvement
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Organizations who can and have become involved in the Tiny House movement:
• Community Development Corporations
• Economic Development Corporations State of Colorado Economic Development Department
• Community Land Trusts
• Chambers of Commerce
• Other local affordable housing advocates
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Neighborhood Stabilization
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Benefits of tiny houses for communities:
• Cost effective and affordable
• In-fill building cleans up blight and
adds value to under-utilized land
• Shorter time to come to market
• Increases consumer spending
• Provides privacy
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Polling Question #3
Do you think your agency will get involved with Tiny Houses?
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PROS – ACCORDING TO OWNERS
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• Affordable
• Mobile if on wheels
• Easy to clean
• Less maintenance
• Easy to renovate
• Warm and cozy in winter
• Can be cool in summer with fans
• Environmentally beneficial
• Fosters community
• Learn how to live creatively
• Some have flush toilets
• Personal freedom
• Financial freedom
• No mortgage payment
• Lower property tax
• Energy-efficient
• De-cluttered life
• Produce less waste
• Some have washers/dryers
• Encourages active lifestyle
• More ability to save
• It feels right
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CONS – ACCORDING TO OWNERS
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• No home office space
• Less personal space
• Not enough storage space
• Claustrophobic
• No room for exercising
• Hot in the summer
• Vulnerable in severe weather
• Small kitchen and appliances
• Less privacy
• Non-flush toilets and no bathtub
• No sub-floor
• Difficult with children
• Time and energy to build
• Socially awkward
• Everything is a work in progress
• Institutional discrimination
• Gets dirty/cluttered quickly
• Difficult to keep pets
• No room for guests
• No room for pantry
• Standard furniture too large
• No dining room
• No dishwasher, washer or dryer
• NIMBYism
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Tiny House Decision Checklist
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• Ready to downsize, mentally and physically?
• Can you wait for it to be built?
• Do you like to share?
• Code restrictions overcome?
• Type – permanent or wheels?
• Financing available?
• Cash available to build if no financing available?
• Location determined?
• Debts paid down?
TEST FOR CLIENTS – outline the square footage of the
tiny home in tape in their current house to see if they could
manage actually living in that small of a space.
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Tiny House Suitability Quiz – Humor!
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The Huffington Post in March 2015 reported a brief story about tiny houses.
In the article is an online quiz from the used-goods exchange company Yerdle.
The quiz attempts to determine if a person is interested in going tiny.
This feature could add some levity to your interactions with clients.
The result could also be a telling statement. Enjoy!
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Steps to Transition to a Tiny House
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• Most tiny house owners pay cash
• Counsel and coach your clients to start saving to either pay cash or gather a large down
payment
• Sell household goods they won’t need in their tiny house to raise funds
• Reduce debt
• Minimize overhead
• Determine needs vs. wants
• Downsize
• Have your clients outlined the square footage of the tiny home in tape in their current house to
see if they could manage actually living in that small of a space
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HUD’s Proposed Rule
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• Posted February 9, 2016 and closed for comments April 11, 2016
• Proposes to revise the exemption for recreational vehicles that are not self-propelled from HUD's Manufactured
Housing Procedural and Enforcement Regulations
• Based on a recommendation adopted by the Manufactured Housing Consensus Committee (MHCC) which
would define a recreational vehicle as one built on a vehicular structure, not certified as a manufactured home,
designed only for recreational use and not as a primary residence or for permanent occupancy
• HUD is adopting the MHCC's recommendation but modifying it to require certification with the updated ANSI
standard, A119.5-15, and by including a requirement that units claiming the ANSI A119.5-15 exemption
prominently display a notice stating that the unit is designed only for recreational use, and not as a primary
residence or permanent dwelling
What does this mean for the tiny houses on wheels movement?http://rvdailyreport.com/industry/why-huds-proposed-rule-redefining-rvs-is-critical/
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How Can Housing Counselors Help their Clients?
