It’s not unusual for the young to roll their eyes at Grandma and Grandpa’s free advice on life. The truth is, some of the old fashioned advice dished out by your parents and their parents, still makes sense today.
Free Financial Advice You May Have Heard From Family
Here are 5 old fashioned financial tips everyone should reconsider.
1. If it sounds too good to be true…it probably is.
When it comes to parting with your money, it is essential that you take the time to evaluate all the details before you jump into something. Impulsiveness is not something you want to mix with your money. There are so many scams and con artists looking to take advantage of honest, hard working consumers and unfortunately, such scammers are getting more innovative and crafty with their schemes. But there are ways to avoid scams. Gut instinct often comes into play during those times you need to make decisions. If you feel like something is just not right, then stay away from it. Make sure you learn from the situation, always do your research and learn how to spot rip-offs.
2. Waste not….want not.
Money is tight all over the country. Families are finding it more difficult to make ends meet; buying just the basics can often be a struggle. When shopping for groceries and other household items, plan carefully. Don’t buy more than you need at any time, particularly when you’re dealing with perishable items. Don’t buy in bulk something you have not tried before. Keep rotating your freezer and pantry goods so products do not expire. Also try charitable giving: if you find things on your shelves you just know your family will never eat, donate them to the food bank, church, or local shelter for others to enjoy.
3. It is better to save a penny than earn a penny.
A penny saved can actually earn you money whereas a penny earned incurs taxes and most likely will be spent. Gather your spare change from the couch cushions and the jug in the corner, and count it up. Put it into an interest bearing account and leave it alone.
4. Get out of debt and live within your means!
Setting a budget and a goal to get out of debt takes a lot of work and dedication but it reaps great rewards. If you feel too overwhelmed with your current debt, seek the advice of a professional advisor or a credit counselor and work hard to get your money situation straightened out. You can control your household budget by applying discipline and following saving strategies and budgeting ideas. Once you are debt-free, budget your money and set new goals so you can live your life below your means. Getting yourself out of debt is a lot of work but keeping yourself out of debt can be as easy as you make it. Remember how it felt to live with the burden of debt and vow to never do it again.
5. It’s alright to have an occasional treat.
Living on a budget is tough, especially if you are just starting out. Changing your habits and daily life can take a toll on your spirit and it can get a little depressing. Too much of a good thing may not always be good (or sustainable) so it’s okay to treat yourself every now and then. Acknowledge your own achievements and reward yourself for reaching your goals. Just keep the rewards reasonable and within your budget.