This Mother’s Day, we can celebrate all the ways our moms have helped shape us into who we are today–including our financial habits! Let’s take a look at some of the best money tips we’ve learned from our money-savvy moms.
1. Have an Emergency Fund
The top money tip from moms is to always put a little money away towards an emergency fund. This doesn’t have to be a massive account, but it should be something that you can rely on when times get tough–like covering essential bills, car repairs, and more.
You’ll need to make a habit of putting away money in your emergency fund, so try to earmark a portion of each paycheck to save as a way to slowly build up this fund.
2. Invest Early
To take your savings goals further, moms urge us to take advantage of the power of compounding interest by investing. Open up an investment account as early as possible, and simply get in the habit of contributing to it on a regular basis, even if some months are less than others.
Consult with an expert if you need guidance, but our mothers have helped us to understand that investing can be a big tool to help you reach your financial goals later in life.
3. Shop the Sales
Another smart money tip from moms is to always shop the sales–both for the needs and the wants. Pay attention to the weekly flyers at your local grocery store to see when you can get a good deal on bulk items or products you frequently buy.
Or, if you have a favorite clothing store, make sure you know when they’re putting on a big sale so you can treat yourself to some items below full price. In either case, saving a few dollars here and there can really add up over the year!
4. Stay out of Credit Card Debt
Our mothers have also shown us the trap of credit card debt and the importance of avoiding it as much as possible. The high-interest rate that is tacked on to this debt makes it almost impossible to pay off if you’re only ever making the minimum payment on it. So, do your best to avoid going into credit card debt.
According to many financially-savvy moms, if you can’t afford to pay for something outright, it’s best to not purchase it at all. If you can’t handle the temptation, get rid of your credit card altogether, or keep it at home in an inconvenient location to only use when needed, not out of convenience.
5. Make a Budget and Stick to It
Moms have taught us the value of making a budget, and more importantly, sticking to it! If you create a game plan for yourself when it comes to spending money, you’ll be less likely to overspend, make impulse purchases, or just simply be unaware of your spending habits.
So, take the time to sit down and calculate how much you need each month for the essentials like rent, groceries, and bills, subtract it from your monthly income, and see how much you’ll have leftover afterward.
If you have money left over, consider adding a portion of it to your emergency fund or your savings account, then see how much leftover money you have for other discretionary spending like eating out or going to a movie. Try this out for a month or two, and readjust your calculations as needed for your unique situation.
6. Eat at Home
Part of sticking to your budget and keeping your spending at bay is choosing to eat at home rather than eating out at a restaurant. While it can be tempting to hit the drive-thru on a busy night or order in when you don’t feel like cooking, our mothers have taught us that these costs can add up and keep you from meeting your savings goals.
Try to create a meal plan for the month ahead of time, which can save you precious time and money as the month progresses and you’d usually reach for the take-out menu. Of course, you can still frequent your favorite restaurant every once in a while but try to make it more of a habit to cook for yourself at home to make smarter money choices.