A few weeks ago on a flight to Dallas, I had the pleasure of meeting a savvy entrepreneur. We had such a good conversation that we ended up talking the entire flight. Yes, we would have been the two people annoying you with our endless gabbing. When I told him I was a financial coach, he happily shared the best financial advice he ever received, “Worry about how much you spend versus how much you make!”
As simple as those words may seem they are absolutely true. I’ve heard this expressed in a number of ways like “It’s not how much you make, but how you spend it.” Think about the multimillionaires who squandered millions and filed for bankruptcy. On the flipside, you have teachers earning an average salary who retire with millions.
Someone asked me, “If you could offer up one piece of financial advice, what would it be?” I responded, “Watch where your money goes!” In other words, keep a close eye on how you spend your money. It’s the most important lesson I learned from my wealthy bank customers — who watched every penny and questioned any bank fee.
Some financial words of wisdom:
- “A penny saved is a penny earned.”
– Benjamin Franklin - “If you can, you will quickly find that the greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich. Yeah you have to give things up and that doesn’t work for everyone, particularly if you have a family. That is reality. But whatever you can save, save it.”
– Mark Cuban - “The art is not in making money, but in keeping it”
– Proverb - “Price is what you pay. Value is what you get.”
– Warren Buffett - “Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make. ”
– Donald Trump
What’s the Best Financial Advice You Ever Received? Please share it using the comments. I’d love to hear from you. 🙂
Photo: WTL photos
Always look at the ‘true cost’ of what you’re buying.
For example, if you drive 30 min to a store to save $5 on a shirt, your true cost includes the 30 min of your time + gas driving to the store.
You might be better off just paying the $5 extra…unless the personal happiness (utility) you get from finding a bargain exceeds the 30 min you drove 🙂
If it’s on sale but it doesn’t fit-you are wasting your money. Spending more on something that is high-quality is worth it in the long run. All advice from my shopaholic friends and family.
During our financial seminars with Primerica, I learned saving a little over a long period of time doubles when it is invested correctly.
Never go grocery shopping on an empty stomach 🙂 in other words: don’t make impulse investments based on short-term needs.
Thanks for sharing everyone!
@John – Yep, you’re absolutely right. It makes me think of people who drive to Indiana to save $ on gas.
@Thuy – Great tips! Your first point made me think of some shoes I bought during college that were too small, just because they were a great price!
@Sharmion – Compound interest is a beautiful thing!
@Wes – You’ve got that right! Impulse purchases can really add up.
The best advices are from the Bible – have a look – http://www.christianpf.com/money-in-the-bible/
the most expensive item is the one that does NOT work
live below your means.
@Brenda Phenomenal answer Brenda!!! Thank you for sharing 🙂
@Sri You’re right about that, especially when it can’t be returned!
@Erika That’s one of my favorites. Thanks for adding it!
The best advice I ever received was “always save some money for a rainy day because it can come when you least expect it.”
When you receive advice from others, make sure it makes sense for you. Don’t feel obligated because of the person’s title or who it came from.
Best financial advice-Tithing.
Thanks for sharing your best advice Mike! Great point where you say “When you receive advice from others, make sure it makes sense for you. Don’t feel obligated because of the person’s title or who it came from”, especially when it comes to investments.
Thanks for sharing yours Joe! I agree tithing is important.
“Don’t count your chickens before they hatch.” My mama says this all the time regarding making plans with money or resources you’re expecting, but don’t currently have. This was a great adage to remember when I was taking freelance projects. Sure, the client owes you, but you can’t count that money until you are paid!
Also, my grandmother used to tell us to make sure we set aside a little money to ‘pay ourselves’ for our hard work. In the dizzying madness of paying bills, saving, and managing our households, we shouldn’t forget to treat ourselves for working hard and taking care of business, even if it’s just to set aside $1.00 for a Sunday afternoon milk shake.
Great blog topic! I enjoyed reading everyone’s comments!
Sheree, thanks for sharing your words of wisdom. Those are both great tips – the world today makes it so easy for you to think of spending before you have it with credit and payday loans. Your grandmother’s advice is absolutely golden. 🙂