No asset class or investment has the birthright to of a high return. – Howard Marks
I consider myself lucky to have the close friends that I have, they all contributed to my understanding of saving and investing.
The year 2016 was a very informative year with regards to my own savings habits, I had set some very high targets for myself at the beginning of the year and I missed them slightly. I took some time to try figure out what went wrong and I concluded all the costs that got into my way were avoidable – now that I have identified that it’ll help me to combat those costs during 2017.
A very close cousin of mine will start working this February, she wanted advice on a few things such as buying a brand new car or shopping around for a second-hand one, and whether she should get her own place or rent out a flat. I was reluctant to give advise given I had no idea of her short-term, mid-term and long-term goals. However I suggested she starts a goals driven monthly saving plan, even if she starts with a few hundreds and increases that over the years.
She wasn’t really impressed because she thought I had the silver bullet on all things savings/investing (sorry to disappoint you guys but no one person has the sauce doe, we are all learning here!). Howard Marks says it best – no one person, asset class or investment has the birthright to of a high return.
At the risk of coming across as immodest, myself and my close friends didn’t have a difficult January because we are always making provisions, always putting away something for those rainy days!
May you all have a prosperous year ahead, remember to pay yourself first (automate this process by having a debit order transaction that comes off as you get paid into a savings/investing account) and spend whatever is left over (spend less than you earn and save the difference). Set yourself some realistic targets, use budgeting apps like 22 seven for assistance to track your spending and investing.
Start now, start today, develop the discipline to save and invest while you are young. Make it a habit!
If I can’t convince you maybe the Oracle of Omaha, Warren Buffett can – Chains of habit are too light to be felt until they are too heavy to be broken.