Physical Therapy For Your Wallet

Ok so here's the situation..

2010-04-06T22:54:00.000-04:00

I know there was an update here earlier but all that has kind of changed. I needed to do a little more organizing before I posted the last update. If you don't know what I am talking about that means I removed it since you've been here last so no worries. There is tons of fun happening mainly in the shape of two new blog spaces. I've decided that this blogging project was either going to get bigger or it was going to be forgotten about so as I say in one of my new spaces..I decided to grow. The two new blogs are broken out into a "professional" and a "general interest". The "professional" can be found at www.financiallydigital.squarespace.com and the "general interest" is www.everythingelse.blogspot.com. Financially Digital is going to be replacing Physical Therapy for Your Wallet in pretty much title alone. I wanted to spread the coverage to include tech, which is also a passion of mine, as well as finance.

I will be leaving this space up for a while as I finish the new space. What I really should have done was pick myself up a copy of Blogging For Dummies sooner so I could have saved myself some headaches. You live and you learn. I'm excited to keep bringing my voice and personal touch to these topics and hopefully you guys are excited to keep reading. So go look around the new places and let me know what you think!!

Cheers!

Oh Nooo Not More Infaltion Garble...

2010-03-17T18:55:00.000-04:00

When you are talking to your friends or are at the dinner table with family can you think of a type of conversation that, regardless of your personal experiences, gets everyone fired up? I’m willing to bet that this is the same kind of conversation that some of you flinch at when you hear the two magical prefacing words; “hypothetically speaking”. Part of the fun and frustration is that there is either no right answer or lots and lots of variables to consider. I have a conversation like that for us today. When the dinner time conversation turns to finance and the economy, inevitably someone is going to bring up inflation. Today I hope to give you some intellectual ammo in the event of an arm chair economist face off. Hypothetically speaking of course.

Today we are going to cover what inflation is, how it’s calculated and its different causes. At the end of today though be sure to check out the link to the Massachusetts specific inflation page from the U.S. Bureau of Labor Statistics. Time to let the variables fly!

Inflation is defined as the increase in the price level for goods and services over time. The biggest tool that the Bureau of Labor Statistics uses to determine the changes in prices levels is the Consumer Price Index or CPI. Think of the CPI as a picnic basket full of goods and services that you, as a consumer, use every day. CPI takes price and weighted use of goods and services data from over 87 urban areas and 27,000 retail and service establishments to track changes in the economy’s price level. Within the CPI are categories that range from housing, rent, and new vehicle purchases all the way to the eggs, milk and bread you use every day. CPI measures price fluctuations as percentage changes from month to month and from fixed points like December 2008 and 1967. What setting points of reference allow economists to do is to find patterns and make conjecture about where inflation has been and where it might go in the future. That conjecture is what the Federal Reserve and the current Administration use to make decisions on fiscal and monetary policy. The CPI gets the data it uses to calculate price changes from the Consumer Expenditure Survey put out by the Bureau of Labor Statistics.

Let’s set up a small example that illustrates inflation at work. If on the news you hear that inflation has gone up 3% in the last year what does that mean for the consumer? Well for starters that $1.00 soda in the grocery store effectively costs $1.03. Inflation reduces the real purchasing power of your dollar, or it takes more dollars to purchase that same good. Inflation is not just about prices going up and I don’t want you to stop reading here and think that it’s all bad either. In fact in a healthy growing economy you need a certain level of inflation so that prices don’t get out of control and that workers all over the country get wages they deserve. Inflation as an economic indicator is used to mediate wages, adjust fixed income streams like Social Security, and affects the cost of your children’s school lunch programs.

