Brain Dump | Morning Musings

Isn't it crazy that 99% new resolution fail?

Maybe it isn't crazy afterall because during during the first month of the year, we wanted to fix whatever problem is plaguing our lives. The thing is, we probably didn't think though that changing a habit is hard. It is as hard as breaking a block of wood with our own hands. ( it is possible but that will take a lot of practice) which is why I said that.

The common resolution I've heard is always, " I am going to save up more money, I am going to lose more weight, going to travel more" but without really any understanding that the pathway going there isn't easy, it's definitely going to be a major challenge.

Welcome to my brain dump, it's morning and when I can sit down, sipping a cup of coffee while contemplating life and emptying it out a little.

This year survey conducted in multiple countries indicated that there is a strong focus on financial and mental health. These surveys could help rougly indicate that basically people are gearing up for tough times ahead. It aligns with reality, data and projection that getting a job is going to get tougher and trends are also lining up with the idea of no-spend year and underconsumption. In the US itself, according to statista saving money is the top 2 where the top list is basically not making any resolutions at all.

Backed up with those data, it's no wonder that probably you've seen things like How Gen Z are the poorest generation with much less purchasing power than its previous generation. Among all the videos out there, one in particular that's fresh from the oven is from Asmon who discuses these problems.

The thing is, we're probably friends with outliers or seen the outliers where they aren't that poor. However, I notice this tendency with my generation where what you see isn't the whole picture. A lot of people likes to keep up with new trends and that is supported with the BNPL system, (Buy Now Pay Later) with such a high interest rate that we're not aware of just because it looks cheap in number. There's also the subscription trap where just as discussed here it makes us poor. While I am not aware how it woks in other countries but in developing countries, we can actually enjoy these things for cheap because regional pricing system and also, people re-sell their subscription. So, rather than paying full-price you pay a couple of cents for a month subscription. Yet obviously, forget about privacy and all that. It's a shared account that everyone could probably see what you're watching. In my opinion, I think we can still enjoy these streaming services when we budget.

Much like everyone else, my new year resolution is actually similar, I want to manage my money and save up as much as I can again. Having comfortable savings is the key to comfortable life. I've learned my lesson and though as much as temptation is really high to travel, to wander, but I am starting to recognize that traveling is a privilege, not just something I can do on whim like I used to.

My saving tips are pretty simple actually. I just set up saving account that is separate from every of my active cards. I put whatever amount I am comfortable weekly and that savings can't be just taken out our of whim. This method is known as Fixed Deposit but you can also do Saving bonds. It's even better if the bank allows you to do it once every few months because you can withdraw it with interest, re-invest the money into investment of your preference and make that capital work for you.

If you're comfortable, do bonds although depending on the type, they can have low-return as well. Or you can also the same thing in hive with the HBD savings option. So, let's say you have 1000 HBD in 3 months or just 13 weeks you'll have extra 37.50. It may not seem a lot but for those who has never saved anything in their life, that extra sum of something is rewarding. Heck, I got excited even with just $3-4 interest 🤣 and my girl math is basically, I have more money to invest it back in some other form of investment instrument.

There's also another side of this story that Gen Z is actually the generation that has a lot more information on financial information and accessibility yet strangely, we're considered as one of the poorest generation. There has to be something around that too. Anyway, see you around!