Like investments, everything with an upside has a downside also. I’ll tell you about hypothetical scenarios with hypothetical clients using hypothetical investments. No way to get into trouble with that.

We’ll discuss all kinds of different issues. Mostly having to do with how you figure out who you are when it comes to money. What are your options and how do you go about managing money. We could also share a laugh or two. I will not be making predictions (though I have a secret method for attacks of gout). After all there are hundreds of economists who make predictions and are even better at explaining why they were wrong. They say if all the economists who make predictions were laid end to end they’d be far more comfortable. Instead we’ll talk about ordinary stuff that most people do but badly.

Take my hypothetical friend Bob. We were having a hypothetical beer together. “Look,” he said, ‘I make $80,000 a year. I work very hard. I’m supposed to be in the top 10 percent in income. Yet I have no money, I live in a rented apartment; I owe more on credit cards and cannot keep up on payments on my new car. I am already 46 and have only $12,000 in my 401k. What am I doing wrong?”

Or take Sally and Jim. “We make over $100,000 and still cannot figure out how to buy a home and have kids,” Sally said to me. “I mentioned I could only help with one of these problems. They chose the house. “Every time we look the prices have gone up another 10 percent,” Jim said. “Can we ever afford to buy?”

If you are Bob or Sally or Jim there are millions like you. I’ll tell you a little joke.

“How many psychiatrists does it take to change a light bulb?” The answer: “Only one but the light bulb has to really want to change!” You guys will not make it even if you get 20 percent raises next year. It will all go into your lifestyle. You have to change how you spend your money. I’ll bet you guys have more than five credit cards and buy everything that catches your eye.

If you’re really serious about conserving money and making it grow, try this: Imagine you live in Afghanistan where there is no Macy’s or Bloomingdales or Starbucks and no fancy places for dinner. You already have more clothes, and gadgets and furniture and stuff than the whole population of Tora Bora. It’s spilling out of your closets. Stop buying more. Stop dining out three times a week. Stop buying that silly diet food at crazy prices. Cook your food, eat half portions, brown bag your lunch and for God’s sake don’t buy exercise machines. If you cut out all that stuff and chop up all credit cards but one you’ll have some discipline in your spending.

Then set up a system to take the maximum out of your paychecks into your 401k plans. Another 10 percent of income could go to a low risk investment, removed from your account the day after your paycheck hits. If you really do this, the rest can be done for you. If you procrastinate you may really end up in Tora Bora and it will serve you right. I’ll see you next week when we’ll talk about what do with what you save.

Mr. Sen is a certified financial planner (www.sunandansen.com). He is a registered representative offering securities and investment advisory through FSC Securities Corporation, a registered broker-dealer and member, NASD/SIPC and a member of The AIG Advisor Group.