Six Financial Concepts I Wish I Had Understood ThirtyYears Ago
57Hindsight is 20/20
My regrets are many when it comes to the way in which I have handled the money that has been mine to manage. Looking back just makes me feel sick to my stomach so I'm going to look to the future by sharing some simple truths that could have changed my life in a very positive way. Pardon the pun.
1 - Live on Less Than You Make
Simple concept. Hard to do. Especially in our credit crazed culture.
2 - Give
This is counter intuitive I know. It's just one of those mysterious reactions of the universe. If you cast your bread upon the waters it will come back to you.
3 - Save
Pay yourself first. How many times have I heard this? It is so cliche' and easy to ignore. In looking back, even not considering interest, I could have accumulated hundreds of thousands of dollars over the past thirty years.
4 - Be the Boss of Your Money
Where does your paycheck go? Is it spoken for before you even get it? Develop a spending plan. Yes, that is a lot like a budget. Okay, it IS a budget. A budget is a plan that helps you to prioritize what your money does for YOU.
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5 - Don't Believe the Myth of "Easy Credit"
It may be easy to borrow that money but it is going to be HARD paying it back. It may be okay to borrow for a house, if you have a good down payment. Rule of thumb: Don't borrow to purchase anything that will depreciate. Having a credit card for "emergencies" guarantees emergencies. So what do you do? Refer to #3.
6 - Be Accountable
If you are married the partners should be accountable to each other. If you don't have a "built-in" partner find someone who shares your values and is a good money manager. Work together in developing a budget monthly. Consult your spouse or partner before spending whatever predetermined amount the two of you decide is reasonable that is not in the approved budget.
Set Your Sights on the Future
These six guidelines will go a long way in preventing financial troubles, but it is only a very basic outline. Money and the decisions regarding investing, insurance and other purchases or savings can be very complex. Learn as much as you can about money and how it can work for or against you. Take good care of your money and it will take good care of you! I wish I had known HOW to do that.
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Thank you barbergirl28. It's good that you know good money habits but it is easy to slip. It's also very difficult to manage money in a marriage when you can't come to agreements as to goals and how you will achieve them. I hope you both will soon be back on track!
Well done... like you, I wish I had learned these principles 30 years ago!! cheers dags
I know exactly what you mean. I wrote a similar hub on money management. Great hub.
Thank you, Phoebe Pike. It would be wonderful if the young folks would start out with this kind of plan.
Hey U Neek,
Thank you so much for your honesty here. I've always worked in professions that give me a sense of value but not so much in terms of money. Even still, I feel the way you do; it would have been so much better with hindsight. Great hub!
That good ole hindsight. Sigh. Even with a modest income, a plan and compound interest could have made me a lot more financially secure. Live and learn! Thanks for reading!!
Great tips and such words of wisdom. The older I get the more I find I'm trying to get rid of "stuff" I don't know why I bought in the first place. Less is more, and giving is definitely better than receiving!
Thank you dearabbysmom. I'm into decluttering these days and wondering why I thought I needed all this stuff!
barbergirl28 Level 8 Commenter 15 months ago
Good advice... I have always been good with my money and used to follow very similiar guidelines. My husband however is horrible with his money. Because he is so bad, I have slacked on my good money behavior. Now I really need to get back to this!
Great hub - thanks for the reminder!