Snippets and Lessons from fellow Happy Savers
31 May, 2020
I used to feel like a lone voice in the niche space that is “personal finance in New Zealand”. But that’s no longer the case and The Happy Saver blog has connected me with such a diverse bunch of people who are all trying to forge their way ahead with money and who each show me the good work going on in so many households across New Zealand.
I’ve been privy to so many ah-ha moments as people transform a pretty crappy situation into a good one, plus I’ve enjoyed hearing all about the great situations people have worked their way into. I get a few laughs out of your emails as well with all the “dohs, duhs, mehs, OMG’s and “it honestly never occurred to me” comments.
The one thing that is clear to me at least is that there is no quick way to wealth, it’s a slow process made up of good decisions and along the way, I get to have a quick glimpse into many people’s situations. So, this week I thought I would share some of the really positive snippets and lessons that I’ve taken from the emails I’ve received from many of you (whilst protecting your privacy) in the month of May because you say SUCH GOOD STUFF.
In the big world of “debt is cheap, just borrow your way to wealth” I’ve worked out that those who talk the loudest are actually often wrong. It’s the quiet achievers that we need to listen to, those who continue to make consistently good decisions with money, the non-judgemental ones who just stick to their financial plans yet don’t actually generally share what they are up to. But they might if you take the time to ask them. When someone needs help sifting through how they handle their money they can often get sidetracked and confused because there is just so much information out there, hence why they often write to me asking for a plain English response, so today I’ll share many of the wise observations, comments and questions that those who write to me make.
Regarding the four years of work that is The Happy Saver, my own family barely take an interest, my colleagues are indifferent and the majority of my friends are completely ‘meh’ about what I do with my blog and the help I offer others. So be it. Because of that, I get so much out of each and every email because I’m the same as you, I also still find it hard to find someone to talk about money with but that void has been more than filled with all the fantastic people I come into contact with via blogging.
So, once again, thank you for always taking the time to read what I write and listen to the podcast Jonny and I produce and for taking the time to care enough about your own financial situation to get in touch and ask for some help.
Enjoy.
People just want someone to talk to about money:
“I often find that friends don’t want to share financial conversations, and because I don’t have a partner, your emails are often the closest I get, thanks for cheering me on.”
“So, we had a big chat the other night (one I was nervous about but we needed to have) and found out we BOTH wanted to pay off the mortgage faster so that was a huge relief to me!”
“It’s so helpful to talk to someone else who is actually interested in talking about money.”
“I know you are not a financial advisor so I'm mostly just venting my thoughts on electronic paper but if you have any views, either way, I would be keen to hear them!”
“I might talk to some more non-broke friends and see what they are all doing.”
You want to hear more about what other people have got going on:
“Thank you for another great podcast this week. What a resilient resourceful woman you had been talking to! I really enjoy listening to all your podcasts, there’s always so much to learn from other people :) ”
An acknowledgement that we all handle money differently:
“In regards to my grandkids, one can save and the other is hopeless - but their Granny has their back and is teaching them!”
“I come from a family that thinks investing is for rich people and people like us need to work until we drop to keep food at the table. It is totally foreign grounds for both my friends and family.”
What’s the secret to money?
“Working in the finance space, I see some huge drawings of clients and I always wonder where it goes and they are always stressing about money and how to get rich and buy themselves a small farm faster. But the only secret I see is that those that spend less and live within their means get ahead a whole lot faster.”
“I so hope this (COVID-19) has been a wake-up call for people! Money can’t buy happiness but it sure can buy peace of mind.”
Having an emergency fund is crucial:
“I have enough savings for my little family to frugally survive until I work out my next source of income will be.”
“Our emergency fund has reaped the rewards of not paying for childcare while in lockdown, just $2,600 to go before I can cap that off and focus on the mortgage.”
“With interest rates so low a savings account seems pointless BUT I guess your money is always there.”
“Need be, we do have an emergency fund that could cover a large bill.”