There are basically two major economic causes for inflation, a Demand-Pull and a Cost-Push. Keep in mind we are covering the topics in brevity and making assumptions along the way like not considering demand elasticity, substitution, and market competition. When there is a Demand-Pull it implies there is too much money floating around in the economy chasing too few goods. People are willing to spend more for the same goods. When the news talks about worries of the Treasury just printing money or the debate over the effectiveness of stimulus checks being sent out to everyone they are referring to a Demand-Pull concern. The biggest part of that concern is that prices will rise too quickly, which is called hyperinflation, and imagery of an early 20^th Century Germany comes to mind with rapid devaluation of a currency and unimaginable bread lines. On the other side is Cost-Push which has more to do with the costs that companies have to incur in the production of goods and services and the ultimate effect on the price the consumer pays. Here the variables are more in line with resource scarcity like with timber and other natural resources that have inherently fixed amounts of inventory. The taxes on the raw materials imposed by the government and the cost of imports are also factors. Ultimately if the costs of production increase, with no foreseeable substitutes available, then the costs to the consumer will increase which implies inflation.

I hope you are starting to see why there are so many debates over what the causes of inflation at any given time actually are. With that debate goes the debate over what kind of policy should be enacted to address it at any given time as well. It’s a calculation that is much easier to see in hindsight when consumers have made their purchases and suppliers have shipped their goods. As promised take a look at how Massachusetts is doing compared to the rest of the country. If you are still confused give one of my favorite economists and books read, its Naked Economics: Undressing the Dismal Science. I think if you give Charles Wheelan a chance he makes this stuff fun and is extremely well spoken.

Cheers!

Just graduating or just starting? A quick list

2010-03-16T17:03:00.000-04:00

Happy Tuesday!

I was just talking to a friend of mine who is going to be graduating and moving right into his professional role as a pharmacist. He started picking my brain about things he should be thinking about when he graduates so that he doesn't just blow through all of his income. From what I have heard about pharmacists they go from having the income of a part-time working student in college to making upwards of $100k their first year depending on their location. As I was answering those questions I thought it would be a neat idea to post up some bullets just in case anyone else was in the discovering phase of their new financial planning obligations. This too goes for anyone who might not have every thought about getting themselves organized.

1.) Setting up your companies retirement. If your going to work in bigger firm odds are their company's HR department will be tossing lots of folders and packets your way with lots of deadlines. For retirement it's a good idea to at least contribute enough to take advantage of any matching program your firm offers. As far as stock purchase plans, or other stock based incentive programs if you are unsure start small, look for the minimums to participate and as you get more comfortable you can increase your contributions. In the retirement plan you'll have lots of options and without giving any kind of specific recommendations try to diversify using large, mid, and small cap funds as well as a global that way you create some kind of diversity until you can have your in house or personal financial professional take a look.

2.) Your IRA. If you are eligible I would recommend setting up a Roth, there aren't any deductions you can take as you contribute but it grows tax free and for the most part the withdrawals in retirement are also tax free. Under certain situations you can access funds in it before retirement without any tax consequences as well and for more on it check out this IRS publication http://www.irs.gov/pub/irs-pdf/p590.pdf

3.) Automate your savings. If you know you have a few different goals your saving for its ok to have a few different savings accounts. If you want to vacation once a year, buy a home in five years, and a new car in three then have those accounts separate. Right from your paycheck have amounts deposited that you feel will get you to those goals, just set it and forget them. You can do the same for checking accounts and your bills. Having different accounts makes your savings easier to track and honor so that you aren't overspending. When the time comes to buy that first home you know you'll have saved for it and can spend from it worry free. Last note it's a good idea to have at least six months worth of expenses in an account in case of an emergency.

4.) Have fun. After all that is said and done it's ok to go out and spend on the things that make you happy. If you aren't enjoying what you worked so hard to achieve in school or working up the corporate ladder then you will drive yourself nuts thinking about all this stuff. That's the great thing about automation, at the end of it you know exactly what your working with and you'll still cover everything that you have to.

4 1/2.) Credit. Don't be afraid of it. Get a few credit cards and use them. I know, I know you're thinking what kind of planner tells his clients to go out and wrack up crippling credit card debt. That's not what I'm saying at all. Throughout life so much is based on that little credit score number so like working out to get a better body we need to work your credit to get a healthier score. Go out and pick up a few big ticket items and then break out the payments over the year. Don't rush to pay it off. The idea here is that you are demonstrating to credit companies that you are a positive credit risk and that in the future it will be easier for them to extend your credit lines or offer you great mortgage rates. Before you get carried away though you might want to take a look at Credit Card Nation: The Consequences of America's Addiction to Credit. It will scare you straight.

