Hi, I’m Little House from Little House in the Valley and I’m part of a larger personal finance blogger’s network called the Yakezie.com. Our community of finance bloggers selflessly support others with the common goal of sharing our finance experience and knowledge. As part of that support, we frequently swap posts to help broaden our readership. This month our blog swap topic is about If I had one financial do-over, what would it be and why? Be sure to surf over to my site as well to read another member’s perspective on their one financial do-over.
Once upon a time in elementary school, I asked for do-over’s in handball, kickball, and pretty much any sport having to do with hand-eye coordination and a ball. If the group of kids I was playing with were in a good mood that day, they’d allow me my one, or sometimes two, do-over’s. But on days my peers were in a competitive mood, I’d pity the fool who asked for one. On those days, their behavior paralleled real-life more accurately; a lesson I should have taken to heart as I grew older.
Do-over’s just aren’t a reality when it comes to life choices; financial or otherwise. Of course, there’s always learning from your mistakes and moving forward in a more positive direction, but going back in time and changing the outcome of a decision or action isn’t possible (at least, not yet!) Unlike asking for a do-over in a primary kickball game, you can’t ask your credit card company for a “do-over” after going over the limit. Most credit institutions, like competitive peers of yesteryear, would firmly say, “No!”
But what if I could bend time and change one financial choice, a financial do-over of sorts? Choosing just one in my case was difficult; I’ve made so many poor financial choices throughout my early adulthood that I had many to choose from. However, if I had to pick just one it would have to be developing a habit of saving 15% or more of my income. Of course, I’m learning to save 10% – 15% of my income, but it’s still not second-nature to me; it takes work! Had I started this practice, automatically deducting 15% from each pay check, at the tender age of 17 when I landed my first “real-job” working at a pizza shop, by now it would be an automatic habit. Not to mention compound interest would be working its magic. And, as my salary has increased slowly through the years, that 15% over time would have grown as well.
So does this mean I’m financially doomed to a life of poverty and I’ll never be able to reach my savings goal? Of course not. It just means I need to automate my savings so I can’t touch it, learn to live off less than what I make, and consciously save a substantial amount of every source of income I receive. Living on a variable income makes automation a little more difficult, but it’s not impossible to create a savings habit now. Though I can’t ask for a do-over from 2 decades ago, I can start making better financial choices today.
Based on your own financial choices, what’s the one financial thing you’d want to do-over?
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The Saved Quarter says:
June 10, 2011 at 10:58 pm (UTC -4 )
Oh, me too! I wish I’d started the savings habit early, and that I had the awesomeness of compounding interest on my side all these years! You just can’t make up for lost time with that, but starting to save later is better than never.
Little House says:
June 11, 2011 at 2:06 pm (UTC -4 )
Nope, that lost time is gone but at least I’m now on the right path.
Moneycone says:
June 11, 2011 at 8:32 am (UTC -4 )
Another thumbs up for automating savings! Very true – in real life there aren’t too many second chances!
Little House says:
June 11, 2011 at 2:05 pm (UTC -4 )
If only there was more education on this topic. But at least I’ve finally learned!
Barb Friedberg says:
June 12, 2011 at 2:50 pm (UTC -4 )
Little Hose, Your final line said it all. What’s important is that you are saving regularly now. Luckily you realized the importance of disciplined saving and investing now and not later.
Ross @ GoBeRich says:
June 12, 2011 at 4:25 pm (UTC -4 )
You bring up something that I’ve always felt rather strongly about, although I know it wasn’t your exact intention to with this particular article, and that’s the fact that school doesn’t seem to prepare kids for real life.
In school, everyone nowadays gets a trophy for participating, regardless of anything else, because we can’t possibly hurt any young, tender child’s feelings. I’m not saying teachers and the school system should be ruthless to these young kids, but I do think school should strive to emulate the real world just a little bit more.
101 Centavos says:
June 30, 2011 at 8:30 am (UTC -4 )
Automatic savings is the way to go for most people. If you don’t see it, you can’t spend it.
Yakezie June Blog Swap Round-Up says:
June 11, 2011 at 11:51 am (UTC -4 )
[...] Little House’s Do-Over! Do-Over! at FSYA Online. It looks at the road to saving more, starting on an elementary school [...]
Sunday Blog Round-Up & The Most Epic Commercial EVER! says:
June 12, 2011 at 3:57 pm (UTC -4 )
[...] Little House yell’s Do-Over! Do-Over! at FSYA Online. It looks at the road to saving more, starting on an elementary school [...]
Little House in the Valley - Saving with a Plan says:
June 18, 2011 at 9:02 am (UTC -4 )
[...] Blog swap with Financial Success for Young Adults - Do-Over, Do-Over, Can I ask for that? [...]
Sunday Roundup: Father’s Day | Live Real, Now | Live Real, Now says:
June 19, 2011 at 6:30 am (UTC -4 )
[...] Little House yell’s Do-Over! Do-Over! at FSYA Online. It looks at the road to saving more, starting on an elementary school [...]
Little House in the Valley - Saving with a Plan says:
November 9, 2011 at 9:38 am (UTC -4 )
[...] where she writes about investing, trading and money management. Check out the post I wrote: Do-Over! D0-Over! Can I ask for that? over at her site [...]