Older generations have decades of experience to share with younger people. When it comes to managing your money better, listen carefully to their life lessons, to avoid making the same mistakes and to make sure you can live with greater peace of mind in the future.
Debt is more than money
We know that avoiding debt is difficult, and it can take a lifetime to shake off. But a lesson from the older generation is this: Debt is not just money owed. It means having to work longer and harder for no reward. It’s endless worry and a burden on your family. It’s the destruction of family and relationships. So, while you should work to reduce any debt (credit cards, bills and loans), your lifestyle shouldn’t come at the cost of your family and your future. Try to avoid building up debt in the first place, or get expert advice on how to manage it.
Don’t put off saving for retirement
Any retired person will tell you: The sooner you start saving for the future, the better. Putting off saving can greatly reduce your nest egg. It may seem a long way off, but paying attention to your retirement plan when you’re younger will pay off in your golden years when you can live with greater peace of mind.
Save for a rainy day
An older person will remind you that life is filled with unexpected expenses and situations. Avoid dipping into your day-to-day funds or long-term investments by building up a separate fund for emergencies. At the beginning of the month, whenever possible, set aside a portion of your salary for an emergency fund, to avoid spending from your savings.
Invest early and regularly, even if it’s just a little
An important lesson for the younger generation is to start investing early and regularly, and to make this a habit. Even small amounts can help grow your savings and investments. Then boost your savings as your income grows.
For more information on how to grow your savings and investments, speak to your Financial Adviser.
**Nicole Bruce, `25 pieces of advice from seniors to milennials’, Cheapism, 13 February 2020