I know I said bullet points but those were more like explanation points. Please also note that things talked about here were in brevity, if you can believe that. It was just to give an idea of some of the things you should start to think about. If you want to know more about anyone thing feel free to shoot me an email or leave a comment. I love the feedback good or bad. And thanks to my friend for sparking that conversation!!

Cheers!

Follow me on Twitter: www.twitter.com/Nunzio_Bruno

Really...really..

2010-03-16T00:18:00.000-04:00

Wow.

I am such a bad blogger. I really do want to make this a better blog and not let it just die. I went back to actually reading about making blogs better and getting to the meat of what I'm passionate about so that I don't let this blog fade away. One of my favorites so far has been Problogger. I picked up ProBlogger: Secrets for Blogging Your Way to a Six-Figure Income and gave it a good read. It's less about making an income blogging like so many bloggers aspire but more about ownership of your content. I believe in spreading financial awareness but I, like everyone else, get so caught up in everyday to-do's that I don't give this blog the love it deserves.

I believe that researching why I've been so bad at this was the first step, a passive aggressive one, but a step none the less. My next action item is to kick this blog into gear again. Wish me luck!

Cheers!

A blast from the past..

2010-01-10T20:23:00.003-05:00

Happy Sunday!

I know, I know..two updates in two days, that is just crazy. I'm really trying to make the effort to bring this back so here I am yet again. Tonight though I think I have a treat for you. What I'm posting is an article that I wrote from my personal finance column for Boston.com. I've been seeing a lot in the news lately about the rise in filings for personal bankruptcy, so I went looking through my articles. Turns out I covered this subject in a Bankruptcy 101 kind of way back on June 29, 2009. Take a look through and I hope you enjoy it..

Cheers!

"Welcome to another, hopefully productive, Tuesday morning. All I can continue to say is thank you to everyone who contributes for your continued support. Today my hopes are to get into something a little more focused and a bit hot buttoned – bankruptcy. It’s been all over the news lately and it’s one of the most requested topics to date. So far the best comment I’ve received on the subject had to do with a concern from a GM vehicle owner wanting to know if he would be able to get his car serviced reading that the company filed for bankruptcy. I proceeded to respond, as quickly as I could, that you can rest assure a company like that isn’t just going to throw in their chips and walk away.

All forms of bankruptcy correspond with chapters in the Internal Revenue Service Bankruptcy Codes and there are six major filings for bankruptcy. The three most talked about filings are Chapters 7, 11 and 13 which we will cover in more depth than the next ones mentioned. The other three are Chapters 9, 12, and 15 and we’ll cover those very quickly now. Chapter 9 has to do with the adjustment and repayment of debts that a municipality is responsible for. Chapter 12 has to do with the adjustments of debts for and protection of family farm and fisherman assets. Last but not least is the Chapter 15 that has to do with insolvencies that stretch across national borders and the process for bankruptcy estates to be settled when there is more than one country involved. Sorry for the rapid fire but I could talk about this stuff for a lot more than the seven hundred-ish word limit that I constantly spill over.

A broad definition for bankruptcy just to set the foundation is; a process that a debtor initiates when they, individual or business, are unable to satisfy financial obligations they are responsible for. It’s not just about getting off the hook for credit you might owe. Something that people might not think about when they enter into bankruptcy proceedings is any debt that may be forgiven or cancelled by the creditor turns into income on the borrowers side which means extra tax liabilities come April 15^th. So on top of the stress to your credit health there may be an extra financial liability by the end of the proceeding.

Chapter 7 paints the picture of the person who may be more than just be down on their luck. What I mean by that is they are unable to satisfy current debts and have no form of regular income, if you make too much you will not qualify for Chapter 7. What happens here is the Chapter 7 filings begin with the courts and a “bankruptcy estate” is created. It’s the job of the court to turn whatever assets they need to into liquid cash and pay the creditors that are owed. There are assets that are exempt from liquidation and they vary by state but some common ones are your Declaration of Homestead, life insurance benefits, and pension funds. Most likely as soon as the proceedings end you are discharged of any debts because your assets sold satisfy them all. After the procedures are concluded the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA of 2005) states eight years must pass before you can file for Chapter 7 proceedings again.

