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Becoming Minimalist

Own less. Live more. Finding minimalism in a world of consumerism.

7 Pieces of Financial Advice That Forever Changed My Life

Written by joshua becker · 401 Comments

There is financial advice all around us. But here are the 7 most life-changing pieces of financial advice I’ve ever received.

Motivational speaker Jim Rohn famously said we are the average of the five people we spend the most time with.

One significant reason this happens is because of their example and model. As we recognize their positive aspects, we seek to emulate those characteristics in our own lives.

Another reason is because of the conversations we have and the advice we share. The more quality time we spend with people, the more nuggets of wisdom we begin to hear from them.

Over the years, I’ve been blessed to have countless positive influences in my life. Their example and their wisdom have shaped me in every way—including my financial practices. Here are seven specific ways.

The 7 Most Life-Changing Pieces of Financial Advice I’ve Ever Received

1. “Most people who overspend their income do so in one of three ways: 1) Too much house, 2) Too much car, 3) Too much entertainment.” //  Financial adviser, 2008.

I made a passing statement to a financial adviser friend of mine one particular evening over dinner. I had no data to back up the claim, it was purely an observation made on anecdotal evidence. I told him that most people I know who are living in debt seem to carry a monthly car payment. That’s when he offered the financial advice above in the form of his own personal interactions.

There are outstanding circumstances for sure (medical emergencies, tragedy, job layoffs, etc.). But generally speaking, if you have a hard time living within your income, check your spending on your home, your car, or your entertainment (dining, tickets, trips). I have tried to keep all three modest ever since.

2. “Begin your marriage living on just one income.” // Boss, 2000.

My wife and I got married in June 1999. During our first several years of marriage, we both worked full-time jobs. My boss at the time, a man I looked up to in countless ways, offered me financial advice one day during a short conversation by the coffeemaker. He suggested, even though both of us had steady incomes, as a newly-married couple we should work hard to live on just one of the incomes and save the other.

So we did. My wife’s income each pay period went immediately into savings and my income went into the checking account.

One year later, that savings account became the down payment on our first home. And four years later, when we had our first child, we were still living on one income which freed up my wife to choose to stay home if she desired.

3. “Buy your car with cash.” // Friend, 2004. 

My first car, a Chevrolet Corsica, I bought from my parents and paid them back monthly over the course of one year. When that car began to sputter eight years later, I entered the marketplace to purchase another. Talking it over with my friend one day over a roast beef sandwich, he offered me his thoughts:

“Whatever you have in savings,” he said, “make that your budget for your next vehicle—even if it isn’t much. Then, rather than making a payment to the bank on your existing car, begin making a monthly payment to yourself for your next car. Whatever you would have paid for a car payment, put into a savings account. When your next car dies, you will have a bigger budget for the next one—then, repeat the cycle. You’ll be surprised how quickly you are able to upgrade your vehicle over the course of your life.”

This is advice I have never strayed from. And it’s totally true.

4. “If you can’t keep a monthly budget, use a spending plan instead.” // Writer, 2009.

In 2009, as we were just beginning our journey into minimalism, I was introduced to the idea of a Spending Plan. Contrary to a monthly budget that requires detailed tracking and frustrates many, a spending plan provides flexibility as it offers more of a snapshot, moment-in-time glance of your current spending. But the knowledge and lessons learned from the snapshot view of income vs. expenses provides valuable insight for course correction.

The idea is worth the effort for everyone. First, determine your monthly take-home pay. Second, subtract your fixed monthly costs. The money left over is your monthly discretionary income. With that number in hand, you are in a good place to determine where you’d like that money to go. Here’s a more detailed explanation.

5. “You are never too poor to give.” // Parents, 1979.

Growing up, there was not excess money around our home. In fact, only years later did I begin to hear the stories and understand how tight it was at times. The most significant involves a local grocery store raffle contest that happened to draw my parents’ names on the very week they seemed entirely out of options to feed their young family. And yet, through it all, my parents lived with a simple philosophy on generosity: “We will give to charity, and we will teach our children to do the same.”

Their example and their advice have revolutionized my life and my view of money. No matter how tight my money situation has been over the years, I don’t think I have ever missed the opportunity to give away at least a small portion of every paycheck I have received. This is not because I made lots of money. Quite the contrary, it is because I learned from a young age that generosity has rewards of its own and is always worth the sacrifice.

