As a tribute to all the amazing mothers out there, we asked our team to share some of the most relevant money insights they learned from mom
At some point during our childhood or adolescence, we probably overheard mom voicing concerns about our financial practices, and in other instances she helped us build solid foundations for the adult future that awaited all of us, from very early on. Today is a very special day: Mother’s Day. As a tribute to all the amazing mothers out there, we asked our team to share some of the most relevant money insights that are still applicable to their daily lives today. Here’s some of what they shared:
Knowing that you have money in reserve or in an emergency fund eases your mind and allows you to focus on other important things that aren’t necessarily related to money. When we have money concerns, all our energy is channeled towards that and diverts focus from other areas of our life that are extremely important. MONEY HEADACHES ARE NOT HEALTHY! Having money saved reduces the fear of handling unexpected situations that almost always result in having to spend money we didn’t plan on. It’s all about feeling secure by knowing that you can cover any costs thrown at you unexpectedly.
This seems obvious, but if we do an audit of all the things we buy out of impulse or without really thinking it through vs what we actually really need or want, we may be surprised… we challenge you to think about this.
Your essentials always go first (food, shelter, etc). Everything else comes after that
When it comes to your bills, you must remember that skipping or ignoring payments hurts you in some way or another. Paying our bills on time is an integral aspect of getting our finances organized. While it may seem obvious, data released by WalletHub reported that in 2019, 16% of adults — an estimated 40 million Americans — believe they will probably miss at least one credit card payment in 2019. If you do the math, calculate that by an average late fee of $25, that’s a staggering 1 billion dollars.
Remember that whatever you borrow you will have to pay back, plus interest. Pretty basic, but the point is that we have to really think about why we’re borrowing and how much. The fact that you get approved for a loan, or a million mailers offering you credit cards or financing opportunities does not mean you should always listen. Before you take on a loan think about the “why” and what that’s going to generate in return.
Money is a means to an end. Money sitting in your bank account doesn’t produce enough to neither grow nor to sustain its value. Therefore, if you’re not investing the money you’re producing and only saving it’s just there losing value. Don’t confuse this with your emergency fund. This type of fund is designed to be parked for emergencies only and once you accomplish this step it’s time to move on to investing. This is very important to understand because if you’re only saving the money you’re making, its purchase power will decrease over time and won’t be enough to sustain your desires in the future. Also, we believe in living and that is what we call lifestyle. Traveling, eating out, experiencing the world, doing the things you love, etc. require money and that is money that ends up being spent. The purpose of this money is to provide a lifestyle full of experiences.