"All of our life, so far as it has definite form, is but a mass of habit - practical, emotional, and intellectual - systematically organised for our weal or woe, and bearing us irresistibly toward our destiny, whatever the latter may be." ~ Williams James

Beginnings are not grand. They are mostly humble, and the subsequent steps, to keep forward momentum consistently applied,  become habit forming.
One of the biggest differences between those who do, and those who don't progress their goals or achieve change, is getting so tied up in fear of failure or anticipating unknown outcomes that trip you up before even crossing the starting line. 
One of my favourite books recently, Atomic Habits, by James Clear makes the same point over 300 odd pages. I was gifted this book last Christmas by my niece, and it was an unexpectedly riveting read from start to finish.
Clear starts with his own journey of transformation, sharing his improbable recovery from a debilitating brain injury. It is a story of mind over matter, as well as a series of staircase triumphs. 
Using compelling case studies, like how the British cycling team pulled itself out of the performance gutter to world-leading, Clear makes the point that big change is not one-time-radical but a series of small but cumulative tweaks over time.  Honestly, this book was a page-turner for me.
Like most people these days, I admit to suffering from a bit of attention deficit, given the competing pull of social media snacking. Atomic Habits kept me glued.
Charles Duhigg's "The Power of Habit, Why we do what we do in life and business" was similarly mesmerisingly. Duhigg doesn't focus as much on the micro but on the macro behind what drives human behaviours and the overlapping insights and connections that lead to great outcomes. The quote above comes from his book.
One of the many stand-outs was Chapter 4 on Keystone Habits or the Ballad of Paul O'Neill. 
This chapter describes how O'Neill, a former US bureaucrat, transformed Alcoa, The Aluminium  Company of America, from one of the most lethal workplaces in the U.S. to a shining example of workplace health and safety. In doing so, he transformed their balance sheet beyond expectation. It's a cool story and a reminder of what can be achieved when social good is a priority.
The Starbucks chapter was a similar feel-good story that revealed some humanity underlying corporate America. 
If these books don't leave you feeling inspired, I'm not sure what will.
They are both must-have additions to your personal finance library or reading list. 
Psychology is central to personal finance. Habits are too.
If you understand your mind, as well as your habits, you'll find that sweet spot in personal finance where it becomes less like work and more like a challenge.
Everything in your life reveals a story. 
Your weight, your scars, your job, your relationship, where you live and how you live.
If you were conscious of those choices and decisions, chances are they will be a net positive. 
If you're looking to improve your finances, you need to understand how you came to be where you are and then map a different journey if you want one.
Most millionaires are not made overnight. They are the product of cumulative choices made over time.
Ask, and you shall receive.
Seek, and you will find.
Firstly though, define what are you looking for?
Map out a timeline and a series of steps you need to do to achieve that goal or destination.
Note the impediments, challenges and resistance you may encounter.
Expect a setback. Expect several. That should be implicitly understood as part of the process.
Find a buddy or mentor to hold you somewhat or fully accountable.
Reward yourself with little victories along the way.
And to quote a now famous fishy, "Just keep swimming."
Oh, and if you need one more little reason to feel hopeful, dig up the incredible back story of Ellen DeGeneres's voice acting job for the role of Dorrie and where that subsequently led her, if you don't already know. Incredible story.
If you can't find it, watch her Netflix interview with David Letterman on his show "My Next Guest Needs no introduction."

