Wow, when I saw this it certainly brought back some vivid memories for me. How about you?
If you're a Baby Boomer, then a lot of you probably had the same warm feeling when reading this quote...am I right?
I say this because the Baby Boomer generation's parents were from the generation that lived through life changing events like World War I, World War II and The Great Depression. It was a generation that learned very quickly, especially during the war years and after The Great Depression the true value of a dollar.
Those of you who are not Baby Boomers might recall your parents and also your grandparents instilling some sound financial wisdom upon you when you were growing up. "Make a budget, stick to it and no matter what, always 'pay yourself first." (10% of your earning was usually the base). However, the most important habit to instill within oneself is to be consistent on whatever amount you decide to save and do it on a regular basis.
Isn't it intriguing how each generation's [ Bob Hope, Baby Boomer, Gen X, Millennial, Gen Y] value of the dollar has vastly changed? "What happened over the decades since the early 20th Century that's caused the poor dollar's demise?
No, the good ol' dollar isn't worth nearly what it used to. It's buying power has significantly diminished over the decades. There used to be the 'Penny Store'; then the' Five and Dime Store', now we have the 'Dollar Store'. Today's dollar is the 'new dime'. Scary, huh?
One significant 'beast' that keeps chopping and chopping down the value of our wonderful dollar's buying power is INFLATION.
Just as Dinah Shores' father told her, my Dad told me and my sisters, and I know almost everyone reading this right now has heard this at some point in their lives growing up from your parent, grandparent or may be a great grandparent... "Spending money wisely means spend less than you earn and save or invest the remaining wisely."
A lot of you are probably saying, "Can't be done in today's world!" I beg to differ with you and say, "Yes it can".
One of the tremendous challenges we have today versus the challenge of doing this in the early and mid 20th Century, in my opinion, is the huge introduction of technology into our lives.
Do you realize how technological communication via radio, television, Notebooks, iPhones, and Notepads bombards our heads constantly with wonderful items to buy along with why we need to buy them?
The results are devastating!
With each generation, the desire for acquiring these wonderful 'items' exceeds the ability to pay for them.
Why aren't these same technological platforms shouting to us to "save...save...save" instead of "buy...buy...buy"?
Plus to add fuel to the fire of the buying frenzy, these technological platforms also go the extra mile with offering easy 'opt in' credit cards, easy access to loan companies where one can borrow from $100 to thousands of dollars. It seems almost impossible to stay financially afloat, especially when we throw into the mix, that today the cost of living for many exceeds what they are earning.
If the money isn't in your wallet, or bank account, it can be easily acquired through a loan which can be easily accessed via the internet or by using your credit card.
Guess you ask then, "How does one get back on track to the good 'ol fatherly advice of "spend less than you earn and save or invest the rest?"
Check yourself, "are you spending money wisely?" Spending money wisely means that YOU have control of every dollar you earn. You take the responsibility to intelligently delegate your earning by saving a designated portion FIRST consistently. These funds will one day allow you to live a comfortable lifestyle during your retirement years and if vested correctly will allow you to pass a legacy down to your heirs.
Be sure to spend the remainder of your earnings wisely towards a lifestyle that is within your financial means.
Understand most people do not know how to set their financial foundation properly. It's always good to have a professional adviser that you trust to assist you along the way.
It's important to be able to recognize where your true problem lies. Most times it is in the foundation of one's spending habits.
The sequence Dad taught us is to:
1. Pay yourself first.
2. Make a budget each month. The importance of a budget is so that you always know exactly where your money goes. "NEVER spend more than you can afford." Which meant if we wanted a piece of candy or toy that was more than the funds we had after putting aside our 10%, then do not even think about buying it!
3. The last thing Dad was relentless on was that no allowance for the next week would be handed to us until we showed him the budget from the previous week and a soft planned budget for the upcoming week. We thought it was brutal, but if we didn't do it, we would have no allowance for the upcoming week.
Now, as I sit here telling you about my first allowance experience, all I can think to say is, "Thank you Dad, for teaching us one of the most important financial lessons in life!"
This childhood lesson, actually is not 'childlike' at all. It's a principal that everyone should adhere to.
If you are in a situation from overspending and your liabilities are more than your earnings, then you need to take a step back and take a good honest look at your weaknesses.
The bottom line is, "Nobody is going to take care of you, but YOU."
Get disciplined NOW to correct your situation. You may have to change a lot in your current lifestyle to achieve a positive financial outcome ...and that's what you want, "isn't it?"
The second thing you must do, if you're severely debt challenged is find and work with a profession consultant or agency which specializes in helping people get out of debt. If they are good, they can work a program out for you to get your budget into a positive arena again.
The third action you MUST take to make sure 'you are taking care of you and your family" is to find a professional adviser that you can trust who will show you the best program to start saving for your retirement and direct you to other programs to protect your assets. ... Life insurance, disability insurance, critical illness insurance and long-term care insurance. You need this assistance to make sure your financial goals become a reality with those hard earned
dollars you are saving.
You don't have to win the lottery to be a winner.
Become a winner today by applying the simple Financial Wisdom my Dad passed on to me and my sisters, Dinah Shores' father passed on to her and I'm sure many of your parents passed on to you to "Pay yourself first, and don't spend any money unless you have to."
It worked for your parents, grandparents, and great grandparents then it certainly will work for you.
Only a fool spends everything they get. Do not fall into that habit.
Do you know the difference between SAVING vs. INVESTING? Not knowing the difference could hurt you. Take a look...
