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When I was growing up what are now called jeans were called dungarees. That likely derived from the “dungri,” the Hindi name for the thick cloth that was manufactured near Mumbai.  A popular brand then and now is Levi’s. It’s got cooper rivets. Why? It’s a very American story.

A Bavarian immigrant, Levi Strauss, arrived in San Francisco during the Gold Rush. He realized the miners needed sturdy work pants and he observed that the tools that they stuffed into their pockets as they worked tore the pockets. Rivets at the point of strain on the pockets were the solution he and a tailor, created and patented.

Touch the copper rivets and connect your process for mining for the gold in your own life with this story of ingenuity. Notice too that many jeans have five pockets, just the right number to organize your money. Two big pockets on the front, two on the back and one small pocket top front.

Starting at the front right- that pocket is for the essentials- what you must spend money on to get through the week. These are your “operating expenses.”

The other front pocket is for your safety net. Money you set aside for health insurance, life insurance etc. Rotating to the back pocket you set aside money for goals in the next twelve months. The other back pocket is for goals you want to achieve in two to five years.

That little pocket front right side is called by some, a change pocket, but I’d say it’s your retirement money. That’s because a little (no matter how many dollars) consistently invested for the future can grow significantly.

Suppose you were able to set aside $50 a week for ten years and a hypothetical investment could earn on average annually 8%. That might become over $36,000. If you didn’t invest it but just put it under your mattress, that might become $26,000: $50 x 52 weeks x 10 years. You’d be concerned your mattress being vulnerable to fires and thieves. Investors worry about a variety of risks which may include- market risk, liquidity risk, and interest rate risks.

No saving plan, and no organization for your longer-term goals are ways to undermine your financial future.

Instead, the visual of your five jean pockets can be a constant reminder about the various jobs for your money. Have you put the right number of dollars in each pocket to reach your goals?  Pay for your daily operating expenses, create a safety-net, save, and invest for goals to be achieved in one year, two to five years, and for retirement.

Your jeans can help protect your money because they remind you to have a plan for each of the jobs of your money. These miner’s pants can help you build your own “gold,” without the hardships of mining for gold.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

Penelope S. Tzougros, PhD, ChFC, CLU. Financial Planner, Author, National Speaker. Wealthy Choices.com. 51 Sawyer Road, Suite 340, Waltham, MA 02453. Direct to Penelope 781 577 2311.

Penelope@wealthychoices.com. Fax 781 893 3565. In all 50 states, Penelope S. Tzougros is registered with, and securities and advisory services are offered through, LPL Financial, Member FINRA/SIPC. She is affiliated with Bay Financial Associates, LLC. Financial Planning is offered through Wealthy Choices® and Bay Financial Advisors, Inc. Both are registered investment advisors. Neither is a broker-dealer nor affiliated with LPL Financial.