“We have almost built up enough savings to cover six months of expenses/maternity cover.”
Some have a mess to clean up and a willingness to try:
“Any thoughts on regretful purchases and trying to right the damage that was previously done???”
“Financial education has me down a rabbit hole - there is so much to learn, but it is like a fog has lifted now.”
Some have decided to change their investment approach due to the current situation:
“We’ve made the hard decision to put the rental property on the market.”
“I have a question about emergency funds AND paying back my mortgage as fast as humanly possible.”
Having a plan will give you a lot of confidence and you approach uncertainty with calmness:
“I'm happy with this ‘set up’ until we get through all the uncertainty and can then change things up in two years.”
“Two months ago was the first time in my life where I could forecast my finances for a whole year.”
“We are currently living overseas and were looking at how we can be ready to buy a house on our return.”
“Towards the end of February, we decided to reduce our mortgage payments and send extra funds to our emergency fund instead.”
“Budget, I have to budget. Otherwise, I just wonder where all my money went!”
“If we stay the course with this plan, we will be paying off our house in our goal time.”
“Now that the world is looking very uncertain, I am delighted my plan proved to be spot-on and should survive even the biggest shitstorm.”
“To put it simplistically, I am going to draw down on my investments in good times and/or live off my cash reserves in bad times.”
It takes time to form good habits:
“My wife was studying for so long we got pretty good at living and saving off my income so when she did start working a few years ago we went pretty hard on the mortgage to make the most of DINK (double income no kids) life while we could.”
“I am fast learning from your podcasts that even the smallest amounts make a big difference.”
It is never too late to start:
“I was always aware of money in the background and was a good saver even though it took quite a few more years to understand and actually get investing.”
“It was turning 49 and staring at 50 that the panic set in and started me on this route.”
“I really hope the temporary moratorium on spending has jolted some into the realisation that life can be so much “cheaper” without missing out on things.”
We each have regrets:
“It sounds like we are on the right track, but I’m annoyed I didn't start tracking my finances sooner!”
“So, the car payments are a huge chunk of our pay and we are paying ridiculous interest.”
Oh, and by the way, this happened:
“We were in the very unusual position of paying off our mortgage in the early weeks of lockdown.”
Right, enough reading you said, time for action!
“Right! Action time! Time to set up a regular transfer into the savings account.”
A key observation and a simple strategy:
“Turns out being smarter with money really does mean less stress in times of uncertainty.”
“I’m keeping it simple and I’m in it for the long haul.”
“It was a bit of a no brainer to choose to be somewhere with a lower cost of living (lower South Island) and affordable housing.”
“Low-interest rates for borrowing do give me the opportunity to smash my debt much faster.”
Some are facing a choice and a conundrum:
“Whether to pay off my mortgage first vs put my savings in a low-cost index fund?”
“I understand the interest saved on paying off the mortgage faster is guaranteed, whereas investments carry a risk.”
This is not good fortune, this is good planning:
“We are fortunate to have no consumer debt.”
The Ah-Ha moment:
“I don't know why but it never occurred to me to take the surplus from our cheque account each month and move it to another account.”
“I never knew it was possible to offset savings against your mortgage.”
People are very polite and grateful when they email me:
“And thanks just for taking the time to help someone blundering their way through previously uncharted waters. It’s much appreciated.”
“You’re so good at this. Thanks, Ruth”
“OMG, you replied, I never expected that!”
“I feel very enthused by your showing an interest in me!”
“Thanks for your blogs I find them so helpful! And you've made us finally start to dabble in shares again.”
“Thank you once again for your opinion - it has helped my thinking become a lot clearer.”
“Thanks again for all the content and wisdom you are sharing.”
There you have it! A peek inside my inbox. With some people, we have a big email exchange back and forth over a period of days or weeks. Some ask a big question and I give a big answer, never to hear from them again! And with others, I hear from you once or twice a year as you touch base and update me on what’s been going on. It’s all good and I’m always delighted that people trust me enough to get in touch and share what’s on their mind.