Chapter 13 is along the same lines as Chapter 7 and is often times preferred. In Chapter 13 you have the opportunity to create a plan to repay creditors over a time period. It’s more about debt reduction and court appointed repayment deadlines than it is about straight out liquidation. A trustee may be assigned to your estate by the court but you get to keep control over your assets. It’s up to the court to decide whether your plan meets the Chapter 13 requirements and can make changes to it depending on your situation. Unlike Chapter 7 though you aren’t cleared until the proceedings are through, meaning you aren’t discharged of the debts until your planned repayments are finished. While the plan is in effect you are protected from further actions that creditors may seek otherwise, i.e. lawsuits and further garnishment of wages. Time between filings here are four years by the BAPCPA of 2005.

The big one in the news is Chapter 11. What happens here is under court supervision businesses are allowed the opportunity to create a plan similar to what the individual does in Chapter 13. Businesses have the chance to cancel contracts, sell assets, and restructure corporately to repay debts owed. The goal for a business here is to come out still in business and making profits again. The courts are very much involved and have the ultimate say on the details of a plan. So in GM’s case the very-important-people not arriving in a private jet makes a good impression on the courts.

That in an, abbreviated, nutshell is the difference between the different kinds of bankruptcies out there. In the articles to come I’ll try to break them out better individually, so we can really sink into the demystification of bankruptcy. If it’s something you’re considering or just want to learn more about in the mean time, IRS Publication 908 of 03/2009 is a good starting point found at www.irs.gov. My hope is at the very least is I was able to bring up some talking points about a word that’s clouded in propaganda and fear by the media and by people who might not know the differences out there. I’m sure the farm families that get to keep their farmsteads in bad times can appreciate it so it’s not all bad right?

Cheers!"

New Year, New Me. Well same me but...

2010-01-09T17:52:00.004-05:00

Happy Saturday Evening!

It's that time again; a little over a week into the New Year. How are those resolutions holding out? Still rolling strong or still the same wishful thinking from a week before January 1, 2010? Now about this time last year I posted about conducting your financial physical and you can check that post out if you scroll down a ways. I'm not here now to just rehash that subject but it still very much applies, a financial physical is something everyone should get in the habit of doing.

Something quick that I wanted to vent about while it was still fresh in my overcrowded head space was more along the lines of goal setting and tracking. I am constantly learning new ways to trick myself through these little mental hurdles that from an objective rational point of view should be non-issues to start with. My tribulations run from projects I'm working on (like this blog) to even staying motivated at the gym (which was not part of my personal resolutions because I'm a gym rat already). I know I'm not the only one out there that has these problems and I even coach people to get over their financial hurdles all the time. If you were looking for an excuse to get going or stop procrastinating here is the excuse. It's still really early in 2010 so get started. It doesn't matter where you are now financially the point is to pick your tracking medium and start. One of my favorites is still Mint.com, it will give you an instant gut check provided you keep honest with it. If you're more old school your spread sheet of choice or even good old pen and paper will suffice.

Set a real, reachable, track-able, tangible goal. If it's a savings number, a return for a portfolio, or even just to number that you want to work your discretionary spending down to just set it. If you're visual like me make some kind of graphical way to track it. I'm still a fan of coloring so I make little thermometers that I can color in as I go along which in itself is gratifying. Create a plan for yourself and write it down somewhere. Every week take a look at it and make sure that your actions for the week are reinforcing your efforts to reach your goal. Let someone else read it and give them a copy so they can hold you accountable, make sure it's someone you trust handing over your personal financial goals over to. Then at the end set up a little reward for yourself so that not only did you reach the goal that you set for yourself you also threw a little kicker in there. An example would be taking a savings goal, increasing the base by 5% and then using that extra to treat yourself at the end. It sounds really fundamental but you'd be surprised at how many people drag their feet or let their resolutions fall to the wayside. Own it people!!

