Learning how to manage finances is a lifelong process. Here are five dad-approved tips to help you manage your money better!
Let’s face it, financial advice from fathers is usually beneficial. My grandfather had seven sons, the third of whom was my father. Obviously, growing up in such a large family was not easy. My grandparents, on the other hand, did an excellent job of preparing seven young boys for life.
My father came to Calcutta from our hometown in the 1980s. He has bought a house, raised a family, and enjoyed a nice life.
While growing up, we faced our share of financial ups and downs. My father never told me about it, but he instilled in me the value of financial stability.
This year, Father’s Day falls during a time when the world’s economies are struggling, geopolitical confrontations are escalating, and global indices are in the red. It couldn’t have come at a better moment for some classic financial wisdom.
In this blog, I have penned down a few timeless lessons about money that I learnt from my father. On a lighter note, I sincerely hope that you follow the advice here because I am still learning how to get my finances right and if I had followed his words, I would definitely be richer.
1. Cut Your Coat According To Your Cloth
It simply means doing as well as possible with the limited money you have. We live in a world where we are constantly trying to get bigger and better at everything. The idea does make sense in a lot of aspects of life, but we tend to stretch for our materialistic pleasures. That’s when it becomes a problem. We fall into debt traps trying to outdo someone else’s new phone or car. The rule is simple: if you don’t have the money for something, don’t buy it unless it is necessary.
Additional Reading: Talk Finance With The Kids
2. A Penny Saved Is A Penny Earned
Life can be full of surprises. Five years ago, we probably wouldn’t have thought that the world could come to a standstill due to a disease, but here we are. And that’s why he always asked me to save. The smallest of savings put away on a regular basis builds up into a large pool of money.
3. Work Hard And Smart!
It’s essential to realise the link between working efficiently and earnings. He always encouraged me to improve my work efficiency since the more efficient you are, the more productive you become. He is a firm believer in the idea that working smartly makes one irreplaceable. It pays to be irreplaceable, and that goes a long way.
Additional Reading: Is Financial Security The Same As Financial Stability?
4. Make Money Work For You
Uncertainties and emergencies don’t come knocking. So he always taught me about channelling money into different investment channels. Yes, one may keep a Credit Card or opt for a Personal Loan for unforeseen situations. However, those routes should only be taken in extreme cases. That’s why it is important to invest some of our earnings into stocks, mutual funds, bonds, etc. Investing money simply amplifies the chance of making more money out of your savings.
5. Don’t Fear The Future, Prepare For It
Your present decides your future. Setting long-term goals and devising plans to work towards them will ensure that you secure your future. For many, buying a house could be one such goal, and realising such a dream requires some planning. Even taking up a Home Loan requires meticulous planning. So he always stressed how important it was to plan finances.
This Father’s Day, let’s all strive to get financially wiser and be more mindful about money.
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