6. “Never take a job just because of the money. Always consider the money, but never let it be the determining factor.” // Mentor, 1998.

In 1998, following a two-year internship after college, I began the search for my first full-time job. I remember, at that time, seeking the counsel of a spiritual mentor of mine. Sitting across from his desk, I asked about money and how much I should let that factor dictate my decision.

He responded with some of the best advice I have ever received: “Joshua, you need to consider the money. A job that pays too little or seeks to take advantage of you will ultimately add stress and worry to your life and keep you from doing your best work. So you have to consider it. But never let it be the most important, determining factor in your search. Always consider your talents and skills and strengths and the opportunity to make a difference in the world first.”

I have tried, throughout my life, to consider income in the jobs I have taken, but have never allowed it to be the most determining factor. And I have literally no regrets concerning the path that career advice has taken me.

7. “One extra monthly payment per year on your mortgage shortens the length of your loan by years.” // Real Estate Broker, 2001.

While working through the specifics of our first home purchase, our real estate agent made a passing comment concerning our mortgage payments. For her, I think it was just a simple fact about the mechanics of amortization schedules. But for me, it became a life-changing goal—make one extra monthly payment each year on my mortgage.

Over the course of the next 16 years, we’ve worked hard to add a little extra each month to our mortgage principle—even if it’s just $50. In the end, most years it’s added up to a full extra monthly payment. As a result, we’re on-track to have our mortgage fully paid well before 2031. And for that, I’m forever grateful.

I don’t always ask a specific question for the comment section. But I’d love for you to add your wisdom to this post:

What is the single most significant piece of financial advice you have ever received? And how has it improved your life?

Comments

  1. Gezelle says

    November 4, 2020 at 7:44 PM

    “An item you bought on sale that you don’t need is not a savings but an expense”

    Definitely! I have purchased a lot of 50% off clothes that I don’t wear, movie tickets I used only once and a thousand peso fanmeeting ticket left in me after event. Then pandemic hit us. No savings, no emergency funds. All I could do is regret how I use my money before

    Reply
  2. Lily says

    November 4, 2020 at 5:47 AM

    Superb insights Joshua! Thank you!
    Three advices I have received that resonated with me are 1)Pay yourself first (Which I don’t really follow as much as I would like to) 2) avoid debts as much as possible (this I follow diligently) 3) have multiple streams of income (I am trying)

    Reply
  3. Angela says

    November 3, 2020 at 11:33 AM

    I am happy to say that many of these things I did as well or still do today. I think the main action that I can look back on with gratitude was the strategy to live off one salary. My husband and I were married for 17 years and lived throughout this time on one salary. In hindsight, this benefit also meant when we divorced a few years back neither of us was worse off as we had a substantial savings/retirement fund next to our key assets and no debt. We both landed on our feet and could continue life without feeling financially setback.

    The strategy of living off one income for basic expenses meant we bought cars with cash and paid cash for our vacations (from the second income). At times it felt like a sacrifice but now single and in my late 40’s I feel financially stable – something that not all my friends can share.

    Lastly, I still manage my month to month based on a spending limit. I have a detailed budget that I set each year but do not need to track it closely as my expenses are fairly regular or fixed. I can tell by my credit card balance if I am on track or not. I paid everything on the card and then pay it off at the end of each month. I basically have two payments – my mortgage and my credit card. I find it a simple and quick way to know if I am on track and eliminates the need to check various accounts or cards to add it all up. Streamline how you spend your money and it will help you track it!

    Reply
  4. Dawn Cauthen says

    November 3, 2020 at 8:40 AM

    “Those who understand income earn it. Those who don’t pay it.” I heard this quote at a business meeting ~2000 and was so struck at how profound it was. Changed my view forever.

    Reply
    • joshua becker says

      November 4, 2020 at 9:38 AM

      Is it supposed to be “Those who understand interest earn it. Those who don’t pay it.”? That would seem to make more sense to me.

      Reply
  5. Janet Collier says

    November 3, 2020 at 5:32 AM

    Start saving and investing in your tweens (or sooner)–Money saved adds up. Consuming entertainment, fast fashion, new tech, and lattes now means struggle and borrowing to get what you need as you grow–Debt and struggle also adds up. That money you make from babysitting or lawn mowing, or the birthday cash you receive is all discretionary. Instead of taking it to the mall and looking for ways to impress your peers or treat yo self, take care of your future self. I know more than a few teens who turn 16 and can’t afford Driver’s Ed (It’s about $450 where I live), yet carry a recently upgraded cell phone. Moreover, they knew this opportunity was coming. It’s fun to be young, but there are other ways to enjoy life than spending too much money on things you can’t or won’t use later. It’s not fun to be an adult who needs a second job to make ends meet.