Now I'm no authority on keeping people motivated, nor am a goal crushing guru, I just know what works for the people I work with and myself. So if you swing by this post and read my little rant hopefully it just gave you the little mental push to get started and if I failed to motivate then do what you need to do to get motivated!! Just trying to plant the seed here. Stay tuned for some meatier content as my resolution is to resurrect my little pet project here and bring some substance back.

Cheers!

I must be a magician..

2009-08-20T16:28:00.002-04:00

So it looks like I have a good handle on the whole vanishing writer act. I know that it's been a very long time since my last post, but I'm back. Lots of transition, including a brand new living situation, which is always exciting. I hope to get back on to the posting at least once every couple of days...I have to bring this thing back to life.

Thanks and see you soon!

First Guest Columnist!

2009-06-21T20:18:00.002-04:00

Good Sunday Evening!

This post is from a good friend of mine who happens to be one of the tech savviest people I know. Enjoy!!

"Gadgets"

If this is Physical Therapy for your Wallet, I would be the guy with the Palm in his pocket where the wallet should be while I keep my money in a jacket pocket. It’s not that I really NEED a Palm, or that I’d use it on a daily basis but like most technophiles and business mobile people it’s a great gadget. Unfortunately, it’s also the reason for today’s guest article.

Technology is a wonderful thing, as you probably know since you’re on it right now. It’s also a terrible distraction and a large money sink for businesses. Many of them spend so much money trying to be productive that they don’t realize where all the money went. Take my ‘fictional’ Palm for example.

When I worked for a six-building fiber optic network I used my Palm on a daily basis. I’d be lost without it. From the app with serial and product numbers to the day-to-day schedule it was an invaluable tool which made life easier. I made the mistake of buying one for myself when I went into my next employment. Here I was only working on databases for a single corporation. It had multiple buildings but I only worked out of one. My desktop held all of my vital work and my Palm became the most expensive paperweight in the office.

I’m sure the folks at the Franklin-Covey don’t want you to think like this but Planners are for people who PLAN. Mobile devices are for MOBILE people. If you’re in your office 365 days a year and you don’t handle your own scheduling, why are you buying a $700 mobile device with a 500 person contact list and scheduler? How many of you even HAVE 500 contacts?

When you go to buy your next business PC, think about where it will be used. One place or many? Do you really need a laptop? Do you need that ultra-light-super-portable-the-motherboard-must-be-made-of-gold-for-what-this-thing-costs netbook? Most people will say probably not. Most people I know who do use laptops ‘For the convenience’ end up using them to play solitaire on planes. Very few have actually even attempted to do work on their work laptop while the kid behind them was kicking their seat.

It’s not just laptops and desktops either. Look at the system specs before you buy. Most websites have sections for ‘Business’ and ‘Gaming’ computers. There is a reason for this. I’ve watched administrators buy gaming machines with more power than we used to send a man to the moon so that they can check their e-mail and write word documents. Know what you need, Get what you need. If you’re confused about the technology ask the sales rep. The first question that they should ask you is “Where will your computer be used?”. If they’re trying to sell you the latest-and-greatest machine before finding out what you’re using it for, politely excuse yourself and find a different sales rep.

Programs and operating systems also fall victim to the classic ‘gadget’ syndrome. Within a year we should be seeing Windows 7 come out. It’s a great operating system which has many of the bells, whistles, and doo-dads (highly technical term) that make a OS attractive to your local IT guy. Thankfully most IT guys need to come to a CFO or CIO before they can invest the money switching people over. If your office doesn’t use these checks and balances BE WARNED. Early adoption of ‘cool’ technology isn’t recommended for businesses. Microsoft might disagree but they also are known to put out a service pack or two within a year of putting out a new operating system. Let someone else find the critical security flaws, focus on your business and let your technology be a tool that makes it easier, not something that weighs you down.

