Like most parents, mine were fond of imparting nuggets of wisdom to us. Whether we like it or not, we have to listen to the Hallmark-worthy quotes for every occasion. Be honest! How many times did you roll your eyes on your mother or father as they scold you in front of your friends?
Well, it turns out that some of their financial lessons are beneficial. You can either learn from their successful stories or their wrongful moves. With that said, here are “4 Times Your Parents Were Right About Money”:
DO NOT PUT ALL YOUR EGGS IN ONE BASKET
This statement does not refer to organizing your grocery items. Instead, it refers to the piece of advice that argue against putting your resources in one object or individual. My parents were right when they told me to embrace all the job opportunities while I am still young.
The technical term for this act is diversification. Not diversifying has its drawbacks. Diversification, according to Nobel Prize winner in economics Harry Markowitz, lowers the risk of loss and increases the chances for success when investing. You may apply diversification in other aspects of your life.
For instance, avoid pouring yourself to the workplace as you may neglect your physical health and emotional sanity. In friendships, you must devote your time to several people to create a personal support system or a business network.
MONEY DOES NOT GROW ON TREES
“Money does not grow on trees!”, exclaimed my father. I cannot recall how many times these happened to me as a child (who just wants to collect Barbie dolls). Oh! Hearing these words translated to our mother tongue had a stronger impact. I am sure that some of you had the same experience. As you read these words, your parents’ voices may echo in your head. You are not alone.
The idea of quick and easy cash may appeal to most of us during our childhood, but the real world does not work like that. Earning money takes determination, time, and effort. This is why you must not waste your money on things that you do not need. Teach the value of money to new generations as well.
Furthermore, it is practical to establish your own emergency fund should an unexpected event arise. Consider this “Clever Ways To Build A Sufficient Emergency Fund“ article as a guide.
SPEND WITHIN OR LESS THAN YOUR MEANS
Spending within or less than the bounds of what you can afford can contribute to a stress-free life. I know this lesson sounds utterly obvious. However, some people do not understand the principles of cash flow. A number of Singaporeans are not afraid to whip out their credit cards to buy items that they cannot afford at the moment.
My cousin’s parents understand the prowess of a credit card. So, they did not allow their child to get one. You see, they believed that it is not a good idea to purchase something when you do not have enough cash in the bank to afford it. My cousin has to keep saving money until he could afford the thing that he desires.
You may argue that you cannot shop online without a credit card, but you can use a MasterCard or a Visa debit card. Spending wisely is a good practice to impart to your future children.
PATIENCE IS A VIRTUE
My mother is patience personified! Her actions taught that overcoming instant gratification is important to financial success. Impatience costs people cold hard cash.
If you are willing to wait instead of purchasing immediately, you are able to compare prices within other shops and to find cheaper options. Practicing patience gives you the opportunity to wait for the greatest sales, huge markdowns, and bargain deals that will help you save a lot.
There are many ways to improve this virtue. You may employ breathing techniques or visualize how long you will wait while in a queue.