Nine Old School Money Management Tips
As a millennial generation heads into their 20s and 30s, many have had either a great or not-so great example of what it means to manage their money. Although the age of careers, job searches, marriages and first homes are approaching, many millennials still have no clue what it truly means to manage money for their long-term success and comfort. Even parents are sometimes shaky resources for personal finance information.
A 2012 U.S. News Money article finds that Generation Xers (who are now in their 30s and 40s) are the generation with the most financial frustration. Retirees are increasingly responsible for their own savings, income, and financial futures. Let’s face it, we all can use an old-fashioned money management lesson every now and again.
Let’s all learn a little bit from past generations, and keep your money flowing with these old school money management tips.
Live Below Your Means
One of the best pieces of advice and most popular money management tips from older generations is to live below your means. Living below your means could mean a number of different things, from cutting out unnecessary bills to finding cheaper, comfortable housing to save money in the long-term.
Many older Americans who lived by that advice are now retired and own their own home (or homes) with minimal debt. Take the time out to find ways to make your life more cost-effective, whether it’s cutting your credit card bills by paying down more or finding a more affordable home where the mortgage/rent will be cheaper. The short-term investment in the present will pay off big in the future, giving you the opportunity to save more.
Stash Loose Change In A Jar After Every Day
One very old school money ritual is keeping your loose change in a jar after the end of every day. It is a great way to see even the change of your money add up, and it could come in handy more than you know. Cashing it out after a year or so could add up to something very substantial!
Savings Come First; Bills Come Second
Older generations take into consideration their savings way more then their bills, which is one of the keys to success with money management. Before they allot a certain amount to luxuries and bills, they made sure they alloted money for their savings, retirement funds, and other important accounts that add up more in the long-term.
Invest Wisely and For The Long Haul
Investing in your first home, stocks and bonds, or even in a fund like one for college are wise decisions when trying to manage your money well for the long-term. In many of these investments, you are able to earn your money back double or triple of what you put out to invest. Make sure it’s an investment you can sink your teeth (and your wallet) into for the long haul, so that when your retirement years are upon you, you are able to not only survive, but continue to thrive.
Always Check Your Bank Statements
Checking your bank statements every month could be time consuming and old school, but well worth it. Make sure you keep up with where every penny is going in your bank account and make sure it adds up accordingly.
Another great old school tip that many of us forget to take heed of is carrying cash for emergencies. You never know when you might need cash versus your debit or credit card for a purchase. But also, a great advantage of paying in cash versus paying with a card is you have a better handle of how much you have spent in real-time.
Buy Quality Over Quantity
Our parents and grandparents usually will keep a pair of shoes, sweater, earrings and other items for years and years, not because of memories, but because of its quality. Also, they know that keeping it in good condition will make it last longer, ultimately saving them money short-term on various pairs of shoes, clothing, etc. Take a few shopping tips from the older generation and shoot for quality over quantity. Also, find reliable services like an eye care specialist, cobbler, and others who can service your clothes and personal items to make them last.
Check In On Your Banking Institution Regularly
Many banks are now charging their customers, even their loyal customers, a service charge that could automatically take $5 to $10 or more on a regular basis. This might not seem like a lot on the surface, but taking $5 out of your account every month costs you $60 a year of your money; $60 that could go into your savings.
Make sure you always check the changing terms and agreements of your banking institutions, and if they have decided to charge you a monthly fee, look for a more reliable bank, like a credit union. Also, always keep tabs on your account’s withdrawals. When it comes to the banking world, ignorance is not bliss on your part.
Determine Your Own Lifestyle Before Advertisers Do
You honestly know there are some things your lifestyle doesn’t call for, like that 42″ flat screen television in your bedroom or your new iPad that’s coupled with your iPhone, iPod and Macbook. Take the time out to analyze what you really need in your life versus what looks good to have. You may not even realize it, but advertising could be having a big influence on how you think you should be living.
What are some old school money management tips you learned from your parents or grandparents? Share your advice below!