Monday, October 10, 2016

Investing Habit

My parents taught me to save. Making my pocket money last the month. Matching my savings if I put money aside for something. There was an element of competition. I might have been the little brother, but at Easter I wanted to be the last with chocolate left. At Christmas, I wanted to be the last to have presents to open. I became a master of delayed gratification. If hard stuff needs doing, I would rather do it first, so that it is out of the way when I get to the sweet stuff guilt free.

When I started working full time, my first goal was to get out of the 'pay day trap'. If you can build one months buffer, then instead of going into the red and getting saved by the bell, you always have a cushion.

Another trick is to not adjust your lifestyle as your income changes. If you become comfortable with your lifestyle early on, rather than aspiring to something more as your salary increases, you can save more later. If you are lucky enough to get increases, they are easier to put aside than it is to cut down on money you are already spending.

You don't have to save 'to buy something'. You can put money aside to build a creativity engine. To create a muse. You can think of investing as hiring your money to work for you. Then whatever your money makes becomes its salary. As long as you are investing some of what your money makes, and spending some, then your money's salary will continue to grow. Eventually, you money can be the breadwinner and you can be the homemaker.

Enough is less than most of us think, but still more than most of us have. 

Saving is similar to having a healthy lifestyle. There is no secret to it, but food is really tasty and we don't feel like exercising as much as we should. It is a habit. Once you get into it, it becomes easier and easier. You feel better and better.

Starting is the hardest part. 

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