One of the things that I’ve struggled with most of my adult life is managing my finances, and establishing financial stability. For years I worked and earned pay to cover everything, but for reasons I could never truly pin, I was always coming up short. I know many people, especially those in my generation, have these same struggles. Ironically, my mother had financial management down pat. She always shared insightful gems, and although I heard everything she said, I at times didn’t take heed and apply it to my life. Now that I’m a little older (emphasis on A LITTLE, lol) I’m definitely taking those tools more seriously, and seeing the progress in my financial management. I wanted to share some tips for my fellow short-attentioned folks out there who may need some tips on how to manage their finances more efficiently, that my beautiful mother provided.
The first thing I asked my mom was at what age did she finally become financially stable, and she stated that it was in her 30’s. That definitely seems realistic. Next, I asked her what was causing her instability, and like most people, her response was frivolous spending, too many credit cards, and having no budget, or financial plan. Afterwards I asked her to provide some tips on sustaining financial stability, and as usual, she dropped clear, sensible info.
“Establishing financial stability starts with always having savings. You must have a realistic budget, and a plan to pay off your debt. You also need to plan your spending.”
When I asked her to elaborate on her experience, and provide some more gems to those struggling, here was her response.
“At least 25% of your net income should be in a savings account, or stashed. Saving money is the biggest challenge, and sticking to the budget. Overspending at the store is common, but you have to be disciplined to see progress.”
Next, I asked my mother what her best financial decision was, and she immediately responded with “one of the best decisions to make in order to sustain financial stability is to invest in a 401K.” Now this is definitely true, because I’ve seen her 401K and let’s just say…my mom is very comfortable.
To conclude our convo, I asked her to give a closing message to the generations under her. Her advice was simple, yet sensibly accurate. “Develop a 5 year plan. A major part of your plan is a budget. Continue your education, set goals, set your budget to meet your goals, and save as much money as possible.”
Simple, yet effective if you take it seriously, implement discipline, and do it right. Shout-out to my wonderful mama, Michelle Phillips for the tips.
