Valuable Money Lessons Passed Down from My Mother
I talk more about my mother because most of my life was spent under her wings. My father died when I was in my first year of high school.
Growing up, my mother was that role model who taught me about money and how to save. Thanks to her, and many other books and teachings I later sought as an adult, I am now able to manage my money wisely and make sound financial decisions.
One of the most valuable lessons my mother taught me was to “never eat what I did not kill.” In other words, I was taught that I should never spend money that I do not have. For example, because I grew up selling and most of the time with her, I would not be allowed to buy food if I had not made a sale that day. I had to make a sale for that day for me to say, “well now I can buy the food I love so much…” As a grown-up, I now understand that also meant I should not rely on consumption debt. Consumption debt is almost the same thing as spending tomorrow’s income today…
Another valuable lesson my mother taught me was the importance of setting financial goals. She encouraged me to think about what I wanted to achieve with my money: whether to buy a new bike or save for college. By having a clear idea of what I was saving for, I could focus on the long-term benefits of putting money aside, rather than just the immediate pleasure of spending it.
My mother also showed me “slow progress” without debt. My mother has several properties to her name. She took time to develop some of them. But all of them were not funded by debt. Of course, as an adult, I now understand that I can leverage debt to my benefit. But, I still appreciate this lesson and apply it to my short to medium-term goals.
Another lesson my mother taught me is the importance of budgeting. Although she didn’t have a complicated spreadsheet or advanced App, she had a way of tracking her income and expenses in a little notebook. At boarding school, without a notebook, I would be able to manage my pocket money to last me for a more significant part of the school term. Now as an adult, I use a simple spreadsheet to track my goals, income and expenses, and to identify areas where I could cut back on unnecessary spending. Also, every month, I review my bank statements. By doing this, I am able to identify things I can correct in the following month or things I am paying for that I shouldn’t be paying for. Also, I learned how to live below my means and avoid debt, which has been a valuable skill to have as an adult.
Another lesson my mother taught me was the importance of saving regularly. She encouraged me to put a portion of my allowance or earnings into a savings account each month, no matter how small the amount. By making saving a habit, I learned how to prioritize my long-term goals over short-term wants.
Most of the things my mother achieved happened after she became self-employed. Even though self-employment is not for everyone, for me, it taught me the importance of having additional sources of income.
Finally, my mother taught me the importance of being patient and disciplined when it comes to saving. She showed me that saving for a big goal, such as a car or a house, can take time and require sacrifices along the way. However, by staying focused and committed, it is possible to achieve even the most ambitious financial goals.