Buy now, pay later is a great idea until it's not.
With the rising cost of living resulting in skipped payments and late fees, the reality of all too easy borrowing facilities is coming home to roost. 
Since After Pay and the like came to New Zealand around five years ago, the Buy Now, Pay Later approach to buying has become very popular. Especially with younger folks and students who may not be so cashed-up. It's easy to understand why? (Listen to my most recent podcast on Smart Money with NewstalkZB here). 
It ropes in a whole new slew of buyers that will add to their bottom line for retailers. 
It gives shoppers easy access to debt that they may not otherwise get because, unlike credit cards, there are no credit checks done to get it.
It also serves up an easy consumeristic high. They call it retail therapy for a reason.
Typically, you pay 25% of the cost upfront, with the remainder being split over six-eight weeks, which is interest-free.
Too easy, right? Yes, until you forget or can't make one of the regular payments, you are fined. 
With After Pay, the fine is $10 for anything under $40. And for over $40, the maximum fee is 25% of the original cost, up to a maximum of $68, whichever is less. (Read this excellent review of AfterPay here on MoneyHub.)
With a maximum purchase limit of $2,000, it may seem harmless enough, and yet even at that threshold, people are now running into repayment problems. (Read more in this Stuff article by Rob Stock here).
With petrol rising above $3 a litre and cheese costing $20 a block, it's no wonder. Suddenly, the cost of living in New Zealand has soared. Inflation, nearing 8%, is running hotter than in 50 years!
Those cheap shopping sprees are now riskier than ever from a repayment perspective.
The harsh truth is that it has become too easy to borrow money. 
As tempting as it is to blame the lenders for making it too easy, there should be some personal accountability too.
So many people are in the poo financially because they don't keep close enough track of their spending, and they fail to understand the critical T&Cs of borrowing money and the actual long-term cost. 
But the root problem I maintain is that most folks don't know how to control their impulse, which leads to buying stuff in the first place that they couldn't actually afford.
Don't get me wrong. I get that it is convenient if you need a new pair of shoes for an important job interview and don't have the cash up front to buy them. First impressions are everything, so you wouldn't want to show up looking less than your best. I get that. But the sad reality is that most purchases people make are totally frivolous and unnecessary. If you can afford them, great, I guess. Still, if you can't, it will cost way more than the purchase price because you were late with the payments or failed to pay off your credit card balance in full each month. This is where one bad habit builds after another and starts to make your life financially difficult.
So...

• Before buying, ask yourself whether you really need that shiny new thing that's caught your eye.
• Consider waiting at least 24 hours to see whether you still have a hankering for that thing the next day.
• Look at your bank balance and determine whether that extra payment is realistic, even if it is deferred.
• Stop to reflect on whether what that helpful for more than a fleeting moment or occasion.
• Ask yourself what the opportunity cost is? i.e. if you don't buy this thing, where else may that money be better spent? i.e. maybe you still have a lot of outstanding credit card debt carrying high interest that you should be retiring instead of acquiring more debt.

Over time, when you put these practices into play, you begin to shift your mindset and behaviour around money.  
Mind over money. Simple.

Life is not easy these days, but I'm not sure there was ever a time in history when it was smooth sailing for us humans. 
I hear so many troubling stories lately about our youth, too many of whom struggle with a sense of disconnection, both to others and themselves.
When my son's friends go off the radar, they're in monk mode. I wish it were so. 
Rather than meditating in nature or reflecting quietly about the cause of their demons, you'll find them locked in their rooms, being swallowed up by an algorithm. Monk mode only in social seclusion.
In true monk mode, one would look deep within, not at a screen with dancing monkeys, but at the random, illusory and discordant thoughts that express themselves just like them.
Outside of the cave, the wisdom of sages has a role to play in personal finance.  
There has been plenty said about money, the good, the bad, and the ugly. In the New Testament, Jesus is quoted as saying, "it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God".
Not encouraging words for those who might consider themselves religious and rich. I'm no Biblical scholar, but I'd take it as a warning that with wealth comes complexity, and those riches could come at the expense of your spiritual evolution, assuming that's important to you.
It's a bit gloomy for my liking, so I haven't posted it on my fridge. Another musing on wealth from Yogananda contains a similar warning.
"Having lots of money, while not having inner peace, is like dying of thirst while bathing in an ocean."
Now that's a statement I would post on my fridge, if there were room. My partner instead has every square inch of it covered with magnets from his extensive globe-trotting. He's a reasonably wealthy guy, so he has clocked many miles in his day thanks to his wealth, but I'll tell you, when I met him, he was not a happy camper.
Sad, unfulfilled and a bit lost in his wealth. Interestingly, yoga helped him find his way, or at least it helped him to find some inner peace that allowed him to be more comfortable with his wealth.
In recent years, yogic wisdom has enjoyed a revival. It is being mined by everyone from Ivy League scholars and medical researchers, to personal development gurus, and multinationals like Lululemon and Google.
They have encouraged customers and employees to find their zen on the yoga mat or in purpose built meditation rooms and rock gardens.
Eastern philosophy and insights have been dredged up and repackaged for mass consumption. Don't let the commerciality of it make you cynical. Despite the cutesy names and expensive accoutrement, the underlying knowledge is solid. 
To truly excel in the outer world, you need first to go within. It doesn't need to be on a mountain top but if that's the only place you won't be disturbed, it may be worth the journey. 
The knowledge, lessons and experiences I have acquired through the disciplines of Buddhism and yoga now form part of my underlying view and framework for personal finances. It is the unlikely marriage of these two worlds where I find my personal inspiration and where I believe you'll find the buried treasure you are seeking.
It's time to go monk mode.