Know what you need, don’t buy bells and whistles; buy what fits your needs.
Mobile devices are for Mobile people.
When buying, most places will sell you either a ‘good, better, best’ model. Skip the ‘best’ and look at the ‘better’ model first. It will last long enough for your standard 3-year obsolescence model while still being friendly to your accountants.
When in doubt, give yourself a week. Imagine how many times you would use a gadget over the course of a week to justify it.
Be patient with new technology. New isn’t always better, it’s just newer. Good practice is for a business to wait a six month minimum before considering a technology investment on a new technology.

Shawn is a Microsoft Certified Systems Engineer with ten years experience in purchasing, accounting and information technology. He wrote this article in Word on his Alienware gaming desktop.

eHow.com

2009-06-11T21:38:00.002-04:00

So I have been just turned on to eHow.com. It's an online community where people post step by step instructions on pretty much anything you can think of. I myself am trying my hand at this and I just finished my first How-To.

http://www.ehow.com/how_5086533_become-active-member-new-community.html

For me this one was easy because it's pretty much what I did when I moved to the Waltham Community. So if you're wondering how this fits into financial well being I ask you to think of this. With a lot of these non-profits there is a time and a monetary commitment. If you're looking to do some good and increase your the deductions you take on your income giving to a group that you're committed to isn't a bad way to go.

As far as blog updates I should have some guest articles appearing here very soon by some of my favorites. Along with that I'll have some new pieces of my own to boot and we'll see how financial planning fits into a step by step process...will certainly be interesting.

Thanks and welcome to all the new viewers too! As always comments/questions/concerns are always welcome!!

Another quick link!

2009-06-10T15:19:00.003-04:00

Hello out there!!

This is just another quick note sharing this weeks article for Boston.com!

Check it out let and let me know what you think! As always questions and comments are encouraged. I need your help to make this better!

Cheers!

http://www.boston.com/yourtown/news/waltham/2009/06/by_nunzio_bruno_guest_columnis_1.html

Link to last weeks article!

2009-06-08T18:33:00.001-04:00

Ok so I decided to link it rather than re-post it. I think that's in better taste don't you?

Here's the link: http://www.boston.com/yourtown/news/waltham/2009/06/bruno_physical_therapy_for_you.html

Cheers again!

Wow so many new views!

2009-06-08T18:26:00.003-04:00

I'm so excited these days! My second article will be out tomorrow on www.boston.com/yourtown/waltham so check it out. I have turned the title of the blog here into a running series title there. Just in case the one or two of you, Nick included, that check regularly this is going to be a sister spot to my newly carved place at boston.com. I really want this to work because I think there is a lot of ground to cover and when you can read it in a familiar voice it's always a good thing.

One interesting thing I would like people to think about, loosely based on a conversation that may or may not have happened today, is what people's thoughts are about Saturn et al. being bought out by Penske? Now I have been informed that the only things not being acquired are the manufacturing capabilities which essentially means they are then being outsourced. I'm thinking this might be an interesting way to come at car brand from a business prospective. I am more curious about what everyone else thinks out there and if they can help me get better informed about it. I am going to post last weeks article here to boot just incase we have an lifers here that missed it on boston.com. Some how I doubt that....

As always I look forward to questions/comments/concerns so don't be shy!!

Cheers!

Google's AdSense

2009-04-05T19:47:00.002-04:00

Hello again everybody!

Just wanted to throw a quick note to inform that I just signed up for AdSense. I'm testing to see how feasible it will be for the blog. If it just ends up cheesing it up to much and getting in the way I'm OK with cutting it out.

Hope it doesn't throw your Blogging experience off too much and if it does let me know!!

Thanks!

Who doesn't love jumping on a band wagon!

2009-04-05T18:02:00.002-04:00

Happy end to the weekend everyone!

This post is going to be, for the most part, a push for jumping on the being-an-advocate-for-savings band wagon. I think the time is appropriate these days for an organized and proactive message to be spread when it's now something that can't be swept under the rug any more.