    Reply
  6. Lauren says

    November 3, 2020 at 1:23 AM

    I’ll never be able to pay off my student loan in my lifetime and have no retirement saved, so I’m just treading water. Best financial advice I ever heard was pay yourself first; it just isn’t always possible.

    Reply
  7. Caz says

    November 2, 2020 at 9:10 PM

    My dad said “It doesn’t matter how much money you make, if you don’t learn to budget, it’ll never be enough.” He was so right.

    Reply
  8. Donna McFarland says

    November 2, 2020 at 8:26 PM

    Don’t buy something you don’t want just because it’s cheap. –Thomas Jefferson.
    That little tidbit has saved me a lot of money over the years.

    Reply
  9. Marty says

    November 2, 2020 at 7:51 PM

    A minimalist YouTuber once said while in a store aisle that it’s okay to admire something without necessarily having to buy it. It was liberating because I never thought of it that way. If I really liked something, I bought it. But now I can look at a nice item, admire it, and keep walking. Being a minimalist doesn’t mean I have to force myself to not admire things just because I’m not buying them anymore.

    Reply
    • Patricia says

      November 3, 2020 at 8:24 AM

      This is true of things your friends own as well. You can admire their houses, cars, electronics, clothes, etc., and be happy for them that they are enjoying these things, without coveting them for yourself, and certainly without buying them yourself.

      Reply
  10. Tracy says

    November 2, 2020 at 7:12 PM

    “The borrower is servant to the lender.” -the Bible. People simply need to let that sink in. It’s harsh, and ? truth.

    Reply
  11. Shelly says

    June 7, 2020 at 5:17 AM

    Contribute at least the minimum to get the employer match on your 401k. I see so many people that don’t contribute to their 401k at all and many times they are missing out on up to 5% of their employers match. If you are scared to invest, put it in something safe and you’ll still double your money if your employer matches dollar for dollar – a great return on investment!

    Reply
  12. W Y YIU says

    June 6, 2020 at 3:35 AM

    can’t agree more on advices #5&6 also being inspired by #1. Throughout my years, the most valuable financial advices are:

    1. To save as early as possible because of the compound effect – thus I started to do the same when I just graduated from university and kept my living standard moderate. I sold my car and never own another one again after receiving this advice. Certainly I have been living in a country with very convenient transport system that I can survive with only public transport.

    2. We should earn more, Not so much about for ourselves sake, but for God’s sake so that we can tithe more. Not only at one tenth but exceeding this amount. I practised for more than two decades and blessing from God flushed to me that I must admit!

    3. Acquire some financial knowledge when you are young! Being steward of God’s money, we have to be capable to manage this. That’s so true! We learned so many skills and equipped ourselves well before entering the workforce, be a volunteer in church or outside church. How can we be ignorant when handling the large amount of money God entrusted to us?

    4. This advice is actually from your work “the more of less”. You said we can do experience of not having some clutters before giving / disposing them. I turned it into another experiment: before buying, try an experiment to see how long you can survive without that item? After a month or two, you’ll know if buying this item is just an urge or a genuine need.

    Reply
  13. Doina says

    June 5, 2020 at 7:36 PM

    Like #1 it is totally me , too many school supplies and books. I decided to donate more. Much appreciated

    Reply
  14. Hannah says

    June 5, 2020 at 6:40 PM

    Thanks, Joshua. It ‘s just that sometimes you have to pick yourself up. My partner has paid off his house this year. He also bought a new car for his sister – none have a college degree. It is unlikely that I will be able to do the same thing with a loan to a degree that will need very soon to be returned because it can’t work so well nowadays because of the interest rates. It has nothing to do with comparing with him. But when I see pops-up advertized and marketers making their way in buziness doing what they do, I so agree with your post.

