My Wallet Wisdom Proved Once Again

Conventional Money Wisdom
Is not Always
Wise

Time Magazine featured the story "Why Its Time to Retire the 401(k)" by Stephen Gandel (October 19,2009). Written from the employee point of view, it details how doing what they tell you do financially isn't necessarily in your best interest. Mr. Gandel points out that 401(k) was originally set up 30 years ago as an executive perk - one more way to dodge Uncle Sam. Below are a few of his other revealing statements:

"The ugly truth, though, is that the 401(k) is a lousy idea, a financial flop, a rotten repository for our retirement reserves."

"Even for people who don't have enough money to send their kids to college or buy a house, building their 401(k), they are told, is their first priority."

I have also known of people who would live in their car rather than touch their retirement funds. And I am wondering why anyone should be penalized for accessing their own money should they need it in an emergency.

The writer does go on to point out the positive side of the 401(k) plans. My point is not to bash 401(k) or other plans you may have, but rather for you to understand that what may be a great financial decision for others may not be in your best interest. The good news is that the public is finally questioning what they have accepted as the only truth. To me, that is very good news.

Details, details, details

Maybe you’re one of those people who loves paying attention to money details, saves receipts and knows exactly where and when money is spent without being anal about it. Yes, there are those people who are so attuned to their money details that they border on being obsessive about money. I am not including those types of people when I say that most of us would rather not take time to run down that $10.00 over-charge on our phone bill. Some even give up trying to read those confusing charges on most bills. Paying attention to these and other money details can be annoying, time consuming and irritating especially when waiting on the phone for customer service.

But, and this is a big BUT, if you truly desire wealth and wisdom then get in the habit of paying attention to small bothersome amounts of money. Organizing and respecting the money you have leads to self-trust, and greater self-trust builds the confidence to steward greater amounts of money.

With money management software, it is so easy to take the annoyance out of the details. If you are not already using one of the popular packages such as Quicken or Money, I strongly recommend you buy one immediately. Make use of the many reports, especially the ones that show the categories in which you spend money. It will make your life much easier and give you greater control and understanding of your money details.

You can find more information about how to be current and complete with your financial transactions in Wealthy U – Seven Sacred Wealth & Wisdom Lessons by Marilyn August (available on www.amazon.com or at www.WealthyU.com. For more information about Marilyn August, America's Leading Expert on Mind Over Money, please go to her website or e-mail her direct at marilyn@wealthyu.com.