Although some of the things they say and do are a bit outdated, when it comes to sound financial planning, grandparents definitely know their way around a balanced checkbook. Not only that, almost everything your grandparents have to say about money is relevant in today’s market. So, with sage advice in mind, here are five financial practices you should inherit from your grandparents:
If You Can’t Afford It, You Don’t Need It Image via Flicker by Kristin Andiron thing grandparents can’t stress enough is the fact that living within your means is the only way to live. Sure, that sports car is nice and the backyard could use a pool, but if you don’t have the cash in hand to pay for luxuries, you just don’t need them. Knowing the difference between needs and wants means being able to afford your needs or being broke because you spent all your money on wants. So, take a tip from your grandparents and live life more simplistically.
Use Credit Cards Wisely Any grandparent will tell you that it’s much more difficult to spend money when it’s hard-earned, which is exactly why credit cards are so financially dangerous. In keeping with the idea of living within your means, you should try to avoid credit cards and the debt that follows when used irresponsibly. Yes, if you pay your credit card balance in full each month, that little piece of plastic is a great way to keep a good line of credit. But, most cardholders pay the minimum balance, drown in the high-interest rates, and end up going into debt.
Always Have a Nest Egg Even if they were only youngsters at the time, your grandparents probably suffered through the Great Depression. And, one of the lessons learned from that financial crisis was to always keep a little money socked away for emergencies.
If you’re not saving, at least, a small part of your monthly earnings now, you’ll be out of luck if you hit a financial rough patch in the future. Luckily, if your savings aren’t that solid and an emergency expense arises, services such as CashNetUSA may be able to lend you the money you need.
Make Your Belongings Last Have you noticed that your grandfather drives the same car he bought twenty years ago or that your grandmother uses a sewing machine from 1946? Well, that’s because your grandparents took care of their belongings so they’d last.
This is a great mentality to have, especially with inflation always on the rise. So, if you keep your belongings in good condition, then it’s a lot easier to make do with what you already have.
Have a Do-It-Yourself Mentality Before there were companies available to take care of your every need, people took care of things themselves. So, if you’re capable, why not take a cue from your grandparents by changing your oil, cutting your grass, and painting your house without hiring a middleman. By inheriting a few of the financial practices above, you’ll live a debt free life just like your grandparents.