Have you noticed the ever increasing number of movies and being remade? From "A Star is Born" to "The Karate Kid", we have an unquenchable desire to remake, remodel and reinvent something that's already been done. This includes the overwhelming number of sequels that never seem to end; can you say "Friday the 13th Part 23" and "Rocky 19"? The fact is, we are somehow comforted with what is familiar to us. What could be a better example of this than Hollywood taking a rather dopey TV show like "The A-Team" and making it into a big screen extravaganza?
When it comes to our money life, the same theory applies. We tend to do what we've always done. If you grew up writing checks, then online banking is somewhere between extremely difficult and impossible for many. I don't think my children even know how to write a check! They get their cash from an ATM and pay their bills online, PERIOD. We are creatures of habit, which allows us to do things by rote, rather than reason.
Just as there are good remakes, ala "Scarface" and terrible ones, "The Pink Panther", there are habits that work for us and those that keep us locked in an unending cycle of despair or "Love Boat" reruns.
Here's a list of several Academy Award level habits that stand up to the test of time:
1. Pay yourself first: When the pay check comes in, the first payment goes to savings, investments or debt cancellation.
2. Maximize 401(k) Contributions: investing on a pre-tax basis is a pretty sweet deal. If you have the cash flow to handle maxing out your contribution: Go for it! If your cash flow is tight or funds are needed elsewhere, then contributing to the limit of your ability.
3. Rebalance your investments periodically to a sensible allocation model. This keeps your portfolio aligned properly to specific risk portfolio.
4. Meet with your Financial Professionals periodically and make sure they understand what's important to you. Make sure your documents (Wills, etc) are appropriate and up to date. Meet with your CPA to discuss changes and have tax projections prepared. Work with a CFP® who can provide a written financial plan that reflects your goals.
5. Share your thoughts: Talk about money, with your spouse and your children. Money shouldn't be a deep dark secret.
Here's a list of habits that will surely put you on the "Razzie's" list of losers:
1. Accumulate credit card debt: keeping balances accumulating creates a cycle of doom.
2. No emergency funds: Living without cash reserves is like walking naked during an ice storm: you won't last long.
3. Don't plan: There are those who believe that life happens and planning is foolish. It sounds so "Easy Rider-ish", but just wait until your working days are behind you have nothing put away.
4. Follow the "Experts": Cable news is filled with so-called "experts," "gurus" and a vast array of talking heads who all have opinions. Follow their "advice" at your own peril.
5. Believe in your ability to pick stocks or time market movement: There are those who believe this unique gift is theirs. How's it working out for you?
We are inundated with reruns, sequels, and remakes - some good, some bad -because there is an underlying comfort with things that are familiar. The question is, Does that need for comfort serve you in your money life or does it put you in a potentially devastating position?
Take a moment to ponder that. Meanwhile, I'm going to pop some popcorn and figure out whether to watch MASH or Ghostbusters 3.
