I’ve had a few different guests to share their advice on this blog and I have a special one for you today – my parents.
Migrating twice to completely new countries with zero help, they have a unique financial outlook and perspective which I would like to share with you today.
First up, my dad.
A high-risk, high-reward entrepreneur, he has a very different financial outlook to myself. Preferring real estate to the stock market, he is also very pro-debt such as taking out mortgages to buy real estate or business loans.
Here’s what he said!
“Monitor your spending. Determine what you want vs. what you need.”
I remember when I was a teen with my first salary and if I wanted something he would ask me “Do you need it or do you want it?”. That might be a good question to ask yourself to help stick to your budget.
“Earn commission not allowances”
I wasn’t sure what he meant by this one so I clarified. He means try to get a commission-based role that can give you unlimited earning potential (e.g. sales) if you put in extra work vs. relying on the income you get.
“Remember that it is natural for money to a burn a hole in your pocket so make sure you save and have a spending budget”
“Communication in your family plays an important role in managing money well. Have honest money conversations with your partner – it can help avoid conflict about money. Involve your children in planning and budgeting, it can make it easier to achieve savings together.”
Next up, my mum.
My mother has always been more conservative with money and prefers less risk. I asked her what advice would be to a young couple just starting their money journey.
“I think savings for the future should be compulsory and buy what you need only. Don’t spend more than what is in your budget. Think twice before spending.”
And, there you have it! Be frugal, only buy what you need and stick to a budget!