Last week, I nearly died of laughter for all the wrong reasons. I had come across a thread of saving tips and hacks. From the downright delusional to the unrealistic. It made me realize that there needs to be a major shift in the way that we view wealth creation as young people. It isn’t an overnight thing. Wealth is less about savings and more about habit. A long term commitment. I do admit though that some saving hacks can help you to identify places to cut down on expense in your monthly budget. However, it doesn’t end there.
Wealth is about long term thinking. It’s about making small and consistent decisions for your future self. It’s about adopting positive behaviours; spending less than you earn, setting goals, budgeting, saving, investing and accumulating income generating assets. It’s about nurturing the relationship you have with your money. It’s about understanding that the power of compound interest intensifies over time.
Wealth is the shade you get from the seed of savings and investments you sow. Positive habits will water and nurture those seeds. This takes time, sacrifice and delayed gratification.
I’ll end it with a jab from Joe Biden, “Don’t tell me what you value, show me your budget, and I’ll tell you what you value”. Your budget is a great indicator of your financial habits. Where does your money go? That’s where you need to start.