Financial Lessons From My Grandparents
The saying of respecting your elders is always seen as a rule of thumb, but they can often give you life-changing advice that you can pass on to your children and your children’s children.
Here are some financial lessons that you can take from your grandparents, and how you can still use them in today’s society.
Use physical cash – It’s easier to keep track of your expenses, how much you actually spend each month and there’s your own peace of mind as well. It also allows you to be more disciplined in how often you splurge on things you don’t necessarily need. Then, if you feel you’re reaching your limit in terms of how much you’re spending then you’re able to figure out quickly where the problem lies in your spending.
Physical cash is harder to part with. If you are trying to manage your money it’s best to withdraw cash from an ATM once a month. It’s easier to keep track of.
Plan for the long term – If you’re planning on having children or already have children you can start saving for their future studies. If you’re eager to have that house you’ve always wanted or a car that dreams were made for then you should plan well in advance.
It goes without saying, but preparing yourself for your future expenditures pays off in the end, and it allows you to work towards a great goal.
Buy good quality – The old saying of quality over quantity never fails and you should follow it throughout your life because more often than not it pays off. Sure, it tends to cost much more than the cheaper version that will inevitably break in the coming months, but they also have a much longer shelf life.
Save a few extra dollars a month and aim for that better quality washing machine or television. It could end up being much cheaper to maintain in the long run.
Keep your fixed expenses as low as possible – A fixed expense is something you can’t cancel. They also don’t change at all throughout the time you pay for them, so no matter what you’re earning you will always be paying the same rate.
Back in the day things were much different, and your grandparents probably did things much differently. They might have lived a non-credit-dependant life that would have insulated them from financial problems if one of them lost their job.
If you’re leveraged to the hilt and something goes wrong, you won’t have any wiggle room. You may have to sell your assets in a hurry and for less than they were originally worth just to get by. To disaster proof your finances, reduce your fixed expenses as much as possible.
Fun can be frugal – The best things in life are often free, and with that in mind you can go about having a good day without spending some or even none of your money. Having a BBQ or a movie night with your friends can save you heading to the cinema, or that expensive meal in town.
Other things that are free of course vary, from exercising in your neighbourhood to taking your kids to the local park. You can also get involved in community activities like choirs, tennis clubs, church, etc. You don’t need to spend a lot to have a lot of fun. You can also focus on people and relationships that can pay off down the line.
Values – Your grandparents probably have their values a little different than many people today. There was a time when if you held down a steady job, paid your bills on time, had polite children, a modest house in good repair, and a good reputation you could hold your head high. Now the demand is much higher thanks to changes in the economy.
You can learn a lot from your elders about values and how they can coincide with your savings. Even though some methods have since changed they can still offer you sound advice that can be used today in the way you control your finances.
Teach others – Keep the younger generation informed about how to save money, then the learning process never dies. Your children can then go on to teach the next generation, and so on and so forth.
The most important thing to remember is that we will be teaching the next generation, which is why a set of rules can often be more powerful to you or your children or your friends than you initially thought.
Do you have any financial lessons you want to share with your friends and family?