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5 Money Lessons You Probably Didn’t Get From Your Parents

19 January 2016 No Comment

canstockphoto9895017Many of us learn about money and how to handle it from the way we see people around us using it. For many of us, we weren’t taught about how to be smart with our cash, we looked at what our parents were doing, we thought it seemed ok and implemented it for ourselves. Far too often, this model doesn’t work out, because what worked for them, or didn’t work for them, certainly doesn’t work for us.

So let’s take a look at some money lessons and tips, which we most certainly didn’t get from our parents, which will go a long way in helping us with our finances today.

Use cash – When it boils down to watching your money and not overspending, the simplest thing to do is to use cash. In our world, the little plastic credit card is the “go-to” favourite that we swipe each time we want to buy something. Yes it certainly helps to make life more convenient, but it almost always comes with a major surprise at the end of the month, when we are hit with a credit card bill that is way beyond what we can afford. Spending cash instead of swiping your card, helps you keep track of your spending, not to mention, it’s far more difficult to part with your bills than to swipe your card.

Money certainly keeps the world spinning! In order to stay on top of your finances, it’s time to sit down and draw up a monthly budget if you haven’t already. Knowing your income and your monthly expenses can help you to direct your spending and cut back on the unnecessary spending. Be honest when it comes down to your necessities and your luxuries, and you’ll start to notice that cutting back on your spending is not as hard as it seems.

That’s not to say that you should spare the expense on some fun or luxury. But instead of buying “stuff” and the latest gadgets, spend your money on an experience! The memory and enjoyment will far outlast the latest trend and the costs will be fewer and far between.

If you are living from paycheck to paycheck, then it’s definitely time to start saving!. Instead of having to scramble for money in a time of concern when we are faced with unexpected expenses, start socking away some extra cash each month and slowly build up a little cushion that you can fall back on when times are tough. If you don’t have a lot of room to play with, try saving even a very small amount each month, by putting it into your savings first, before you make any other financial transactions! That way, you’ll know you’re covered.

It’s never too late to start putting away money and to save for your pension! As life expectancy gets longer, and the retirement age stays the same, make sure you’re putting enough away now, to maintain your lifestyle and live well in your golden years.

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