One thing that we have all wanted since we were kids was to have a lot of money so that we could buy anything and everything we wanted. While that is not possible in the realistic sense, we can obviously come close enough to leading a life we all dreamed of. Gaining financial independence is at the core of things.
All of us want to make more money, invest more, and save a generous portion of it. If we did this, then we can ideally reach financial independence in just 10 to 20 years.
What we do need to find out first is – what does financial independence mean to us as an individual? To most people, in the general sense, being financially independent means that they can maintain their desired lifestyle without relying on a regular paycheck.
Thanks to the internet and all the people willing to pass on their knowledge, learning how to manage your finances has never been easier. We can find everything from testimonials to detailed instructions on how to invest in various profitable ways. Tips on saving and being frugal are a few of the first things that I searched when I started living on my own.
Even though there are tons of resources available, nothing beats what you learn as a child. Good financial habits, if developed from childhood, can reduce the struggle of becoming independent financially.
Making a realistic monthly budget was the first step for me. It wasn’t difficult for me because I had always been mindful of my spendings against the flow of my income.
Since I was a child, my dad taught me the importance of living within means. He always said borrowing money was borrowed from your future self. You deprive your future self of having the money that could be used if an emergency cropped up.
He said if I kept taking credit, I will soon fall into a pattern and won’t know when to stop. This makes people live a lifestyle, they cannot afford. Many people fall into heaps of debt just trying to keep up with the lifestyle.
If an emergency comes up, you will be in real trouble because you already used up all the money. There’s no point in spending the money you haven’t even earned yet. It is better to learn to live within the budget your current income provides.
His words always stuck with me. Even as a kid, I never took an advance on my measly pocket money. That habit has been a great help as I try to find my way in the journey of improving my financial health.
My dad has taught me a lot of things. The things he said about money stuck with me the most. He always taught me to plan ahead. He told me to question what I wanted to buy – to question if it was a need or a want. Could I afford it without help from my parents or without asking for an advance on my pocket money?
He taught me to have money saved no matter what. Even as a child, I was advised to distribute my money in different compartments of my bag, so that even if I lost money from one compartment or it was stolen, I would still have something to come back home.
The not to put all the eggs in one basket version my dad taught me has led me to search for various avenues of saving and investment so that even if one thing fails, I won’t be going broke anytime soon.
Like my dad taught me important financial lessons as a kid, it is the responsibility of parents to teach kids about handling finances from a young age. I wouldn’t have understood the importance of saving money and investment as a child, but the relevant example of losing money from my bag and still being able to come home stuck with me.