Automation, The Key to Saving!

The simplest way to save money is not to spend it. That statement seems pretty obvious, right? The challenge to us mere mortals (as opposed to the folks who write for magazines devoted to this topic) is that it presumes we will take our paycheck and apportion a part of it to a savings account. Unfortunately, the mere mortal is not so rational. He is much better at short-term happiness than long-term planning. Given the choice of spending or saving he almost always opts for the former. So, what to do?


Enter Automation, the key to saving! Automation is the little cousin of Direct Deposit. With DD, your paycheck moves from your employer's hands into a personal bank account where you can write checks to pay bills and so much more. This same concept can be taken one important step further and it's a very important step, indeed. Here's what my wife and I are doing with our money since we automated our savings. This takes all of about one hour from start to finish:

• First, we set-up four online savings accounts with ING. We gave them names like household, automobile, personal loan and vacation. Each of these accounts receives a monthly deposit from our personal checking account. Money in an online account typically makes a higher interest rate and it's a little more difficult to get to your money – which I think is good!
• A year ago, we set-up two other accounts with ING, one labeled "Scott" and another "Beth". These are for our personal use, meaning I can spend money on ITunes or a ukulele without disturbing the family money. The goal here is to stop those delightful financial arguments before they can start!
• Lastly, we set-up an automatic deposit for our IRA. Just like the above examples, a pre-determined deposit moves from personal checking into our TD Waterhouse account.

There are as many ways to use automation as there are needs and wants, so sit down and make a list of what you often find yourself NOT having enough money for every year. For example, are you always short at Christmas? When it comes time to replacing your car? With automation, you are taking the time tested "envelope technique" and using today's technology to keep it out of reach and there for you when you need it. Good luck!

Gratitude is Wealth

I am inspired to share this with you who might be scared @ money and for those of us who may need perspective.

Watch "TEDxSF - Louie Schwartzberg - Gratitude" on YouTube

T.A.L.K.S. – A Valuable Investment

I am reading a wonderful book about money and children called, Yes You Can! Raise Financially Aware Kids, by Jack Jonathan. Below is an excerpt you parents and educators might find interesting. As usual, I'd love to hear your thoughts and feelings about this topic!


TALK IS VALUABLE AND A GREAT INVESTMENT

Many parents agree that talking about money is easier than talking about sex with their kids. It just doesn't occur to parents to talk about money. We are too busy, we don't want to worry our kids, and we really don't know what to say or when to say it. The trick is to make it fun, energizing and interesting to discuss money with your kids. Your conversations can benefit them now and in the future.

The good news is that kids are curious about money. Wouldn't it be a great start to tell them what you're doing with your money?


Talk to your kids about money as early as possible. Even letting your children feel or pay for something with a dollar bill will help to give them the idea that those green things in their parent's wallets mean something.

Act casually. Money is just another conversational topic, such as sports, the weekly schedule or what's for dinner.


Leave money in its proper place. Don't let it dominate your value system.


Know your audience. Direct your conversation about money to each child's age and interest. Draw them into a talk about money in a way that is meaningful to them. Use stories from your own life.


Sprinkle questions throughout your conversation and listen carefully to the answers. Everyone loves attention. Your questions and attentive listening give your children a sense of acceptance and deepens your family bond.

Don't Worry @ Money Today. Watch This!

Watch "Billy Eichner : Man on the Street" on YouTube

Stay Tuned

I am studying and listening a lot so that I can make some really important financial changes in 2012. As part of my plan, I intend to blog about my progress and my discoveries, especially when I find ideas that are not being covered elsewhere.

Of particular interest to me is the zone where the financial and the psychological meet. In my view, there exists a big, underdeveloped gap between those of us who are wrecks when it comes to managing money and those who read the Wall Street Journal for fun.

If you would like to explore the possibility of moving from your financial childhood to a more adult way of being with money, stick with me.

Ten Tips for the Holidays

1. Make your presence more valuable than your presents.
   
2. Passing on your values is more important than passing on valuable things.
   
3. Bake more than you take.
   
4. May you share all of the gifts of your heart and less of the cash in your wallet.
   
5. Make a note on your 2012 calendar to start a holiday savings plan beginning in January.
   
6. Forgive an old hurt and allow love to fill the space where resentment has grown. Call that person!
   
7. Help someone at home or work do their chore or job without expecting anything in return.
   
8. Broaden your knowledge and tolerance by searching online for the story behind a holiday that's not yours.
   
9. Read aloud with your beloved a story, some poetry or quotes pertaining to the holiday season.
   
10. When you tip someone, write a note or tell them why they are important to you.

Dad's First Shopping Lesson

My 17 year old daughter recently took my advice on the subject of finding deals in a clothing store. I said, "When you come into the store look for the sale signs. And if you can find something you like in that area, get it and go. " My daughter doesn't listen to me about much, but I have made her a bargain hunter.

Of course, most of the items on a sales rack are there because they are ugly. When I was 17, I spent many an afternoon browsing record albums in the discount bin. You have to look at lots and lots of junk before finding the diamond in the rough. But I always hoped that the next rack might contain a looked over deal. And every now and then, I struck gold.

Hunting for bargains is a mindset. It prevents you from paying full price for ANYTHING. Try it and you'll see: it's like a treasure hunt.