Posts Tagged ‘savings’

"PAD" Your Savings: It Should be "Planned, Automatic and Done!"

Monday, January 18th, 2010

Saving money, is not done just for the sake of saving.  To be most successful, develop a goal and plan.

In medicine we develop a treatment plan or guide.   If the diagnosis is heart failure  then doing a chest x-ray, blood gas, give diuretics and so on…..,

As circumstances and facts change, then adjust the treatment plan.

What happens in cases where there is no plan? Here is an example:

You have three doc’s consulting on the case, they all write conflicting orders, the nurses have no idea who is in charge.  At best, the remarkable being that made the human body comes through and the patient gets well anyway.  At worst, an injury or event occurs that slows down  progress-drug- drug interaction, allergy, or infection occurs. Frugal lawyers get involved….Makes me shudder to think about it.

So how does that compare to your personal finance and savings.  Those that have a plan, and direction will always win.  Doesn’t mean bumps in the road don’t occur, but you have plans in place to deal with them.

So what do I want you to do about the Savings part of your personal finances:

  1. Determine what your savings needs are-home down payment, car upgrade, new tires,  or retirement.
  2. Make sure your emergency fund is in place. See this post about my recommended Super-Duper Emergency Fund.
  3. Once you determine the need then decide on how fast you can meet the goal-10 bucks a week or 100 bucks a month.
  4. Make your savings automatic: your 401-k is usually painless, because it comes out without your thinking about it.  So do the same with all your savings-have the amounts you choose drafted right after you get paid, to the right accounts or sub accounts.
  5. Review every three months for adjustments.  If you gradually increase your savings rate, it is much easier to reach goals, without everyone in the family having a heart attack-”What do you mean, I can’t go to Old Navy this weekend?”

So go “PAD” your savings-”Planned, Automatic, and Done!”

Housekeeping:

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Posted in Retirement savings, goal setting | No Comments »

Saving Money: How to Teach Your Kids to be Millionaire Nurses!

Wednesday, January 6th, 2010

The savings rate in our country became positive in 2009 for the first time in years.  This means we actually spent less than we earned as a society.  It only took the worst recession since the great depression of the 30′s, and double-digit unemployment as our slap to the back of our head. (You NCIS fans know about slaps to the back of the head).

So now folks are scrambling to learn how to live on less than they make, and save for a rainy day.

So how do we keep this trend going, especially after the pain of this recession fades from our collective memory.

One way is to teach our kids the benefits of saving, and learning about the benefits of compound interest.  One Website that is designed to help is  “Three Jars”.  The theory here is that money given to kids, such as allowance or money for chores is submitted electronically to the Three Jars site.  The money is then divided into savings-50%, spending-40%, and giving-10%.

The spending money is available for the kids to use either with cash or card.  There is an option for the savings part of the account to earn interest.  The site is kid friendly, allowing them to check balances and to learn about money.  Now there is a charge of 30 bucks per family for the service.

The money in the giving jar is available to send to the charity of your choice or one of several national charities that are accessible through the site.

Now for you thrifty folks, can you do the same with a little effort, without going online, and paying thirty bucks?   Of course, but whether you spend the amount of time it takes to teach the kids about money, will be up to you.  And thirty bucks a year seems reasonable for the lessons learned.  And we all know kids are more motivated by a computer screen than a piggy bank….

So what are your thoughts?  Did you get an allowance?  If so, were you encouraged to save part?  Were you encouraged to give to charity?  And if you have used, or know someone who has used Three Jars, let us here from you.

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Posted in Quality of Life, Uncategorized, personal finance | 4 Comments »

Blood From a Turnip:The Millionaire Nurse Way!

Wednesday, December 30th, 2009

How do you get blood from a turnip?  Is that just a southern saying?  You folks out there in other parts of the country let me know.

That’s what old folks say around here when something is difficult (nigh on to impossible) is another similar saying, but, I digress.

Today I want to discuss what to do when you plan your spending, trying to follow my advice, and your money runs out before your month does.

“Dr Dean, I have looked and looked and I don’t know anywhere else I can cut my spending, this planned spending stuff just doesn’t work for me!”

“Well let’s see what we have here.”  (Rustling of papers, clearing of throat….)

  • Smart phone bill for you and your spouse $200/month.  RESPONSE: (I have to stay in touch!)
  • Satellite (HDTV package) TV (you can substitute cable) with 4 premium movie channels, TIVO,  and NFL everything (premier league for you soccer moms). $90/month. RESPONSE: (Why watch tv, if you don’t have hdtv.
  • Lunch-$260/month for two. RESPONSE: (I don’t have time to make a peanut butter and jelly sandwich for two.)
  • 52 inch hi-def 1080 dpi- payment $150/month. RESPONSE:  (NFL package without HDTV-that would be a waste of money!)
  • i-tunes download for two $50/month.  RESPONSE: (but that is only 25 songs apiece)
  • 2 car payments bought new  $1,000/month. RESPONSE:  (but we got a great deal, cash for clunkers and everything!)

