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Hi I'm Jean Chatzky and this is your Savvy Money Minute.
Brought to you in part by Alliant Credit Union.
today we learn money remember fourteen.
If you can see it and you can't touch it
you won't spend it. Why is saving money so tough?
Because it means putting aside resources for tomorrow
that your tempted to use today and your brain
wired to hunt and gather right now doesn't like that idea.
The solution? Mind games. Tricks that fool yourself into saving more.
My favorite? Put money where you can't see it
or touch it. A 401k for example.
Your savings are diverted from your paycheck before you even see them.
You know there would be taxes and penalties for early withdrawal so you
don't touch the money and it grows for tomorrow.
Take Lori, age forty. A year ago she had a good job but
couldn't seem to save. So, she tricked herself.
Every paycheck she had seventy five dollars moved
out of her checking account and into a separate emergency fund.
A year later? Almost two thousand dollars and she is feeling
good! You can do this too. Set up similar trick accounts
wherever you can. Remember, saving
money isn't magic. It's good habits.
For more information or to get your copy of my book "Money Rules"
ask your credit union representative.