SIMON BROWN: The importance of making a habit of it
The forming of habits is a neglected but vital element of managing personal finance. And small changes can make for a big impact over the long run
In my first personal finance column for the FM I want to focus on one of the most important, but mostly overlooked, aspects of personal finance and, truthfully, life: habits. We’re human, and habits are hard, as proved every January. We promise ourselves we’ll save more, drink less and exercise, but these lofty goals seldom make it into February.
But a good habit over a lifetime can make a real difference. One of the oft-repeated personal finance ideas is to buy one fewer cappuccino a day or a week, and rather save the money. But is anybody really getting rich by saving R30 a day or a week, especially if you keep the habit for only a few months — or worse, spend the money saved?..