​When people ask me about money, I always preface the conversation with two points:
Firstly, I can not give you personalised financial advice under NZ laws and regulations. That's the boring bit. While I have over 15 years of experience as a personal finance writer and commentator, I am not an authorised financial adviser. I never wanted to be. Too many other interests you see.
The second bit is more thought-provoking naturally, and it comes in the form of a question. 
I'll ask: "What is your story then?" 
By that, I don't mean how much you owe, where did you go wrong or please tell me your life story.
The question cuts to the heart of all things money, and it has to do with the story that people tell themselves about money. 
Here are some examples, some of which may resonate:
"I've never been good with money."
"I'm uncomfortable with money."
"Money is the root of evil."
"I just can't seem to get ahead with money."
Or my all-time favourite:"
Anyway, money doesn't make you happy."
No, it sure won't do that, but the things you can do with money sure will help. i.e. 
​Buying a home so you don't have to pay rent for the rest of your life.
Having enough money to go on a holiday when you want. 
Not having to work at a job you hate for the rest of your life. Being able to buy the odd nicety for yourself or someone you like or love. So yep, money in and of itself won't buy your happiness. Still, money will afford you some nice pleasures that make life more enjoyable and comfortable.
So the starting point in this conversation is really: "What is your money story?"
You can then table your conscious and later your unconscious tendencies and habits about money, which will undoubtedly reveal a lot about your current position.
You can gain some insight and understanding and start to build a new story and actionable plan with money.
Let's get one thing straight here. While you may be born with blue eyes, you aren't born "bad at" or "naturally good with" money.
This is definitely taught, learned, socialised or conditioned, and it all starts with the story.
So, if your money story is nasty, dull, boring or a nightmare, you will need to rewrite the programme.
I'm not promising that's going to be easy, especially if you've been selling/telling yourself a bad story for a long time, and entrenching a tonne of bad habits on the back of that.
But as long as you keep telling yourself a negative story about money and your relationship with it, things aren't likely to change.
So: "What is Your Story?"
Why not make it a fabulous one.

