What My Dad Taught Me About Money

September 28, 2007 · Filed Under · 10 Comments 

Father and SonAs mentioned in any earlier post, my Dad is a pretty frugal guy and while I was growing up he tried to instill in my sister and I certain values when it came to money and finances. Some I listened to and followed, while others I didn’t do until I was a man with a family of my own. Here are a few of his bits of wisdom that really stick out to me:

  1. Earn more than you spend. By spending less than you earn each month you can build real wealth.
  2. Don’t get bored. When you get bored you tend to buy stuff you don’t need. Idle hands are the devil’s workshop.
  3. Put away a little money each month. As a man in his late 20’s my Dad was able to save enough to buy a tri-plex in Los Angeles in the late 1960’s. As his tri-plex increased in value, he kept trading up until he owned a large apartment complex.
  4. Take advantage of credit cards. Not to buy stuff you don’t need, but to help your credit rating. Pay them off every month, and they will greatly help your credit score so you can get better financing.
  5. House first, retirement later. He strongly believes that a young adult out of college should focus on saving for a down payment on a house rather than tying up money in a retirement plan. Once you are into your first home, then start to consider retirement planning.
  6. Keep your money for as long as possible. Don’t pay your bills as you get them, instead pay them a few days before they are due. You might as well earn interest on your money for as long as possible. He always tells me this is especially true with your property taxes.

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Comments

10 Responses to “What My Dad Taught Me About Money”

  1. chica with issues on September 28th, 2007 6:00 am

    My dad’s only money “wisdom” = It only costs a little more to go first class, but you can’t stay as long.

    Gee, no wonder I have a lot of credit card debt! :)

  2. Kyle on September 28th, 2007 7:05 am

    LOL, yeah I hate those 2 day trips to Hawaii! At least he always had leg room. Thanks for stopping by and leaving a comment.

  3. Fabulously Broke on September 28th, 2007 3:43 pm

    Those are really good points.

    My dad only told me about turning off the water and saving the hydro/utilities costs.. but nothing much beyond that.

    So.. I learned the hard way. LOL

  4. Tish on October 1st, 2007 10:16 pm

    Sounds like your dad is a wise man!

    I always pay my bills just a few days before they are due. I pay everything through my bank’s online banking system (no stamps required – yet another money saver!), and it’s so easy to set everything up to automatically pay just before it’s due. Whenever I receive a bill, I log on and schedule it to pay just a few days before it’s due. It evens out your cash flow, everything is paid timely, and your money stays in your account as long as possible.

  5. DR on October 9th, 2007 3:18 am

    I learned from my parents how NOT to handle money. On the bright side, the lessons were very effective!

  6. Kyle on October 9th, 2007 11:26 am

    DR, good attitude. Gotta try and learn from others mistakes otherwise we are bound to make the same ones ourselves.

  7. Melitsa on October 22nd, 2007 6:13 am

    Wise words from your dad.
    My parents both were frugal and taught by example many things. I wish they explained more how to do these things but they can’t do everything for ya right!

    My dad taught me to plan ahead and see the future. You have to start smaller than you think and the rewards will be bigger later on.
    My mum taught me to be patient, set goals and go about them slowly. Don’t pay attention to what everyone else is doing otherwise you may get discouraged. Although you can’t follow this advice is all situations. It really does help when you’re next to a big ticket item :)

  8. SAHMmy Says on October 22nd, 2007 3:30 pm

    Great tips! Re #6: it takes focus to hold out yet never pay late, but that extra few dollars in interest each month makes up for the necessary attention.

  9. Richard Spanton Jr on April 16th, 2008 1:00 pm

    Great Article!

  10. Brenda on January 1st, 2009 6:33 am

    My Dad taught me two things about money.
    1. I would rather shop for a nickel than to work for it.
    2. Money doesn’t mean anything.The lack of it means everything

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