    Reply
  15. tina brogaard says

    June 5, 2020 at 3:30 PM

    My grandmother said; don’t loan money.
    Not like in don’t take out at big loan. But in general, pay for everything when you get it.
    She bought houses, cars and everything cash.
    It might mean you have wait and/or have to start small, but by paying everything off right away, you never pay interest. In that way, the money you earn is yours.
    And if you have to save up for something over the next few years you appreciate it so much more than if you just go out and borrow the money

    Reply
  16. Edriana says

    June 5, 2020 at 10:04 AM

    Nobody gets much anymore to save. It comes down to us to care for the housework, on grocery , on car, utilities, AND clothings. So I have been running to you to find ways for planning financially. Many thanks you for sharing your amazing ideas.

    Reply
  17. Christine says

    June 5, 2020 at 9:46 AM

    Live below your means.

    Reply
  18. Heidi says

    June 5, 2020 at 9:12 AM

    Joshua. Great blog and comments. This is very helpful and easy to apply daily. Thanks for making my day ?

    Reply
  19. PAT Finance says

    April 3, 2020 at 1:19 PM

    Another reason is because of the conversations we have and the advice we share. The more quality time we spend with people, the more nuggets of wisdom we begin to hear from them

    Reply
  20. Joseph says

    February 14, 2020 at 3:17 PM

    The more ways you find to save and earn extra money, the more you’ll eventually have; cut expenses, increase income.

    Nobody is a better advocate for you than yourself, and nobody will do for you what you won’t do for yourself; only YOU can save you money, and only YOU can take control of your choices.

    Reply
  21. Steve Kuipeer says

    February 11, 2020 at 6:11 AM

    Lovely advice. I like the second very much. Love from India.

    Reply
  22. Angela Forman says

    February 9, 2020 at 11:25 AM

    All great advice. Question. If husband and wife work, should they keep their money separate in their own accounts or together in a joint account?

    Reply
    • joshua becker says

      February 9, 2020 at 1:22 PM

      If you’re one family, one account.

      Reply
      • Jeff Meisner says

        May 27, 2020 at 11:13 PM

        I am 40 years of age and tackling credit card debt and car debt and dental debt…. I wanna try and pursue a second career change to earn more income and have skills and be happy because I lost a good career that I couldnt get back at ….But im concerned about racking up more debt but I also dont wont to be a failure in life and I wanna create a legacy for my kids and not later on – Im on my death bed having regrets that I should of would of could of But let fear keep me from becoming something greater because of aquiring more debt….Any advice? I do live pay check to pay check and just started paying down some cc debts and saving for an emergency…

        Reply
        • Me says

          August 22, 2020 at 7:08 PM

          You’ve got a ton going on in that paragraph. I’d suggest staying at the job you currently are at, and paying ALL of your credit cards and dental debt off. Then, think about another job. If you switch, and put more debt on your cards, you’re just digging yourself deeper in the hole, meanwhile hoping to get a better paying job.

          Reply
    • Beth says

      June 5, 2020 at 6:16 PM

      I think each couple finds what works best for them. I think one account to pay the bills and save, but if you each can take $100 a pyck and put into your separate accts you need your own money. As a woman make sure you are building good credit in your name only. If one person manages the bills make sure other person has access with passwords etc.

      Reply
  23. Christine says

    February 7, 2020 at 4:15 PM

    “CASH is King, DEBT is Dumb!” – Dave Ramsey

    We cut up our credit cards, closed the accounts as we paid them off. We sold our newer cars and bought 15 yr old Toyota’s with cash. We are planning to pay off our mortgage early as well.

    Love your post too!

    Reply
  24. Gaby says

    February 6, 2020 at 4:00 PM

    Your #2 is spot on!
    We, too, were both working full time when we got married. But living in a small apartment and living on just one income allowed us to finish paying for grad school without any debt, pay off a car, and save for a good downpayment on our first home. And we made sure to get a home that we knew we could afford on just the one income. When we had our first child I was able to resign and I’ve been a stay at home mom for 10 years. Money has been tight but we’ve always had what we really need. It’s one decision we will never regret and always be grateful for.

    Reply
    • Judy says

      June 5, 2020 at 8:49 AM

      The way I look at the two income family vs one parent at home while children are young is that there are sacrifices either way. Sit down and crunch the numbers and decide what sacrifices you are willing to make

      Reply
  25. Karen says

    February 6, 2020 at 2:23 PM

    Watch your pennies and your dollars will take care of themselves

    Reply
  26. Nancy McManus says

    February 5, 2020 at 7:34 PM

    I was told once that you should never pay for your groceries on credit, because the food will be gone before it is paid off. This may not be an issue for some people because they are able to pay their credit card off every month, but for people who live pay cheque to pay cheque it may be valuable.