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Understand:
The phenomenon of Tiny Houses as an affordable housing solution
The value of thorough coaching and counseling
Resources available to the client
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Tiny House Resources
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• Tiny House Expedition – http://www.tinyhouseexpedition.com/
• American Tiny House Association – http://americantinyhouseassociation.org/
• Tiny House Community – http://tinyhousecommunity.com
• Small House Society – https://smallhousesociety.net/
• Tiny house lending – http://www.tinyhouselending.com/
• Financing a tiny house – http://www.bankrate.com/financing/retirement/financing-a-tiny-house/
• Tiny house building checklist – http://thetinylife.com/ryans-tiny-house/tiny-house-building-checklist/
• Nationwide tiny house listings – http://tinyhouselistings.com/listings/
• Shipping containers as tiny homes – http://www.containerhomeplans.org/2015/06/top-10-tiny-shipping-container-homes/
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Tiny House Resources
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• Tiny house FAQs – http://tinyhousegiantjourney.com/tiny-house-faqs-statistics/
• Tiny house design FAQs – http://www.tinyhousedesign.com/tiny-house-frequently-asked-questions/
• Small house communities by state – http://www.resourcesforlife.com/small-house-society/resources/small-house-
communities
• Map of small house communities by state – http://www.tinyhousecommunity.com/map/communities/
• Tiny house building codes and zoning – http://americantinyhouseassociation.org/building-codes-zoning/
• International Code Council residential code – http://publicecodes.cyberregs.com/icod/irc/2012/index.htm
• Sustainable building codes – http://sustainablebuildingcodes.blogspot.com/2010/11/tiny-house-code-compliance-120-
square.html
• Habitat for Humanity – http://www.habitat.org/
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Tiny House Resources
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• Homeless in Nashville – http://www.theatlantic.com/business/archive/2015/10/tiny-homes-homeless/413212/
• OM Village (Madison, WI) wins over neighborhood critics: http://host.madison.com/wsj/news/local/one-year-in-madison-s-village-of-tiny-
houses-wins/article_6d1a54cc-343a-5775-b3de-5fa341677580.html
• HUD Portland, OR, Field Office’s Study on Tiny House Villages:
http://media.wix.com/ugd/bd125b_211036cceef7432aa1e7108f934db279.pd
• Detroit Tiny Homes community – http://www.upworthy.com/these-unique-tiny-homes-are-designed-to-help-pull-low-income-families-out-of-
poverty?c=upw1&u=34e223565b2435f9ae73de9f0188050aeffa6ded
• Cass Community Social Services tiny homes – https://casscommunity.org/tiny-homes-2/
• Tiny house communities: http://www.lovarehomestead.org and https://austinlivework.com
• Tiny house villages for homeless and resources: http://www.tentcityurbanism.com; and http://www.thevillagecollaborative.net; and
http://www.squareonevillages.org; and http://mlf.org/community-first/, http://occupymadisoninc.com/om-village-2046-e-johnson-st/
• Community Frameworks tiny house white paper – http://www.communityframeworks.org/ws-
main/docs/FINAL%20Tiny%20Homes%20White%20Paper%20March%202015.pdf
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Tiny House Resources
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• AARP tiny house article – http://www.aarp.org/livable-communities/housing/info-2015/tiny-houses-are-becoming-a-big-
deal.html
• Living legally in a tiny house – http://www.timbertrails.tv/How-to-Legally-Live-in-a-Tiny-House and
http://www.tinyhouseexpedition.com/livingtinylegally/
• 84 Lumber and tiny houses – http://www.housingwire.com/articles/36490-tiny-house-trend-now-more-accessible-than-ever-
thanks-to-84-lumber
• Reasons tiny houses will be big – http://www.earth-matters.nl/7/11344/duurzaam-20/tiny-house-movement-is-going-to-be-
big.html
• Millennials and tiny houses – http://www.housingwire.com/articles/36680-millennials-look-at-tiny-homes-as-new-option-for-
homeownership?eid=311691159&bid=1358185
• Top five states for tiny homes – http://www.ecobuildingpulse.com/news/the-top-5-states-for-tiny-homes_o
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Tiny House Resources
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• Tiny house workshops and apprenticeships – http://tinyhousecommunity.com/workshops.htm and
http://tinyhousebuild.com/andrew-morrison-tiny-house-workshops/
• Tiny houses use salvage materials – http://dornob.com/pure-salvage-10-eclectic-tiny-homes-built-with-99-scrap/ and
http://tinytexashouses.com
• Tiny house cost – http://tinyhouseblog.com/tiny-house/how-much-does-a-tiny-house-cost/
• Tumbleweed Tiny House Company cost – http://www.tumbleweedhouses.com/pages/customize-your-
tumbleweed?avad=141345_db18f35e
• DIY tiny house cost example – http://www.diyhousebuilding.com/tiny-house-cost.html
• HUD employee’s tiny house – http://blog.hud.gov/index.php/2012/12/03/hud-employee-and-his-tiny-home-featured-in-
washington-post/
• HUD proposed rule on manufactured housing and RVs – https://www.regulations.gov/#!documentDetail;D=HUD-2016-
0013-0001
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Continued Education Hours
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Upcoming Webinars
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Self-care for Housing Counselors
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Inflight Announcement
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• Helping yourself first is a principle that applies directly to counseling
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2016 is the Year of Setting Goals
Identify your basic GOALS:
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Committing to financial health/savings
Paying down debt
Reducing stress
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Counselor certification
Continued education - training needs
Agency and counselor recognition
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November Tip
Missing Piece in Financial Wellbeing.
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The Tiny Houses Phenomenon –
An Information Session
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