There are truly poor people in this country, trying hard to just get food on the table.  I have no patience, however, for people who feel as if their life would stop if they couldn’t text their crew, with white buds in their ears, bobbing and weaving to a beat only they hear.

Then at the end of the month they wonder why the check for the power bill bounced and their electricity was cut off-”Don’t those idiots at city hall have a heart-we have a baby here!”

If you are having trouble paying your bills, “Man Up” as they say.  You can do without the pedicure, the texting on the phone, the lunch’s with your friends, the satellite tv.  You could drive a “clunker” for a while until you pay-off your debts!

Just like an alcoholic, admit you have a spending problem, and vow to 12 step your way to recovery.

Your family life and marriage, I guarantee, would benefit from:

  • less tv and more talk,
  • less texting and more reading.
  • Less i-tunes and more sex (yes-make your own music!)
  • Less fast food, and more left-overs.

So quit making excuses, and make a plan instead.  Get your scalpel out and cut down or out  your unnecessary expenses so that you are not living on the financial edge (precipice- for you English snobs).

And if you need help, suggestions, brow-beating, that is what we are here for.

And remember, if you need “Emergency Money Resuscitation” click this link.  It will get you a free e-book along with a mini-course, delivered right to your email, on personal finance.

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Posted in Planned spending aka budget | No Comments »

Saving Money-Today!

Monday, November 9th, 2009

The most common comment, when I suggest starting on the path to financial freedom is “Save Money, I can barely pay my bills, how can I save any money!”

I then ask the following questions:

  • Do you have a financial plan or goal for where you want to be next year or 5 years from now in regards to your savings, debt and overall finances?
  • Do you  know your net worth?
  • Do you plan your spending, and know where your hard-earned money is going this month?
  • Do you know what your family is spending your money on?
  • Do you shop without a list or plan?
  • Are you using credit cards to “get you by”?

These are just a few of the questions that help to confirm the lack of planning your finances.  To be able to “Save Money” you must have a plan to “save money”.  It will never just happen by accident.

So check back with us over the next few weeks as we try to get back to basics of planning, and saving.

Your life will be much less stressful, which means you will be happier, as will those around you.

And remember, if you need “Emergency Money Resuscitation” check out my new e-book at www.themillionairenurse.com.  And please send your friends and co-workers to this blog and my home website so we can answer their questions about money.

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Posted in Planned spending aka budget, Uncategorized, personal finance | No Comments »

Nurses Losing Their Job-Are You Ready?

Friday, November 6th, 2009

One of the reasons that many people go into nursing is for job security.  The old saying goes, you can always find a job as a nurse.  This also used to be said about teachers, but this recession has seen lay-offs and furloughs for teachers.

Is your nursing job safe?

In your favor:

  • The population is aging.
  • Preventive care is getting greater prominence, meaning more nurses for evaluation and counseling will be needed.
  • The un-and under-insured are still with us, in spite of all the rhetoric out of Washington-meaning Emergency care is still a big issue.

Issues that are potential threat to nurse job security:

  • The health care bill(all proposed so far) will gradually decrease payments to hospitals and physicians-big nurse employers-these cuts will be felt everywhere.
  • Most hospitals are already under financial stress and strain from decreasing reimbursements and higher costs associated with safety measures, and new technology.

So what do you do to be prepared.  In general, hunker down.  Start increasing your savings, sell any big-ticket items you can reasonable get rid of-such as a car with a big payment-or other toys you can do without.  Cut the budget and get rid of anything that is not absolutely necessary-so that you can increase your savings.  Keep your eyes posted about other job opportunities that may be in a more financially stable area.

There is an article in the WSJ today-read it here- the article discusses some of the legal options regarding protecting your assets such as your  home against creditors.  If you have a definite imminent threat to your job, it may be worth reviewing these options with an attorney.

Of course, don’t make any decisions without careful thought and deliberation.  Most poor financial decisions were made on the fly, without thinking long-term.  The amount of job losses in the nursing profession are sure to be much less than in almost any other area-so don’t panic un-necessarily.

So let me know your questions, or comments.  Please forward this link to any friends that may be concerned about their job security.

And remember, the free e-book “Emergency Money Resuscitation” available at www.themillionairenurse.com.

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Posted in personal finance | No Comments »