In the spirit of Mother's Day I wanted to shine a light on just how wise Mom’s are when it come to money. In preparation for writing this article I asked each team member for some lessons that they learned from their Mom.
Never Pay Full Price
This nugget comes from Momma Barnett. My Mom is an infamous value shopper. I think the only thing she has paid full price on was filling up her car with gas, and that’s only because they wouldn’t negotiate with her. I learned that patience is a virtue and to monitor the stuff that you want and don’t buy until it goes on sale. I have also become a comparison shopper, as I will check competitors prices to make sure I am getting the best deal!
Before you buy something, make sure you really want it.
This submission is from Mrs. O’Reilly. The principle here is founded in only buying items that really matter and will bring you joy. One rule that we implemented in our household is to not buy something immediately. On Amazon, we have to item in our “cart” for 3 days before making a decision to purchase. This allows some time to really determine if you actually want it. Effectively this serves as a cooling off period and helps prevent buyer’s remorse.
Pay Yourself First
This is great advice from Mrs. Read. I have found that money has a way of getting spent if it is in your checking account. Many individuals save whatever is left over after paying bills. One potential issue here is what I call Lifestyle Creep. Essentially, if you do not pay close attention, your spending can catchup to your paycheck. A way to help avoid this is to fund your savings goals first. That way, you are operating you day to day life after you have set your defined savings aside.
Save Save Save!
The full saying from Mrs. Yourtz is “Save, Save, Save, don’t be poor like us”. This is a great piece of advice! I think it’s every parents goal to have their kids do better / have it a little easier than them. As I mentioned above, saving can be a very difficult proposition if you do not prioritize it. I have found one of the best ways to accomplish a goal is to automate it. 401k’s are a great avenue to help us automate saving. The money is deposited into your account before it ever touches your hand. Another great tip is when you get a raise, increase your 401k savings before you get accustomed to the higher pay. Also, many companies now offer the ability to save into Health Savings Accounts automatically. Not only are you able to get a tax deduction on the savings, you are also setting up a fund to pay for future unknown health expenses!
Buy what is important, not what is frivolous
Our newest team member, Josh, submitted this one. I think this is a very important lesson given the last year. Covid has greatly impacted our budgets over the last year. You might find yourself with excess money from the vacations that you were not able to take last year. Being stuck in the house, you might have turned to online shopping to help pass the time. Being able to buy in the convenience of your home is a double edged sword. There is very little barriers preventing you from buying more “stuff” given we can do it on our phone. I am not saying that people should not buy things, just be thoughtful around what value it will create in your household.
So whether it's Mother's Day or not, let's be sure to give our mothers the credit they deserve for being so wise!