By Colin Long and Daniel Trevethan
Money talks and the conversations it starts can shape our lives in profound ways. For Consolidated Wealth’s Colin Long, who now has a grown child of his own, and Daniel Trevethan who is still in his 20’s and just starting out, the lessons they received about managing money from their fathers continue to influence their financial habits and decisions today.
Here’s a look at the essential wisdom that has been passed down to them by their fathers:
- Live Within Your Means
“Don’t buy things you don’t need, with money you don’t have, to impress people you don’t like.” This nugget of wisdom is about restraint and authenticity. It’s about making choices that align with your values rather than the expectations of others. By focusing on needs over wants and avoiding unnecessary debt, you will build a sustainable financial foundation. - Budgeting: A Daily Affair
Budget and track your expenses every day. With budgeting and a daily tracker in place, you can take control of your financial well-being and destiny, one day at a time. Daily budgeting will also help you become more aware of your spending habits so that you can prevent overspending and identify areas where you can save. - The Rainy-Day Fund
One of the most crucial financial practices is setting aside a little money each month for emergencies. This rainy-day fund acts as a financial umbrella, ready to protect you when unexpected expenses arise. It’s a buffer against life’s surprises, preventing them from turning into financial crises. Whether it’s a sudden medical expense or an urgent home repair, having an emergency fund provides peace of mind and stability. - Tithing and Generosity
Being prudent with your spending enables you to be generous with others. This principle highlights the importance of mindful resource management. By avoiding wasteful expenditures, you can support charitable causes and help those in need. Generosity, in turn, enriches your life and nurtures a sense of community and purpose. - Have an Investment Strategy
Investing wisely is about balancing caution with calculated risks. A sound investment strategy focuses on long-term financial goals while allowing for some aggressive investments with surplus funds. This balanced approach ensures your capital grows steadily over time, securing your future while taking advantage of opportunities for higher returns. - Beware of Too-Good-To-Be-True Schemes
Avoild get-rich-quick schemes. They may look great, but if they’re too good to be true, they probably are. Valuable investments take time, so start early and invest wisely. This lesson teaches patience and diligence, reminding us that genuine wealth building is a gradual process requiring careful planning and perseverance. - Delayed Gratification
The concept of delayed gratification is best explained with the marshmallow test, a famous psychological experiment where children were given the choice: they could either eat one marshmallow immediately or wait for a short period and receive two instead. Researchers found that the children who could delay gratification tended to have better life outcomes, highlighting the long-term benefits of patience and self-control.The lesson here is that by resisting the urge for immediate rewards, you can achieve greater gains in the future. This approach is crucial in financial management, where short-term sacrifices can lead to significant long-term benefits. Whether it’s saving for retirement, investing in education, or building a business, the ability to delay gratification is a key factor in achieving lasting financial success.
To make the most of your money, make use of the free financial technology that’s so readily available! With free tools like banking apps and other modern technology, you can access structured budgeting solutions that simplify money management. These tools offer convenience, accuracy and real-time tracking, making it easier than ever to stay on top of your finances.
Conclusion
The lessons that we learn from our fathers are more than just about money; they’re about life. They teach us to be thoughtful, responsible and forward-thinking. So, as you navigate through your own financial future, keep your father’s wisdom as your compass, guiding you to a future of wealth creation and growth.