I'm a big one for exercise. Running, walking, cycling, yoga, gym, whatever, just moving is good for your body and mind.
Researchers at Yale and Oxford Universities found that regular exercise instils greater well-being than more money in your bank account. Read more about that in Business Insider here. 
I'm the last to advise against a gym membership, but I would say this. 
If you aren't going, you're not getting the benefit, and therefore, it is a waste of money. Gym memberships usually cost $25 a week. That's about the cost of a single drop-in session if permitted. So if you're only going 1-3 x a month, you're not getting your money's worth, even if you feel good post-work for those brief times. If you're a sporadic gym bunny, it is far better to pay as you go. Gyms would far prefer you didn't and don't often have this option but some of them do. So find the right fit. Yoga classes tend to offer concessions cards and the more you buy, the cheaper each class becomes. It's a good incentive to keep going, so long as they don't expire!
But back to the gym...If you don't know what you're paying, you aren't paying close enough attention to your finances. 
This week, I was chatting with a friend about money, and she was lamenting the cost of her daughter's gym membership, which she covers. I have zero issues with the bank of mum and dad, and I do the same for one of my sprogs. It's good for their mental well-being, they are super fit kids, and they've encouraged many of their friends to take up fitness because of their impressive beach bods.  It's a good investment in your kids' future and mental well-being.
On top of that goodness, research has also found that if you have the discipline to exercise regularly, it acts like a keystone habit that encourages good outcomes, including better grades, better jobs, and savings. This is detailed by Charles DuHigg in The Power of Habit: Why We Do What We Do in Life and Business. It's a fabulous read. I highly recommend it if you're trying to reset in 2022.
What surprised me about the gym convo,  was my friend said it cost $50 a week! I told her she must surely be confused and that the payments were more likely fortnightly. I double-checked my fees at the same gym to confirm that. She was adamant that $50 was withdrawn weekly for one membership, so I encouraged her to phone the gym ASAP or find a cheaper gym. Sure enough, she reported the next day that they were over-billing her. They fixed it up and said a refund was on its way. 
I'm glad we had that chat, as she might have otherwise been paying way more than she needed to for a long time, when that money could have been repurposed to things like debt repayment. 
During our talk, it also came out that she was paying for two separate insurance schemes that effectively covered the same thing. It appeared that she had been over-sold on the same type of insurance. That is not the usual problem most Kiwis have, one of the most under-insured OECD countries.
As inflation bites hard and interest rates rise, making your money work harder for you is crucial. Complacency in personal finance, and procrastination, are twin enemies you need to defeat to get ahead.
An easy thing to do, to ward off these financial faux-pas is to print off three months' worth of bank statements, categorise all your spending and scrutinise what is coming out regularly. So many services work on a subscription basis these days. That's handy in some ways and helpful too for those businesses, but they might have outlived their usefulness in your life. 
You may have noticed insurance, utility bills, and other automated payments having increased recently without realising it because you didn't read the email warnings. In looking closer, you might have found charges for other extraneous services or stuff you didn't buy, an increasingly common problem with cyber-crimes. I once saw a series of small repeating payments on my Uber account. They were barely detectable because they were so tiny, but they added up. I had to cancel my card and reset the account. 
The point is, if you don't pay attention, you have no idea what you are paying. Now more than ever, you can't afford to have your head in the sand.
Keeping your finances fighting fit requires time, attention and discipline, not unlike the gym. But unlike deadlifts and bench presses, you don't need to be that strong. You mainly need to care enough to look.
I imagine PTs would argue you don't need to be that strong to lift weights, given it's an incremental build up.  Fair enough.
Like most things, consistency is the key here and strength will be the natural outcome whether it's muscle you are flexing or your financial habit.


Disclaimer 
The content of this article is purely informational and should not be construed as personalised financial advice. Seek a registered financial advisor if you require personalised advice. 

If you live in New Zealand, and haven't already set up a MY IR account via Inland Revenue, do so immediately. 
As well as being able to keep track of your income, taxes paid, and KiwiSaver (yes you can track all that via your KiwiSaver provider as well), you can also now easily claim your deductions for charitable donations.
If you don't give to charity, there are plenty of good reasons to do so. If you can't afford it, set a new goal for yourself in 2002 to be in a position to do so. If you didn't already know, you can claim back 33.333% of any charitable donation you make, and that includes those "voluntary" payments you make to school if you have kiddies.
It used to be that to get this money back, you would have to download, print, complete and post a IR526 form to get that money back. In the last few years, the IRD has gone through a massive upgrade to its systems. It is now super easy to file your claims online. It literally takes a few minutes. With all these efficiencies, you can expect to get your money back (straight into your nominated account) within days. 
Here's how you'll do it in 7 easy steps:
1) Gather all your charitable tax donations and receipts in one place for easy reference.
2) Register an account with IR or login in.
3) Click on the section that says:  Donation Tax Credit
4) Click Enter tax donation receipts 
5) Click Add a receipt (see image below for the screen you'll be greeted by).
​

6) Fill out the details of your donation from your tax receipt. If you didn't get one, ask the organisation to provide one. You will 100%  need this information.

