It’s always our father who gives us the very first lesson in managing finances that forms the foundation of success
Do you recall those money lessons your father instilled in you when you were a child? It could be an investment tip or a monetary management hack that you swear by now. He taught you financial discipline and how to take the responsibility of managing your finances. Undeniably, those were some of the best financial lessons that you learned from your dad at an early age.
Fathers have indeed taken responsibility for your financial security and well-being, which also extended their role of teaching you how to sustain yourself when you are on your own. In addition to inculcating the basic values of sharing and giving, he certainly taught you important lessons on financial management and freedom.
So, this Father’s Day, let’s reflect on a few key pieces of financial advice that your fathers gave you.
It’s never too early to start saving
One of the invaluable money management tricks your father must have spoken about is the act of saving. He must have advised you on how to begin saving a chunk of your salary, from the very first paycheck. The basic understanding of investing in a mutual fund or opening an FD account usually comes from him. Plus, as a kid when you would have aspired to buy something, he must have encouraged you to work towards the goal by saving up.
The art of creating a budget
As a kid, you must have observed your father creating a monthly budget by including and excluding certain items from the list of spending. So, living life under your budget is hinted at from an early age when you were not always allowed to buy toys just because you wanted them. Thus, your father must have advised you on how to balance your expenditure and savings. He must have taught you how to create a budget while differentiating between wants and needs. These will help you build smart spending habits as you start managing your finances.
Judiciously invest in yourself
Did your father tell you to invest in the right things? For instance, when you start earning, of course, you sometimes have the urge to go shopping, buy gadgets, and so on. While you do that, a few investments you can make are in learning a new course or skill. You can also save up for your post-graduation if you wish to pursue it.
Avoid getting into debt
One of the key lessons your father must have shared is ‘don’t be a defaulter’. Truly, this piece of advice goes a long way. From paying your bills late or rather not adhering to the concept of timely payment, several unpleasant scenarios can arise. Therefore, timely repayment of money is one of the techniques to avoid falling into a hole in debt. Also, he must have emphasized you on having emergency savings for those “just-in-case” situations.
Financial knowledge
You must have noticed your dad patiently asking several questions about a payment scheme or a personal loan. He does massive research before making even the smallest investment. This is important to note that you do the same when you are planning to apply for a personal loan or a home loan. So, keep brushing up your financial lessons.
In conclusion, it is, therefore, fair to mention that your father’s reiterated pearls of wisdom are helping you and will continue to help as you walk the path to financial freedom. No doubt, these lessons will always come in handy in your life.
The author is the Co-Founder of Junio
DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.