I believe deep down all of us that have a Dad or dad figure present in our lives we want to learn from them. We want to learn life as well as how to manage or budget money. I have great respect for my dad and the way he always took care of us as a family and how he tried to share his advice on life and especially when it came to money. He had to work hard and earn every penny, due to this he made sure to take care of it wisely. During my life, I am sure he tried to teach me more than 5 money lessons, but these are the 5 Best Money Tips I learned from my Dad. I hope these tips will help you with your money management and saving as it did me. Money discussion can get a little serious so make sure to check out our 10 Best Dad Jokes to lighten things up a little.
5 Best Money Tips:
- Save for a rainy day. – Start saving as soon as you can no matter how much or how little it is. Start as soon as you can with this money tip, maybe it’s only a $1.00 or $10.00 from a paycheck. That’s better than nothing. Sadly many in the USA live paycheck to paycheck but if we would plan and save it wouldn’t have to be this way our whole lives. So whatever it is whether it’s pennies or dollars start saving and do it consistently. Ten dollars saved for 52 weeks becomes $520! This saving can be done first in a basic savings account, then once you have enough there you can look into investments like stocks and a 401k. One great bank to start a savings account with is Ally as they offer competitive rates with ease of online use.
- As much as possible pay with Cash. – Unfortunately these days just about everything can be financed either by credit card or a loan. My Dad instilled in me that if you don’t have the cash to pay for it with rare exceptions then save up until you do. Too many of us are financing everything from our phones, furniture and sadly even our wardrobe. You win by paying with cash because you have no interest you are paying on what you bought. This means it saves you money. Only paying with cash also helps to be a natural budget constraint as well if you stick to it. This way if you don’t have the cash you don’t buy it. There are some exceptions in life when debt may be required, I will discuss those next.
- Only use Debt when necessary. – Necessary for some means that a new pair of shoes or the latest iPhone. This isn’t necessary as much as you may think it is. Things that fall into necessary, a house, a Car, and a college education. Even in these instances if you can pay cash that’s awesome. I would say this is the best money tip my dad gave me. I know for some being debt free won’t be achieved until later in life and that’s ok. When you take on Debt make sure you can afford it even if something bad happens. I have seen too many people maxed out with their house and car payment that they can’t afford groceries. This tip is to help you avoid this. This may mean you use debt to get a house but that doesn’t mean you buy a massive dream home. Look at what you and your family make and buy according to it, not just based on what you want. I will say this again save up and pay as much as you can in Cash, in the long run, you come out ahead. Think of it this way most peoples mortgage accounts for 30% of their expense. What if you really focused on it and paid it off early. Each of those extra years you now have 30% more income to use elsewhere.
- Always carry some cash on you. – I know in today’s society people carry cash less and if at all, but that doesn’t make it right. Sadly I have been in instances over the years where having cash was a life saver. One instance, I was traveling back home through Louisiana and my gas light came on and the nearest gas station was 10 miles away. I made it there but their system was down and was only taking cash. Luckily for me, I had some cash on me and was able to fill up and get on my way. If I wouldn’t have had cash I would have been stranded there until the system came back up. This doesn’t mean you have to carry a lot on you but always try to have $10 to $20 on you.
- Enjoy your money. – While my dad never sat me down and talked with me about this lesson, he lived it out. My dad worked hard but he also tried to give us a life he didn’t have. He would take us fishing, hunting, on trips to events or professional ball games. These weren’t everyday occurrences but looking back I know these were things that cost sometimes significant amounts of money. He spent it because he knew it would create memories for our family. You don’t have to go crazy and spend thousands on a trip across the country. Sometimes it is spending $20 on gas and bait and going down to the river fishing or spending more on an ocean guide to put you on the big fish. Either way we work hard to pay the bills and have a little fun with the rest.
These are 5 Best Money Tips I learned from my Dad. These tips I have done my best to apply them in my life. There have been some times I stumbled along the way or didn’t live by them, but I did learn from them. I will do my best to pass these money tips on to my kids so they can make the best use of the money they make. Do you have a Money tip or savings tip that you want to share leave a comment and let us know.