Did Your Grandparents Have A Financial Adviser?
The answer to this question is probably no. Yet, most grandparents of people I know were in pretty good financial shape. I believe this all comes down to the fact that that generation (our grandparent’s generation) was much more frugal than us. Personal finance was just common sense back then (and should still be today). They didn’t need a financial “expert” to tell them how to manage their money. They just did the common sense personal finance things that too few of us do today.
Our grandparents for the most part succeeded in the following areas:
- Working hard
- Only buying this that they could afford
- Avoid debt
- Saving money
Notice, the following things were not on that list:
- Start a business
- Make huge gains in the stock market
- Killed it in real estate
No, our grandparents did the basic things and they did them well. They didn’t need a financial adviser to tell them how to spread their capital across asset classes (the idea that everyone should be fully invested in stocks came later).
Furthermore, concepts like debt consolidation would have probably been ludicrous for our grandparents. Someone else is going to get me out of debt? They avoided debt altogether.
The biggest thing is that they lived within their means. Many of our grandparents went through the Great Depression and knew how to buy only the things they needed and get more than their money’s worth out of them. Contrast this with the short product life cycles of today the masterful advertising which make us buy more and more stuff all the while saving less and less.
Then, we go off and spend money on a financial adviser to help us find creative ways to make up the difference. It’s time to throw out the adviser and get back to grandma’s style of personal finance: buy only what you need, use cash and save your money.