So to start there are lots of great websites out there, including one that I was introduced to this weekend, that are geared to make people better savers, or at the very least aware that they should be better savers. To those that are reading this and saying to themselves that they are already great savers than think of this as a place where you can point to friends and family and add one more I told you so to the pile. (There's always new things to learn though.) The range of resources out there to help coach the masses through savings are amazing and run the spectrum from super celebrity Suze Orman all the way to do it yourself websites. Now a cautionary note. Not everyone out there is like Suze Orman or on a much smaller scale your friendly net-neighborhood financial planner so before ever entering some very personal account information be sure to do your homework. Lots of scammers trying to fish for information.

A quick list of my new top three super motivated saver strategists:
1.) http://www.suzeorman.com
2.) http://www.iwillteachyoutoberich.com
3.) For the DIY's out there http://www.mint.com (Thanks Nick for the intro to Mint!)

They all have their own blogs and tons of information that should get you excited. Again at the very least you may pick up a new tip or trick and get a different point of view for you to mull on. Which in the business of making yourself financially stable is never a bad thing.

For me in practice as well as in research there are a few common themes that you'll see at any good source for financial coaching information about savings.

- Have a plan and hold yourself accountable! Like a fad diet if you don't hold yourself to it then there's not really any point in putting the effort into the plan at all. You have to want the change (literally and figuratively). It can start with an easy budget, a place where you can mark and track your progress from.
- Automate when ever you can! I know that Bank of America has that neat "Save the Change" program and it's only a few cents on every dollar but it's still one more automation. Setting up separate accounts that you save to systematically will take the sting out of the savings process.
- Be focused! If you have different goals and time horizons, saving for them separately instead of in one big slush "savings" account will help you get there more efficiently.
- As an armchair economist I have to throw in the substitution concept. If coffee is in your morning routine I'm not the guy to tell you to stop cold turkey. A long term habit or system you have for yourself won't break overnight and you wont marry yourself to a plan if it involves a drastic change like that. So look for a less expensive substitute or make it at home. If you save a portion of what your morning expenses are and save only that much everyday you'll be pretty surprised at what you can accomplish in a year on just the act of saving and you'll want to do more.

Those are just a few points that I like to stress and there are tons more even in just the websites I liked and shared. When your taking a look at your whole financial picture savings is really your foundation and starting point. After you find a system that works for you and you've started to save then all the rest of that other financial "stuff" gets to be really easy. Fun too! I think anyways..

This about wraps up my jump on the band wagon session. There's always a need for savings and I think that it's great that people are taking it a bit more seriously as well as the competition it inspires in people like me to keep it creative and interesting for you!

Happy start to the week!

I knew life was full of changes but...

2009-03-18T21:54:00.002-04:00

I knew life was full of changes but when my life got thrown for a loop in a matter of weeks it really gives you a chance to take stock and make some choices. So that said at this point my life is still tumbling in said thrown loop but I have an idea of which way it's rolling so I can prepare...I think. I know that there has not been a post in a while and the few articles I am working on are all "in progress" so nothing of substance here other than another appeal to authority that I am going to get this blog to be the resource I want it to be, eventually.

One thing that kills me is there is so much fodder floating out in the aether of financial news that needs clarification and I haven't made the time to do it here. I hope at this point that I can get something of substance in here before this recessionary period ends.

Now keeping in mind I'm trying to be as objective as possible here maybe a little sarcastic:

A quick note though, watched/listened to the AIG proceedings today and I have to say I was very impressed with the current leadership. I was also very disappointed at the rantings of various politicians using buzzwords and scare tactics to over antagonize the situation that AIG is in. Now I'm not condoning or advocating for what happened or is allegedly happening but I have to give credit to Edward Liddy for being professional and well prepared for is House committee meeting. There is no way that the House committee could be experts at the intricacies of corporate finance so that means they are only as good as the research and notes they are provided. Now I know that at the end of the day the House and all "elected officials" are only looking out for the best interest of those they represent and I absolutely embrace and respect that in the most altruistic way but trying to bully a man in a court room who has only been in a position since last September over the tribulations that have been ongoing for years...kind of looks like they (House) were looking to stir up some pitch forks from the common folk.

Is that appropriate, maybe. Did Liddy dance around some questions, possibly. All I'm saying is that it was great to watch, interesting to analyze, and provided lots to think about with respect to moral hazard and who it applies to. Who says the news can't be entertaining!