    Reply
  27. Kara says

    February 5, 2020 at 6:32 PM

    This is great advice! I think at the root of it all is living with intentionality when it comes to your finances. Once you start assigning each dollar a place to go (and automatically!) you don’t even have to think about it!

    Reply
  28. Bart Reeder says

    February 5, 2020 at 3:04 PM

    The best piece of work/career/income advice I’ve ever heard was from William Shatner in a book he wrote (it may have been from his autobiography “Up Till Now”, but I’m not sure). Regarding whether to accept acting job offers, he said he always said “yes”. No matter how busy he was, he could never be sure there would be any future offers. So taking all the work he fortunate enough to be offered, was a given in his view.

    If you are self-employed, it’s frequently feast or famine, so turning down any (minimally reasonable) job in your field that will actually pay you for your work/abilities/skills is very foolish in my view. So the advice is “always say ‘yes’ “, and work harder/longer to live up to your commitments. Passing up a good offer in anticipation of a better offer that may never come is just arrogance – take what comes and hustle for the rest.

    Reply
  29. Cheryl says

    February 5, 2020 at 10:24 AM

    The most important financial decision you will make is who you are going to marry.

    Reply
  30. Trish says

    February 4, 2020 at 9:15 PM

    Break your spending down into essential and non essential.
    Pay yourself 10% which you can save or invest.
    Give away 10%
    Use OPM (other peoples money) to make you wealthy.
    Learn from the experts. You don’t have to reinvent the wheel.

    Reply
  31. Zeean Bumpus says

    February 4, 2020 at 7:39 PM

    My Dad and Mom always told me we could not live like the federal government. Save for it, pay for it! ❤️

    Reply
    • Sena says

      May 22, 2020 at 8:35 AM

      The TV anchors never talk about how to save for retirement, they are already on their way to full benefits when retired, it is the poor French Bastard who is without money.

      Reply
  32. Andrea says

    February 4, 2020 at 7:37 PM

    Mum said spend half and save half each week we got pocket money.

    When she took us out to the car boot sales and gave us spending money, the rule was that we weren’t allowed to eat it. If we spent the money we had to have something to show for it other than a tummy full of candy and hot dogs. “Don’t eat your money” is still a good adage for packing a lunch and not eating out often.

    ” Look after what you have.” If you maintain what you have it lasts longer.

    Reply
  33. Ann says

    January 9, 2020 at 8:35 PM

    I got out of debt by starting small. I put $5 extra toward my credit card. When I realized I didn’t miss that $5 I made it $10, then $20 and on up to $50. When the card was paid I added that $50 to the next payment and continued that practice until my codo was paid off. I was surprised how easy and quick it went. Then I put those combined payments into savings. At the same time I was putting money into a 401K at work. It was surprisingly easy to learn to live below my means and I was actually happier. Now that I’m retired I spend some of my income giving to those less fortunate.

    Reply
  34. John Mc Gonigle says

    December 12, 2019 at 4:10 AM

    On your mortgage make the payments weekly ….you’re holding the money until the end of the month anyway why not reduce the principle weekly and benefit from this, most banks don’t like the arrangement but if you write to them they will reluctantly set it up, over the lifetime of the mortgage the savings are noticeable

    Reply
  35. Faith says

    October 15, 2019 at 1:57 PM

    From my high school home economics teacher:

    “When outgo exceeds your income,
    then upkeep becomes your downfall.”

    (Do schools even teach Home Ec anymore?!)

    Reply
  36. Zora says

    April 24, 2017 at 2:51 PM

    Some of the financial tips I practice are: 1) Not to spend more than what I earn. Stay away from debt unless it’s for life threatening emergencies. 2) Charity does not make one poor; it blesses one with more or at least it makes one happy. It’s better to give than to receive. 3) Save for the future but not too much. Live in a moment. 4) Stay connected with important people in your life, your family and your friends.

    Reply
    • Kelly says

      September 16, 2019 at 7:55 PM

      Great article thank you!

      My answer – Be able to separate your needs from your wants. It’s crucial to living within your means and being or becoming a saver instead of a spender.