7) Upload the receipt where it says receipt attachments and complete the other fields remaining and then submit! Voila. It really is that easy. 

If you don't want the money returned to you,  (yes there are such people) you can donate it back to the charity. That's a nice choice but most people will want the money back. 
This week alone I have filed more than $1,000 in donations and expect to receive back more than $300. Some have already landed in my account which is nice.  
Yes it's a luxury to be able to give and I have been practising regular giving for more than a decade. For everything you give, you also receive, and this goes far beyond money. 
Now what are you waiting for?!
​

It's easy to look at all the things that are going wrong during a pandemic and want to drown yourself in some online retail therapy or a supersize order from Super Liquor, but try your best not to go there.
While it's understandable to feel helpless, hopeless and paralysed to do anything other than binge watch Netflix, Neon or both, being under house arrest also has some advantages.
Spending more time with loved ones, being forced to confront those unwanted but satisfying household tasks like cleaning the garage or closet are obvious ones.
Assuming Covid-19 has not killed off your income, you'll also find this is an excellent time to get your financial act together and save some money too.
All up (factoring in the ferry, bus and car use), takeaways, dining out, and the odd retail splurge, I'm saving at least $600-800 a month. It's only been two weeks in lockdown so far, so I expect I'll be at $1,000, but the time we're out of Level 4.
I'm already a queen of automation, but I'm reviewing my savings allocations into my investments and my son's KiwiSaver accounts. I'm sure they'll appreciate my efforts one day!

Here are some simple steps you can do as well to take advantage of your lockdown savings and or the extra time you have on your hands.

1) Review your overall financial position adding up your debts, savings, and assets.

2) If there is any scope for doing so, consider paying down outstanding debt by upping your contributions or through a lump sum payment, assuming you don't get penalised for it.

3) Look at what your KiwiSaver contribution settings are (3%, 4%, 6%, 8% or 10%) and find out how much you're on track to save by age 65. TIP, You can find this figure on your annual KiwiSaver statement as they include that projection now among the data breakdown.

4) If your KiwiSaver is looking good (i.e. you're in the right fund for your circumstances, making decent returns and not overpaying your fund manager, consider opening up an investment fund. There are numerous investment platforms to get started. Look for one that has low fees that have good UX, with good investment options. Make sure you understand what you're investing in and, notably, whether you can afford it. If you're confused with all the options, check out MoneyHub's comparison site.

5) Plan. If you don't know where you're going, you're not likely to make much progress. Take this time to reflect on your broader goals, why you want to achieve them and what you need to do to get there. It's easy to muddle along in life without having firm, fixed plans, but this is not a good strategy for finances. 

Be ambitious but realistic about what you hope to achieve. If you need support, ask for it. 
In this digital era, there are more resources than you can imagine. Don't use time or lack of knowledge as an excuse not to take the first step toward improving your financial nous.

Have confidence and enjoy the process. Growing your wealth is a multi-faceted endeavour. It's bigger than your KiwiSaver or your investment account. It's daily spending, self-development, education, attitude and concrete actions all working together in harmony.
 
Visit amandamorrall.com for more tips on wealth, abundance and happiness.


