Finance

The best financial advice I got from my mom


Everyone knows my mom is always right. But on Mother’s Day, we can all use a little reminder.

We talked to some of our favorite financial experts about the best financial advice they’ve ever received from their moms — and how you can apply that wisdom to your own life.

Why should you wait before buying something

When CFP Nate Nieri from Modern money management Small, he saved enough money to buy a video game. He asked his mother for a ride to the store to buy it, but she wouldn’t take it unless he waited two weeks to make sure he really wanted it. As his mother had predicted, he changed his mind before time was up.

“It was a very valuable lesson in impulse buying and patience, something that really stuck with me,” he said.

How to apply it: The general rule is to wait at least 24 hours before buying something or up to a week if the item is particularly expensive. Add it to your wishlist or a private folder on your browser and go away. You’ll likely forget the item—and if you don’t, it might actually be worth buying.

Plan your meals ahead of time

Mindy Jensen, hostess”BiggerPockets Money PodcastHer mother told her, “Always know what you’re having for dinner by 8 in the morning.”

Jensen received this advice when she was a housewife and forgot to plan dinner until late in the day. Usually, this means get food Or go to a restaurant.

How to apply it: The advice sounds valid, whether you’re cooking for a family or just for yourself. If you can plan dinner first thing in the morning, you won’t be tempted to get your DoorDash at 6 p.m. Starting in the morning gives you enough time to defrost something, toss a chicken breast in the slow cooker or run to the grocery store for ingredients.

Set specific savings goals

Ricardo Pina humble wallet He said his mother always asked him to provide a certain item, rather than hiding the money just because it was the responsible thing to do.

“Whether we’re saving money to buy a new video game or a new bike,” he said, “she used to say that when you have a savings goal, saving is more fun.”

How to apply it: Set a savings goal in Mint. Every time you transfer money to your account called Trip Italy, for example, you’ll remember why you saved up in the first place.

If you’re saving for retirement, get a clear picture of what kind of retirement you want. Whether you live in a Tahoe cabin or a Florida beachfront condo, a more specific photo will make it easy to memorize.

Start saving early

Marcus Jarrett, authordebt free or die tryingHe said his mother encouraged him to start saving early by taking him to open a savings account at the age of 16. And when he got his first job at a movie theater, she agreed to match what he saved in his first car.

He said, “At the age of sixteen, I saw and already understood the value of the ’employee match’.

How to apply it: If you have access to an employer-sponsored retirement plan, you may receive a company match. This means that the company will contribute money to your retirement account, usually up to a certain amount. Always contribute enough to win the full company match, because it’s basically free money.

If you are a parent, you can also use this strategy with your children by matching every dollar they save. It will encourage them to save more, because every dollar they put in will double.

Do not depend on future profits الأرباح

Jacob Wade I heart budgets He said his mother-in-law gave him some crucial advice when he and his wife first got married: Always live on last month’s income.

“It changed everything for us and helped us avoid the daily financial stresses,” he said.

It took him and his wife six months to generate a full month’s income, but it was worth it. Even after 13 years, they’re still living off last month’s earnings.

How to apply it: Having a month’s worth of income in the bank means you won’t have to wait for payday to take up your bills. If you are self-employed, this is especially important because clients can pay late. If you have enough money in your checking account, you don’t have to dip into your savings to make the rent.

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Zina Kumok (125 posts)

Zina Kumuk is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four, and everything in between. Featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 of student loans in three years at Conscious Coins.

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