Most of us would relate to the fact that our grandparents (for some, even parents) had enough stories to tell. Stories of how they survived the financially tough times of their life. These wise and valuable lessons taught us the importance of valuing money.
Here are some worthwhile lessons from yesteryears that could come handy to us and our generation next…
- Live within means and save for emergency
Having lived through some very difficult times, our grandparents very well understood the pain of not having money when you needed it the most, and had invented the idea of ‘Emergency funds’ for a reason. They always made sure to place some share of the income aside - 'just in case'.
So if we are 'living a champagne lifestyle on a lemonade budget’, it is time we stopped, and got into the habit of regular savings like our grandparents, and invest in the right opportunities. This also includes putting aside some money for emergencies. - Be patient
Investing requires patience, more than you think! Although a rare virtue today, but when our grandparents initiated an investment, they never ever thought about withdrawing. They stood patiently as their wealth continued to reach to its handsome maturity proceeds.
Today, with people actively investing in SIPs, Mutual Funds, etc., this advice holds even greater relevance. The lesson to remember here is, never break your investments unless absolutely necessary; and while investing in a volatile market, stay committed to see the investment through the worst times. - Add new debt only when you can afford it
With banks competing with each other to attract more and more business, taking a loan has become easy and quicker than ever. In no time, the money is sitting in your account. What we tend to forget is that if our EMIs eat up too much from our earnings, critical financial goals like retirement planning, kids education, investments, could take a hit.
The lesson here is to avoid unnecessary debts. Never take a loan impulsively, just because it is available easily. Take the ones that you have planned for and can easily repay.
Remember to act on the money lessons you would wish to pass along to your grandchildren!