Amanda ​

A few years ago, I was the victim of identity theft.
It's taken me about five years to write about it, such was the horror.
Like other crimes, victims often feel they are to blame. My situation wasn't any different. Although lives weren't lost in this particular crime, a lot of money was, including IP,  and 15 years worth of cherished digital memories when my computer memory was wiped clear by an "expert" who didn't know how to do a backup properly.
For years, I felt I was to blame.  I didn't take two-factor authentication seriously when I shoud have. I thought phising scams were only perpetrated on weak, vulnerable, twits who fall for Nigerian prince money scams.
None of these are true, except perhaps my naivety in thinking that people have better things to do other than  phising.
Someone unknown to me, managed to commandeer my gmail account, pour through emails looking for financially sensitive information,contacts whom they could potentially exploit and anything that was remotely convertible into money and or the potential to earn money. I was prevented from seeing these exchanges as they had blocked contacts.
At the time, I had a line of credit through a foreign bank. They managed to forge my signature and execute a total withdrawal of the maximum available with the bank manager responsible, never contacting me once over the phone to verify. In this case $30,000 vanished. 
The same perpetuators took over my blog and website, the domaine and content, and starting selling cheap sportswear off the back of it. Although I didn't fully appreciate how much traffic I had at the time and the value of that traffic, it was stolen. Trying to get it back would have been an expensive and futile legal exercise so I didn't bother and abandoned the fight, and blog for years. Such was the impact of the crime.
These same criminals tried to then steal from family members, by writing to them, from my account (without me knowing) and asking for money. Luckily, they didn't fall for it.
This all occured in the early days of 2FV (two factor verification) and when I naively thought you could only be a victim of identity theft if you left your unlocked laptop or phone out with no passwords. How naive I was.
The crime was so insidious, an IT friend of mine, suggested it must have been perpetrated by someone I knew but no one I know would ever go so far as to sink this low. 
I have long since reconciled this mess (well kinda) but am sharing the story as a reminder to guard that which is precious, (and I'm not just talking about money and houses).  Make sure your email can't be hacked, that everything of value online is secure and don't doubt for a second that internet crimes do exist and it's not just grannies getting fleeced.  Both my partner and I have experienced bank card skimming and related loss of funds in addition to the incident I have described above.
Take all the precautions you are advised to when it comes to identity and financial security, and hold close to you all that you value.  You don't know what you have until it's gone and some things are unrecoverable. 

Cliche but true, you are what you eat, your thoughts dictate your reality and your daily habits define you.
The human body is a sophisticated bit of machinery in its ability to convert food into energy, fat and or waste so you don't become a banana after eating a banana. But as all of us know too well, the image staring back at us in the mirror is a frank reflection of consumption and exercise habits entrenched over time. 
Money isn't that much different.
Whether you're skinny, fat or somewhere in between, your PBMI (personal bank mass index) can't be blamed on bad genes only your accumulated patterns of behaviour.
The mistake so many people make when it comes to money is thinking that it is something foreign and separate from who they are and what they do.  
"I'm bad with money." "I don't get money." "I don't know where I go wrong."  I've heard all the excuses and what unites them tends to be a deflection of personal responsibility.
Money is closer than you think. It is an extension of you; all of you. Your thoughts, your behaviours and daily habits.
It's a scary realisation for some because they're forced to accept that they are personally responsible for their actions. Yes there are some occasions in life when you lose your wallet, you're robbed or make a bad investment decision because you didn't have all the information at your fingertips. But even then, we usually have some part to play in what led us there in the first place.
A more constructive approach to the realisation that you and only you are responsible for your financial health, is that you have the opportunity to do things differently and to effect better outcomes.
It starts with reflection. An examination of where you are now in time, and how you got to be there, and what resources you have to make improvements or changes.
No matter where you find yourself, there is always space and opportunity for improvement. Progress is seldom lightening speed. It starts with motivating goals and aspirations that are executed with slow, progressive, measured steps. No radical crash course diets, rather a gentle introduction of the financial equivalent of fruits and veggies. They may include things like:

• automated savings (if you don't already have them),
• higher contribution rates to your retirement savings,
• accelerated debt reduction plans,
•  reduced consumer spending.  

A combination of these well executed and the resulting confidence will get your PBMI to a healthy level.
Traps to avoid inlcude:

•  a reversion to old (bad) habits,
• self-sabotaging thoughts,
• over spending,  
• under-saving 
• general mindlessness when it comes to your connection to and control over your money. 

If you want to transform your financial life, you can't do it in isolation from the rest of it. 
All that you are, everything that you do, will either work for or against it, depending on your perception AND execution. 
​