Hey Guys…I’m talking to you, Clay and Jake Elliott. Your dear ole’ mom has been doing a writing challenge during the month of November and guess what……??……today I get to give you some advice. So here it is…”What I Wish I Knew About Money… at your age!!!!”
BE SAVERS!! I know you are well aware… and you’ve heard it countless times… save money! Our grandparents were good at this but today, in our society…we are all about instant gratification. I can’t stress this enough….it’s important and you’ll be to flippin’ thrilled you did this when you get our age.
Here’s a list from the school of hard knocks of things that might help you be savers!
1. Don’t make emotional decisions with money. “Oh…you’re sad…let’s go out to eat. It’s Friday….let’s go out to eat! I’m bored….let’s go out to eat! Hey…ya wanna go out to eat?” Spend your money on purpose and tell it what to do. Find your weak spots and prepare ahead of time. Eating out is a weakness for us… so when we, eat before heading to town, make a menu, shop outside isles of grocery stores, look for sales, and shop with cash…you would not believe how much we save!
2. Build a 3-6 month emergency fund. Average your past three months to know what you’re spending per month on bills, grocery, fuel, clothes, etc.. There’s your monthly average. I know you already know this…just a reminder. Even if it’s a slow process, it’s better than nothing.
3. Invest early in your future. Once you start this step, open a Roth IRA with 15% of your income. We like Roths because they grow tax free as you will pay tax up front. Second, if you have a job that offers a 401k make contributions to that as well, especially if they match what you put in.
We learned long ago that insurance was an important part of our life. Here’s a link for the insurances you should have. But, don’t feel overwhelmed by the list. Health, Life, (which is really cheap btw), and auto, would be the top three. Homeowners, or renters is next and work your way to adding the others. We should have gotten it before dad had a wreck with his horse and before our house burnt down. Thank God, He’s the provider of our needs and He took care of us and always does! He will do that for you as well.
We learned however that insurance was a way to avoid dipping into our emergency fund and helps us avoid debt, so as our income increased, we increased in the insurance area.
Speaking of that emergency fund, it’s handy if that transmission goes out or if anything else break loose when you least expect. And if ole’ sorrelly breaks in two and your wife has to load you up to go to the ER….you’ve got money for insurance deductibles.
Keep your emergency fund in another bank, in a money market account. Do not…I repeat…Do not put it in your checking account or a savings account attached to your checking account. It’s to much of a temptation when that shiny bit , or the horse “on sale” shows up on Cowpokes Exchange. Now, don’t get bent outta shape, you both are capable of building your own anyways…..so get after it. And you’ve both have made good horses outta crap horses and made good horses outta colts, so good for you.
With all this savings advice, my best advice is, live below your means, stay out of debt and be happy with what you have. Don’t be afraid to increase your income but don’t ever use people to get there and thank God along the way.
You know, I love you both! And yes…you have heard this advice your whole life….moms are allowed to repeat themselves! I think you both are pretty talented and intelligent young men. I’m proud of the decisions you both are making and I can’t wait to see what God has in store for your future. This has been fun and free advice but remember…my birthday is this month! Just jokin’ but really…it’s in 21 days…mark your calendars! Have a great day men!!
love,
mom
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