I know someone who has been working on their green thumb over recent months. The end aim is a herb garden and to date there have been a couple of false starts. This time it looks as though there will be success, the seeds have sprouted and are looking healthy.
Growing herbs or vegetables is like a lot of things in life. Hard to get started and hard to stay the course – feeding, weeding and so on.
Savings are a good example. We get our first pay packet and most spend the lot. We consider that we deserve to splurge the first few pays and will start saving after that. Unfortunately for some, that is still the case 10, 20 or 30 years later.
It is a fairly simple formula to grow wealth over time.
- Spend less than you earn
- Invest or use the savings wisely
- Let time/compound interest do its thing
If it’s so easy though why do so few do it?
It’s hard to get started and it’s hard to stay the course.
Whether your goal is a house deposit, a car or financial independence at age 45 the first $50 you save seems incidental. Life happens and unexpected expenses arise and we use whatever savings we have. We are then left having to start all over.
End result? We stop. It’s too hard.
Like the herb garden we will have set backs. Keep focused on your goals and start again.
With spending options limited over recent months now is a good time to take stock. What can you put away each week or month? How much did you have in surplus when Covid-19 saw many jobs lost? How did you feel? Comfortable that you had a few months of expenses in savings or vulnerable and anxious?
Set yourself little goals: x dollars by June, y dollars by September. Keep track of your progress and congratulate yourself for reaching milestones.
Awareness is the key. Every time we buy something be aware of what it is you are buying and why. Is it habit? Is it something you need? Is it taking you towards your goals or further away? No need for a monkish existence – just be aware.
As Paul Kelly sings in one of my favourite songs “From little things big things grow”. Start planting.
Enjoy the week