First Month '09

2009-02-03T14:52:00.002-05:00

Hmmm...

Where to begin? For the few people that actually see this I just want to say thanks for the support. I want this to not be a hockey place where ideas are regurgitated. I'm shooting for a more NPR-esque Doogie theme. This is just a quick post to check in with the few that are following me here and see how the whole New Year Resolution situation is treating you. I want to just make sure that if you do have advisors or planners and they aren't me that you have had a financial check-up and made any adjustments if you needed to...or just to scold you if you haven't been hitting the gym like you said you wanted.

If not it's ok. We are only one month in and markets are still just as volatile, so there's lots of time to evaluate as long as your time horizon is still off in the distance. If it's not then you, the client, might want to be a little more proactive in capturing the attention of your trusted family advisor. (Even if you feel like you shouldn't have to be.)

I apologize for the brevity but I'm working on an annuity article that should be up in a day or two. As always feel free to leave comments or shoot an email to let me know what your thoughts are about how your New Year is treating you.

Cheers!

Time for your check-up!

2009-01-06T15:49:00.000-05:00

Welcome to the New Year!

It's full of hope, wonder, and resolutions..at least out of the New Year Gate anyway. Wonder wains, hope hopefully lasts but usually resolutions fade. One thing that everyone out there in TV land should seriously consider, whether you think you are financially healthy or not, is a financial physical. For all of those do-it-yourselfers out there you'll probably see this blog and scoff thinking that your Bank/Broker proprietary graphs and trend lines are all you need to stay on course but I urge everyone, the DIY's especially, to get a first or second opinion.

Allow me to explain. When I say check-up I don't just mean an evaluation of your savings or how much any current investments have or have not yielded. This should be the time of year where people reassess goals or set goals for the first time for that matter. Regardless of where markets are, because they will always change, it's important that any plan that you have stays consistent and held to a certain amount of accountability. Most importantly like in any business it's important to find out what hasn't worked, and again I don't mean that you made a bad bet in the markets, assess why and make the changes accordingly. Everyone has reasons why the things they plan don't work out and I'll be the first one to tell you what I've planned that hasn't worked out for me but it's not for lack of good intent or thoughtfulness it's because of lack of follow through and a system.

If rebalancing a portfolio is something that is on that list then now is the time to do something about it, especially as tax time silently creeps up on everyone. Maybe getting more serious about your savings or starting to save. A good doctor doesn't just check your heart beat and blood pressure and send you on your way. He talks to you to try to get a handle on all the things going on in your life so that he can best diagnose and treat should he find something that's off. Investments and savings are great but they aren't the only measures of success. While reading this you should be thinking about how your debts are being handled, how the retirement plan at work going, and how protected i.e. life insurance is your family should anything happen to you if your the breadwinner (and even if your not). A good financial check up will take all these things into consideration and a good plan will incorporate many levels of success.

Now there isn't anything in here that's revolutionary or an idea that someone hasn't already thought of but that's the point. Things worth saying should be repeated until those listening finally get the message and act. Even if you think that nothing in here is worth your time or applies to you I urge you to just take a few minutes and reflect. I'm sure everyone has things they wish they did better and if you find something do something about it. Write it down and track it, add accountability.

As always feed back is appreciated and hopefully this little New Year Note added to a few guilty consciences and someone acts.

Thanks!

Where have I been?

2008-12-11T18:05:00.000-05:00

This is just a precursory update to an updated entry. I know that I've been MIA for all two people that have seen this blog but I am back and on top of it. There should be a new entry with some substance to it coming within 24hrs. Thanks for your patience Sal and other person who've to date read what I have written...

Cheers!

Need more Questions!

2008-08-19T16:25:00.001-04:00

I know that people are checking out the blog but there are not enough questions coming in!! Please post what there might be the slightest inkling of curiosity about. I'm very excited to start replying but I don't want to run out of things to talk about too fast and then have this become stale.

I ask those bright eyed and web-readers out there to put your thinking caps on and chime in!

Thanks!!