Money lessons learned in 2015
This year's financial journey has had plenty of highs, but also a few bumps and dips along the road.
The good thing about hitting a pothole is it often gives my brain a good jolt.
Sometimes it's a new thought, but more often it's a reminder to stay on the right path.
Here are the six biggest money lessons I learned (or re-learned) in 2015.
1. Fight lifestyle inflation
This year I lived in a house with real wooden floors, two bathrooms between three people, and a kitchen built this century.
For a young person living in Auckland, this is the definition of opulence.
Returning to a bigger flatting situation this month felt like a step backwards.
Of course, it's ended up being the opposite of that.
My rent payments have been cut in half, my money goals are back on track, and the new flatties -all seven of them- are fantastic.
2. Set specific goals
It's easy to convince yourself you've earned all the little luxuries that creep into your spending, and hard to give them up.
Without clear goals, I'd struggle to fight against this lifestyle inflation.
This year I made my ambitions a bit more concrete, which has helped heaps. I've now got an exact savings figure in mind, and know the date I want to hit it.
Every time I go to spend money, I visualise the number.
Other strategies include writing your goal down every day, setting it as your phone or computer background, or making it your password.
3. Set and forget
I used to think people who struggled with over-spending needed to harden up.
It's true that willpower can be strengthened with practice, like a muscle.
But lately I've realised that it's also a good idea to take it out of the picture where possible, by removing the temptation.
Examples would be setting up a transfer to your savings account right after your pay goes in, upping your KiwiSaver contribution, or automatically drip-feeding money into an investment fund.
4. Push your limits
Lucius Seneca was one of the richest men in Rome, but he sometimes travelled with just a cloak to sleep on, fasted for the day, or wore rags.
The point was to remind himself that all his wealth could be stripped away, and not to grow too attached.
This year's 'Austere August', in which I tried not to buy anything for a month, went a lot better than 2014's effort.
But some readers who joined the journey put me to shame, and I'm looking forward to stepping it up again next year.
5. Less is more
I like to pretend I'm a minimalist. Moving house was a stark reminder of the embarrassing amount of junk I drag around with me.
It took three back-breaking trips in my hatchback, compared to a single carload when I flew the nest at the start of adult life.
Trade Me auctions and op shop donations continue. I'm slowly downsizing and winning the war on stuff, but there's plenty more work to be done.
6. Don't buy a boat
They say the two happiest moments in any man's life are the day he buys his boat, and the day he sells it.
Having recently completed this bittersweet process, I can confirm: Never a truer word was spoken.
Written by Richard Meadows. First appeared on Stuff.co.nz.
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