1. Why saving money is so hard for some and one simple system
to change that
Part II
In order to be successful at creating a new habit you must not rely on will power
alone. You must have a dependable system that is structured to bring clarity and
feasibility. That’s what I am going to teach you here.
Divide your saving goals into Wealth Building and Purposeful Spending and clearly
define them as the following.
Wealth Building is strategic wealth accumulation with asset classes that will someday
generate an income when you no longer wish or able to work. Examples include:
• Cash to purchase a rental income property.
• Permanent life insurance premiums.
• Retirement savings.
Purposeful Spending is essential and discretionary purchases you deem necessary to
sustain a good life. These can be long term or short term. Some examples are,
• Down payment for your primary residence.
• College tuition for children.
• Potential medical spending for a parent.
• A vacation
• Anticipated car repair.

2. • A new pair of skis.
• Certain amount of Discretionary spending.
Implement a banking structure that supports these goals. You should have THREE
bank accounts and here is how they work.
1. Create a Wealth Account to hold your Wealth Building Goals and direct
deposit all your income into this account. In actuality this is a checking
account but we will label it “Wealth Account.”
2. Label your savings account “Purposeful Savings” and allocate from your
Wealth Account certain amount each month towards your goals. This
account also serves as over-draft protection.
3. Label a second checking account “Personal Operations.” Schedule bi-
weekly transfers from your Wealth Account to cover your current living
expenses. Live within your means. Any remainder will create a savings
in the Wealth Account.
Continuous maintenance is key. Monitor closely your “Personal Operations” account
to prevent overdraft. Each time you get a pay raise split the additional money to
reward your handwork and increase your savings. This way your savings will grow as
you make more money.
If you have a business you can use a very similar structure to manage your operational
and strategic expenses.
We save because for most of us we have mastered living a good life today and the real
challenge is living this good life for the rest of our lives. I have taught many people
this simple system to create savings but SIMPLE does not mean EASY. Changing a
habit takes time but it can be done. Talk to your Financial Professional and define
your goals. This will be a very uplifting conversation.

3. This article was written by Peter Mu
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), OSJ 20 Bicentennial Circle, Suite 100, Sacramento, CA 95826, 1-916-379-0200.
Securities products/services and advisory services are offered through PAS, member FINRA, SIPC, Financial Representative of The Guardian Life Insurance Company of
America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Pacific Advisors, LLC. is not an affiliate or subsidiary of PAS or Guardian.
Insurance Products offered through One Pacific Financial & Insurance Solutions LLC, DBA of Pacific Advisors, LLC. Pacific Advisors, LLC. is not a registered investment
advisor. CA insurance license 0E19513
This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been
gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with
individual professional advice.
Links to other sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents, and employees expressly disclaim any
responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the
completeness, suitability, or quality thereof.
Image is credited to Daniela Cuevas, www.danielacuevas.com Public domain, free for commercial use. http://thestocks.im
Sketch diagram is created by Peter Mu
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