Money Monday$

How’s your sex life? Did you blush a little or spit out your coffee when you read that question? Thought so, but chances are you talk more openly with your friends about your sex life (or lack there-of) than you do about your money (or lack there-of).

Still reading? Great! Because today I'm going to talk about one of my favorite subjects.....me. I mean money, actually me and my money, or is it my money and I (I can never remember. Clearly I was day dreaming during 6th grade grammar class). 

I just finished reading two books related to personal finance.  Nudge, which is actually more of an economics book, discusses the different ways people make decisions about their health, wealth and happiness and how businesses and the government can “nudge” people to make the perceived “best” choice for their 401k, organ donation, eating habits, etc.  Instead of presenting a new employee with 47 confusing choices about their 401K, an employer might have 5 easier to understand options based on the employees predicted retirement year. To encourage participation in a 401K, an employer might have a default system in which the employee will automatically be enrolled in the most conservative 401K investing only a small percentage of their income. The employee can always decide to opt out or to invest more aggressively, if they actively choose.  This same principle can be applied to nutrition in school cafeterias. Put the salads and vegetables first in line instead of the pizza and nachos and students are more inclined to make the healthier choices. Just a couple ways we consumers are "nudged" to make the choices deemed "best" by an authority. Think twice before you pick up that salad! Is that what you REALLY want or is someone else nudging you to eat your veggies besides me?

The other book I just finished, The Millionaire Next Door, is not about how to snag a millionaire spouse unfortunately. Go watch Millionaire Matchmaker for tips about that. The Millionaire Next Door is about the unassuming and not-so-obvious millionaires - the school teachers, firefighters, and small business owner types who live within their means, save, invest and have a net worth of over one million dollars. The authors interviewed many millionaires to find out what they know and what they do that might teach the rest of us a thing or two (or million). The moral of the story is to budget, live within your means, save, invest, and plan. 

Sounds easy, right? Yeah not so much. Dave Ramsey, a personal finance guru, often states that personal money management is "20% knowledge and 80% behavior." I can tell you first hand that this is true. Over the past few years I have developed an interest (some might call it obsession) in personal finance. I am fascinated by people and their money. I cannot seem to read enough about it or have enough conversations about it with willing friends, family and even strangers. Just the mention of money in a conversation will elicit a variety of emotional responses. Some even come across in body language - brows will furrow, arms will cross, shoulders tighten, they might even slap you, or just completely shut down and stop talking. Wow, I don't think people even do that when asked about their sex life.  Which brings me back to my favorite subject.....me. Tune in next week for another edition of Money Monday$ in which I will not talk about sex, but will talk honestly about my struggling, on-going, somewhat abusive relationship with money.

Yours truly,
Po$$
(Pronounced "poe-money-money." It is also my rapper name.)