Hiding Money Round Up and Uncommon Money News
|October 5, 2010||Posted by Roshawn Watson under Uncategorized|
By: Roshawn Watson
Last week, I came across a very interesting post from J. Money of Budgets are Sexy entitled Hide Your Money From Yourself (link below). The premise is 1)to create distance between yourself and access to your money thereby decreasing the likelihood of spending it and 2)to fund this “distant” account automatically, so that it grows effortlessly.
This strategy is simple enough to employ by opening an online savings account, and it has personally served me well. I initially opened online accounts because they provided superior interest rates compared to brick-and-mortar banks. However, after using them for a while, I found that they also protected me from me!
These accounts force you to be disciplined, which is vitally necessary if you are not a natural saver and investor. Here is why. If your household makes the median income of $50,000 per year for 30 years (age 35-65), your household will gross approximately $1.5 million. Given this fact, it is particularly disturbing to work your entire lifetime and have little to nothing to show for it. A reality is that many of the elderly cannot write a $5,000 check. Lack of financial discipline (poor money management skills) is also one of the five primary reasons I believe that causes lottery winners to go broke. While people love quoting the profound advice from George Classen’s book The Richest Man in Babylon, “Pay Yourself First,” I wonder how many actually practice it continuously. The problem with paying yourself last is that for some people, there is little to nothing left unless you make your goals a priority. Additionally, restricting your access to your money also helps you avoid (or at least delay) “dipping into savings.”
In short, if you can use some more discipline with your finances, consider implementing this strategy.
Thought Question: Do You Hide Money From Yourself?
Now, it’s time to do the weekly Uncommon Money News and Yakezie Round Up.
Uncommon Money News and Yakezie Round Up
In preparing to write my posts, I often come across noteworthy and sometimes bizarre financial and business news. Below are links to some of these sites. Enjoy!
To my readers: I am so honored by your support. Together, we are telling thousands of the importance of financial literacy. I absolutely could not do it without you: you are vital! Thank you sincerely.
Personal Finance (Yakezie and other PF bloggers)
The End of Free Markets: A Great Reason to Buy Stocks at Balance Junkie – 2 cents argues that now is a great time to buy stock. She gives her rationale, but do you believe her?
How to Allocate a Second Income at Everyday Tips and Thoughts – Kris ponders what to do with an unexpected second income. The comments are pretty interesting too: you can see the disparity in risk aversion clearly by the answers.
Do We Incur Debt Through Our Childhood? at Squirrelers – Squirrelers discusses whether we incur an ethical and financial debt to our parents. I commented on the cultural dynamic of such a provocative question.
The Curse Of The Accidental Millionaire at Money Reasons – He recalls the tragic story of his friend who was very income affluent but never converted that income into wealth: very sad indeed.
Super Freakonomics at Joe Taxpayer – Joe reviews this insanely popular book.
Hide Your Money From Yourself at Budgets Are Sexy– I hide money from myself with online savings accounts, and so do most of J Money’s readers. If you want to read an example of just how powerful and extreme this strategy can be, this is a good and quick read.
College Kids Who Made Millions
Investing and Economy
Is Global Debt a Ticking Bomb
The Great Tax Debate: Ben Stein versus Linda McGibney at Biz of Life – He gives a very interesting proposition to all of the wealthy billionaires supporting increased taxes.
Entertainment Money News
Offbeat Money News
Toxic Friends – Non-Reciprocal Takers at Invest It Wisely – Some people will always be takers.
My Guest Posts
- Thanks to Jason White (Frugal Dad) for publishing my article: Radical Thoughts About Our Culture of Debt
- Thanks to Nickel (Five Cent Nickel) for publishing my article: Winning The Lottery Won’t Fix Your Finances
- Carnival of Financial Planning at The Skilled Investor– Why Is Debt Really Decreasing? and Economists Blame ME for the Slow Recovery
- Your Financial Independence Carnival at Ditch The Boss –Is Extreme Frugality For You?
- Yakezie Carnival at Personal Finance By The Book – Why Do We Save Anyway?
- Carnival of Personal Finance at US News and World Report – Will Mortgage Rates Really Drop to 0 percent?
- Festival of Frugality at Before You Invest – When is Paying Down Your Mortgage a Bad Idea?
Round ups that linked to posts from this site
- Kevin at Invest it Wisely–Weekend Round Up – Six Month Anniversary Edition
- Kris at Everyday Tips and Thoughts – Round Up – Time To Do some Reading
- Adrian at 7 Million 7 Years – Millionaires Aren’t Rich
- Mich at Beating The Index – Weekend Edition: China’s Economy Soars
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.