      Reply
      • Lydia says

        November 2, 2019 at 1:52 AM

        This is a great one! Thanks!

        Reply
  37. Kent Julian says

    April 17, 2017 at 8:11 AM

    This is great advice, Joshua. What’s more, it’s great advice because you’ve actually followed through with it.

    Thanks for sharing. I’ll be passing this along to people I’m connected with online.

    Thanks again!

    Reply
  38. Linda Bittner says

    April 16, 2017 at 7:38 AM

    Pay yourself first. Save 10% of every paycheck. That helped get me out of a bad marriage, I ‘wrote a check to myself’ so there was always more money than what showed in the register.

    Reply
  39. Leslie says

    April 14, 2017 at 10:18 PM

    Get a 15 year or less mortgage for your home, and don’t purchase a home unless you can put 50% down. We discovered the last piece of advice by accident. My husband lived in an apartment and I lived 5 hours away, so looking for a home before getting married was difficult. After getting married, we decided to live in his apartment until we could find a desirable home/neighborhood. We both worked long hours, which didn’t leave much time to look for a home or spend a lot of money! The savings of maintenance/taxes/ utilities/not having a large living area/using bachelor furniture added up, and by the time we found a small home 2-3 years later we were able to pay 50% of the price in cash which allowed us the ability to get a 15 year mortgage instead of the typical 30 year loan. We made extra payments, so by the time we had children and outgrew that home, we had paid off the mortgage. Once that home sold, we used the full amount to put 50% down on another home with a 15 year mortgage. We’ve been married 19 years and are now debt free, and I am a stay at home mom enjoying every minute I can with my children! This may not have been possible if we had plunged into a home the first year of marriage.

    Reply
    • Christine says

      October 6, 2019 at 6:15 AM

      When we paid our house off and car I kept making those 2 payments Into my savings act…hit 90.000!!!!

      Reply
      • Lydia says

        November 2, 2019 at 1:54 AM

        Congratulations Christine! ?

        Reply
  40. Abby says

    April 14, 2017 at 6:52 PM

    Before we were married, we talked about money and how we spend money. Neither of us were spending to maintain an image or lifestyle. I did, however, adapted my husband’s “allowance system”.

    For many, they are always running to the atm and then cannot remember what they spent their money on.

    We get our “allowance” usually on Friday and it has a set amount. This is our walking around cash for lunches, movies and other small stuff. You can allot a set amount per day (my general method) or spend about half during the week end and meter out the rest for the week days (my husband).

    No trying to track receipts or note down something on paper. You either have the money or you wait until the next allowance day.

    Reply
  41. Zara says

    April 14, 2017 at 7:53 AM

    My nan once said to me, ‘Money comes and money goes, I’ll have some more next week, let me buy you the gift’, after I had tried to stop her buying me a gift I thought she couldn’t afford. While she didn’t mean this as an excuse to get in debt, she did mean that you shouldn’t worry so much about money that it stops you from enjoying life. It’s always stuck with me. Anytime I feel myself getting a bit stressed because I’m strapped for cash, I remember those words. It’s not worth stressing over.

    Reply
  42. Susan says

    April 14, 2017 at 7:09 AM

    When the investment guy came around to talk retirement money at my very first professional job, there was no way I was going to do it. I made $12.19 an hour (which was actually good in 1994 for the allied health field I was in) and my husband was a full time pharmacy student with two jobs. My supervisor kept insisting, and gave me a motherly talk and the push I needed. The first amount I invested was $62/paycheck, and it felt like a fortune. However, after a few pay periods, we had adjusted and no longer missed it. She was right, and I’ve never stopped investing for retirement since. Having my money grow since the age of 22 has made a big difference in the amount we will have in our later years.

    Reply
    • Andrea says

      April 23, 2017 at 2:40 AM

      I barely make that an hour now and I’m a single mom raising 2 kids by myself. I still save a little each check in my 401K before and after tax deductions. It’s hard hearing people talk down on hourly wages from nearly 30 years ago that I barely make now. I may not make a lot of money but I love my job and it allows me to support my family. That’s more than a lot of people who make $30/hr can say.

      My parents taught me nothing in regards to financial advice. I’ve recently been trying to unlearn bad habits. They bought cheap junk rather than spend on quality. My own best financial advice is to spend more ONCE on quality for needs and skip the cheap junk “wants.” And being happy regardless of income; not desiring an expensive home is probably the best financial choice I’ve made.

