You don’t have to be smart to be rich, says Jay Zagorsky, a research scientist at Ohio State University, and intelligence doesn’t necessarily translate into wealth. Having a higher IQ does generally mean higher income; however, even those with super high IQ’s over 125 occasionally miss payments and max out their credit cards.

The reasons that those with higher incomes and IQ’s face just as many financial struggles as people of average and lower than average intelligence are not completely understood but it is thought that those with high IQ’s may not be saving. Wealth is about saving money and not just income.

Read the article at the OSU website.

Here’s a way to make good on that New Year’s resolution to save money with a little help from the IRS. This year the IRS is offering to split your refund among two or three checking or savings accounts when you use direct deposit.

If you are due a refund, simply file IRS’ Form 8888, Direct Deposit of Refund to More Than One Account, to divide your refund among two or three different accounts. You can specify how much of the refund you want sent to each account. The amount sent to any one account must be at least $1.

If you are filing a joint return, the IRS will deposit it to a joint account or one held in either filer’s name but check with your bank to make sure they will accept a joint refund deposit to an individual account.

You can still elect to have your refund deposited to a single account by filling out the direct deposit lines on your form 1040 or 1040a. You need file a separate form 8888 if you wish to split the deposit among two or three accounts.

So why not earmark part of your refund for your savings account this year? It might be a great boost to start saving in 2007.

For more information on splitting your direct deposit refund see the FAQ page at the IRS website.

Every money site seems to have its golden rules for becoming rich. The trouble is, most of the rules require you to have a bundle of money in the first place! Rich is a relative term, after all, and a few thousand dollars is pin money to some, a fortune to others.

CNN Money has 25 Rules to Grow Rich By and my criticism applies to most of them. But seven of them make a lot of sense, no matter how much you’re starting with:

1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.

5. Never hire a roofer, driveway paver or chimney sweep who is going door to door.

17. The best credit card is a no-fee rewards card that you pay in full every month. But if you carry a balance, high-interest rates will wipe out the benefits.

19. Anyone who calls or e-mails you asking for your Social Security number or information about your bank or credit card account is a scam artist.

20. The best way to save money on a car is to buy a late-model used car and drive it until it’s junk. A car loses 30% of its value in the first year. (A much debated one, this - the problem is that there is something so enjoyable about that new car smell!)

22. Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower.

25. When you shop for electronics, don’t pay for an extended warranty. One exception: It’s a laptop and the warranty is from the manufacturer.

Of course, it would be nice to be able to go for them all…

‘Tis the season for debt

Every year holiday spending per consumer goes up and much of that spending ends up as credit card debt. Shedding that holiday debt is harder than shedding extra holiday pounds.

At the holiday season it is hard for even debt-wary and credit-savvy consumers to avoid over-spending. It’s not easy to resist buying that special gift for that special person.

The best way to finance your holidays has always been the Christmas savings account. Saving for your holiday spending throughout the year and not relying on credit cards with high interest rates could end up saving you hundreds of dollars over the course of repayment.

The interest on these accounts is minimal, so don’t plan on making money. The discipline in saving ahead of time is a good exercise in financial management and the peace of mind you will have when you pay for your holiday expenses without running up credit card debt is priceless.

Next year, plan on saving for Christmas a little bit at a time. Contact a banking institution about their holiday spending account plans.