Organize and Simplify

Galia also stresses the importance of organizing your financial holdings so they are easier to keep track of.  We all lead busy, hectic lives.  If you have a 401 (k) in one place, an IRA in another, and various checking and savings accounts spread out over various institutions, it is just that much more difficult to keep track of them!  By consolidating your financial holdings you simplify your financial life and increase the odds you will pay attention to your money.  There is enough stress in your every day life without having to worry about remembering where all your money is.

Safety in Numbers

Galia is a big believer in the buddy system. (Sometimes the lessons we learn as kids translate easily into our adult lives!)  She recently ran the NYC marathon with a group of friends and couldn’t believe how rewarding it was to face the challenge with the support of a group rather than all alone.  Trying to tackle any goal alone puts a lot of pressure on you, but if you can recruit a friend and set a mutual goal, you’ll have that much more support and goodwill pushing you along.

The evidence is everywhere; from weight loss groups to book clubs to running buddies, this theory works – so why not apply it to your financial life?  Galia recommends organizing a fun group of ‘finance friends’ to see who can save $1000 the fastest, or who will be the first one to pay down their credit card debt.  Who knows, maybe you want to propose a finance challenge to an existing book club or dinner group you already have?  Once you start the conversation, you might be surprised at how many others want to give it a try!

Cash Only

This may sound bold, but Galia thinks one good way to get a grip on spending is to use only cash for one month! That’s right – put your credit cards AND debit cards away.  We like Galia’s approach because she isn’t telling you not to spend – it is just about spending differently and learning more about where your money is actually going.  She says you will certainly be surprised at just how different your spending habits become when you are laying out cash for each purchase as opposed to just whipping out your credit card!  Especially for our friends who need to change their spending habits to pay off debt, this one-month challenge can bring about major changes in a short period of time.  If a month seems too long, we think even a week long trial will open your eyes and close your wallet!

Your ‘Money Matters’

Think about how many of us exercise on a daily basis.  We do it because a little bit each day adds up.  Now if we could just exercise good financial habits on a daily basis – think of how the savings could add up.  Easier said than done, right?  Well, Galia has created the ‘My Money Matters’ kitwww.mymoneykit.com just for this purpose! We love it because rather than a traditional workbook format, it is actually a box filled with financially related cards.  It contains everything from money tips, motivational affirmations, and financial workbooks to help you get started in a fun, non-condescending, user-friendly format.

We hope Galia’s Fab & Fru tips will inspire you to take action, grab a finance buddy or two, and take control of your personal finances one step at a time!

**Galia Gichon is an independent personal financial expert with more than 14 years of experience in financial services, including nearly 10 years on Wall Street and an MBA in Finance from Fordham University. She runs her own company, Down to Earth Finance, where she offers individual sessions and seminars to address personal financial needs and concerns. She has spoken at Pennsylvania and Massachusetts Governor’s Conference for Women, and is a frequent speaker at Barnard College’s Financial Fluency Program, and the New York Freelancers Union. Before starting her own company, Ms. Gichon worked at Bear Stearns, Nomura Securities, and Institutional Investor.

She lives in New York City with her husband and two children. She currently serves on the board of In Good Company. Please contact Galia at galia@downtoearthfinance.com or 212-734-0433 if you are interested in learning more about Down to Earth Finance and the services she offers.

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