      Reply
  43. Drsan1 says

    April 12, 2017 at 6:52 AM

    One financial adviser told me to get rid of my current whole life policy (which he sold me a year before), and buy this new one at a new company he went to. This was the best financial advice because it opened my eyes to the fact that I am my own best advocate for my finances. I dropped him and the whole life policy and began to read books, articles and blogs and I am so much better off financially. That “terrible” advice changed my life!

    Reply
  44. Rashmirekha Sarma says

    April 10, 2017 at 3:58 AM

    My mother is a very bad money manager. When she had retired from her job, she had nothing as saving. Because of some unfortunate circumstances, she had to repay most of her retirement benefits. She was so much afraid of that situation that made her ill and a patient of panic attack. At that time, I took the mater in my hand and I become the money manager of my house. From the very beginning of her pension income, I started to save a little, than spent on the needs like grocery, bills etc. and than whatever left, that money spent for wants like entertainment, travel etc. After 8 years of her retirement, i saved quite a lot and my mother is now always amusing that money saving is that easy…

    Reply
  45. William Gilmore says

    April 10, 2017 at 2:33 AM

    Great post, I must admit. All the points are awesome

    Reply
  46. Denise says

    April 9, 2017 at 6:45 AM

    “Taxes will be one of the biggest expense in a person’s life. So, manage it.”

    “A dollar spent is a dollar fifty cents of before-tax money you have to earn, when you take into account all the different taxes (ie. income tax, sales and service tax).”

    I read both the above somewhere, and they have stuck with me all these years.

    I also took to task to arm myself with knowledge of how expenses and the different types of incomes from a tax standpoint.

    The time I took to understand income, expenses, and taxes has led me to the conclusion that I am better off starting my own business, and learning to spend wisely.

    It has also freed me from tying myself to a 9 to 5 job, spending time in a 6 x 6 cubicle, and doing things that do not add any value to my life whatsoever just to survive in a corporate jungle.

    “The only things that are certain in life are death and taxes.” We cannot do anything about death, but we certainly can do something about taxes. =)

    Reply
  47. Kelly says

    April 9, 2017 at 3:49 AM

    Great article! All very good advice! Best advice came from my mom,” Never let your rent or mortgage be more than one week’s pay” We have abided by that our whole married lives, ( 35 years)! We live in one of the states that was hit the hardest by the real estate market collapse. That in turn caused a terrible downward spiral in the construction industry that we work in. We are very grateful that our company survived and we had no issues paying our very affordable mortgage.

    Reply
  48. Glen says

    April 7, 2017 at 9:34 AM

    Great article! My two quotes/lessons that really resinate with me are: “The more things you own, the more they own you.” I have been a collector of things all my life, and learning this lesson has made me become happier, with less.
    My other lesson I picked up from financial guru Dave Ramsey’s book ‘Total Money Makeover’, is that things don’t make you happy, but the fact that you don’t NEED that thing is what makes you happy. I applied this to my collecting habit, where needing that new ‘thing’ will make me happy, but in reality, its actually the moment after you get that thing and ‘don’t need it’ is the true moment of happiness. So why not, skip the ‘NEED’ part and be happy NOT needing it?

    Reply
  49. mart says

    April 6, 2017 at 10:44 AM

    Best advice I tell my kids that I coach in High School..One house,one job you love and only marry once.. Little extra marry ugly they wont leave you. Now most people say I see your wife took your advice. Same house and wife 39 years and had 2 jobs that I stayed with for 40 years total..

    Reply
    • Jeanie says

      April 24, 2017 at 10:09 AM

      That was perfect for your time. Nowadays, everything is different. “One job” is very rare.

      Reply
    • Julia says

      February 5, 2020 at 7:18 PM

      Funny ?

      Reply
  50. Melanie says

    April 6, 2017 at 9:12 AM

    “Motivational speaker Jim Rohn famously said we are the average of the five people we spend the most time with.” Yes! I think that our parents especially can be a huge influence in how we think about and use money. Sounds like your parents were a positive force in how they showed you the value of giving back.

    Reply
    • Peggy says

      February 5, 2020 at 9:17 AM

      We did all of those things, and no one advised us to. Just common sense really. Only buy the necessities until your kids are grown, and you have saved enough for “treats”, but even then, ask your self, “is it really worth it in the long run?”

      Reply
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