Well its into July now – happy new financial year!
A new financial year could mean a new start or a fresh look at things. Or I suppose it could mean nothing at all.
One thing I’ve been thinking about in the last week is habits.
Before my nephew (4) and niece (1.5) go to bed there is a ritual. They say their goodbyes, and go and clean their teeth. Then we read a story in bed (ok 2 or 3 stories) and then say goodnight.
I’ve watched by nephew clean his teeth a few times and – lets face it, he doesn’t do the best job. He is all over the place! I asked my mum (his nana) whether someone should clean his teeth for him & do a better job. She says its fine – the reason for getting him to clean his teeth is more about the habit.
Habit and routine make up a lot of what we do.
Example: Cross your arms. Notice which arm is on the outside and which is closer to your chest. Then go back to normal and then try to cross your arms with the other arm on top. Very difficult!
Save 10%+ – no matter what you earn
I have encouraged lots of friends to transfer 10% of what they earn and put it into a separate bank account (and don’t touch it!). For more about this – read my first article.
Lots at uni say – I don’t earn enough to make it worthwhile. Even if it is only $10 a month, putting aside 10% is a habit and setting up the habit now will make it easier when you start earning real money. (Ok maybe this isn’t worth it if you pay $5 bank fees a month)
My first experience of savings was a Commonwealth Bank Dollarmites account. I think everyone in Kindergarten got one and we would deposit $1 or $2 a week in class and watched it build.
I was 12 or 13 when I got a paper run .The money was paid directly into the account and I saved most of it (and took money out when I wanted to buy something).
When I got part-time jobs when I was 14/15 I well used to saving. I got paid in cash and deposited most of the money each week into the ATM at the station (Yes – you can deposit into ATMs outside a branch, I am always surprised when people don’t know this!).
When I got a full time job I did find it a bit harder. When you are paid monthly you want to leave a bit of cash just in case. But as the habit had already been set, I was used to it. Otherwise I’m sure I would have spent what I made.
So good luck on setting up good habits!