The first time that I heard of KISS it stood for Keep It Simple Stupid. There are several other similar definitions listed on Wikipedia, but I like the “stupid” one best. I think this is a great acronym to keep in mind for solving money problems because most money problems result from the stupid decisions that we make.

Welcome to the Stupid Club

I know that calling people stupid is immature and rude, but lets face it. WE ARE ALL STUPID SOMETIMES; especially when it comes to money. Being stupid with money is not something to be afraid of and swept under the rug. It is something that needs to be confronted head on! Just do what I do. Accept your stupidity, look it in the eye, and tell it to KISS your rear end!

Keep Your Money
Invest Better
Shop Cheap
Stop Wasting

Keep Your Money

The first way that money problems begin is when the money comes in from our paychecks or other sources. Instead of taking a little and saving it, we instinctively blow the money on junk that we “want”. The money does not get spent on things that we actually “need.” It gets spent on things that we “think we need.”

To solve what I call the “need paradox” a small amount of money should be immediately siphoned off to a high-yield savings account or other investment vehicle where we cannot get our grubby little hands on it. This amount can be as little as 5% or 10% of our income. For some reason we don’t even realize the siphoned money is gone and it does not get spent on useless items that we only “think we need.”

I would imagine that this financial anomaly comes down to a genetic flaw that we all have with our perception of the financial world. Whether we are making $30,000 or $300,000 annually we instinctively want to spend it all and throw saving to the wind. Start solving your money problems by keeping more of your paycheck.

Invest better

The only way to really invest better is systematically and that is the genius idea behind the 401K and other retirement plans. Products that force us to save on a regular basis are the only way that most of us can actually invest successfully. That is why we created computers isn’t it? Our minds are simply too influenced by a crazy society, constant marketing gimmicks, and our own emotions to invest rationally.

So go safe and boring unless you enjoy gambling in the stock market. Start a regular contribution plan to anything like a mutual fund, an online savings account, or bond funds. Then stick with it. If you put in $10 per week, then automatically put in $10 every week. Dollar cost averaging will take care of the rest.

Shop Cheap

Deals are everywhere just waiting for you to find them. You can even print coupons out online from your computer. Competition for your business is at an all time peak with how bad companies are hurting right now, so bide your time and wait for the things you want to go on sale.

Print out grocery coupons and search online because unlike investing, a frugal mind will knows when it finds a good deal. Patience can be one of the best weapons in your arsenal for avoiding money problems.

Stop Wasting

Stop buying things that you don’t need and then trashing them later. The best example of this is the smelly cheese that you left sitting in your fridge and never actually opened. Well… maybe that isn’t the best example for you, but we’ve all been guilty of food wasting at one point or another. As a society the amount of garbage we create is amazing. The average American produces 4.6 pounds of solid trash a day!

What the hell is the matter with us?

I do not know the answer to the question I just posed and I’m not sure anyone else really knows either…

I do know that you can KISS your money problems goodbye if you start using the simple ideas presented here. Understand that we are all wasteful, emotional, and STUPID. We barely understand how we process information about money and that is why it is such a burden and stress in our lives.

Plug into your computer and start using systems like the free software at Mint.com to keep your financial life in check. Computers do a much better job handling money than we will ever be able to so start using them today and get a handle on your money problems!