Every generation is different from the other. Their lifestyle, spending habit, as well as money management style is very different. When we think about our parents’ generation, they focused on long-term investment investments, while the millennials focus on short-term investments. Thus, in many ways, the financial management of the previous generation differs from the new generation who knows what they want.

We may feel like laughing at our parents’ financial management style, but there are many lessons that we can learn from them which will improve our financial planning. Now, let us look at those lessons that we can learn from our parents to make wiser money management decisions.

short-term investments

Live below your income

We may mock our parents for being miserly and living below their income. But this is one of the most important steps in financial planning that can help you achieve your financial goals quickly without any hassle. With every rise in our paycheck, young people tend to rise their spending habits. They feel that their new paycheck can balance out their new spending habit.

Leaving below budget will help you stay humble and will fight the urge to spend unnecessarily. So, stop mocking your parents for being miserly. Remember that one of the richest men, Warren Buffet lived in a small house even though he could afford many mansions.

Save a portion of your paycheck

The new generation has a thirst to explore and experience everything. And as a result, they exhaust their paycheck by the end of the month. Get into a habit of saving a portion of your paycheck to use in emergencies and to secure your retired life. Growing your saving will help you remain stable even if you are hit by a crisis like losing your job or sudden health problems.

Invest in long term

Even though the modern generation is adventurous and has a motto of living in the moment, investing in the long term is very essential. The new generation tends to make many small investments like investments for traveling and buying jewelry etc. Along with investing in short-term investments, start investing in your long-term goals. Invest in your children’s education, purchase a house, or secure your retirement life.

Create a spending plan

We might have often seen our parents or grandparents noting down all their expenses. You might think that it is a hassle to note down all your spending. But making a spending plan and noting down where you spend your money is a very wise financial decision. Budgeting will help you set your priorities and will help you understand where your money is going.

So, follow these money mantras of the older generation to make wise financial plans.

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