Personal Finance Tips from Famous Dads

Happy Father’s Day! ELM3 wants to take a moment to thank all the dads and grandfathers who have provided so much love and support to their families. Our hearts go out to every family who’s celebrating this holiday virtually or in-person, and no matter how you spend the day, we hope you enjoy some money tips from dads around the world. 

“Personal finance isn’t rocket science. It’s just common sense. It’s how your grandparents lived – if you don’t have the money, you can’t buy it!” — Dave Ramsey 

Budgeting can be summed up in one sentiment — always spend less than you earn. Though described in just a few words, saving is far from an easy task. You need to have a deep and honest understanding of your spending habits and be willing to sacrifice immediate pleasures for long-term gain. Using a budgeting app on your phone or generating a spreadsheet can help. It’s also important to have short and long-term savings goals in order to stay focussed on what matters most. 

“The important thing to know is that life will always deal us a few bad cards, but we have to play those cards the best we can.” — Lance Gokongwei 

Such advice is so pertinent during difficult times such as these. While markets may seem volatile right now, it’s important to remember that new opportunities arise as markets shift. For example, equities in many healthcare and technology companies have seen gains. I like to think of the wildfire metaphor during chaotic times. Wildfires cause a great deal of destruction; however, new plants always grow out of the ashes. New forests are born, and the world keeps on turning. 

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” — Will Smith

Retail therapy can feel wonderful during difficult moments, but overspending on frivolous items may cause more stress than it’s worth. Before spending, think through the value add of the item you’re purchasing. It’s always best to prioritize spending on experiences, such as buying a fire pit you can enjoy with your family on a cold night. Make sure your spending is in line with your values and your savings goals, and resist impulse spending based in anxiety or sadness. 

“You don’t have to swing at every pitch. When you’re ready to invest [in a stock], it looks like a fat, slow-moving ball.” — Warren Buffett

As is the case with spending, impulsivity in investing can have dire consequences. When gripped by fear about the stock market, try to take time to find calm before making any decisions. You don’t have to sell every time a stock dips, and you don’t have to buy every time there’s a hot new equity on the market. Stay Calm and Trade On (after taking a few deep, slow breaths). 

“Money can’t buy life.” — Bob Marley 

Last but certainly not least, it’s important to remember that money is not the most important thing in life but rather a means to an end. Money allows you to care for your family and provide them with a home. Money allows you to fund the experiences you most enjoy and feel comfortable and safe. Yet, the bottom line is that your loved ones and vibrant experiences are the true fabric of life and of joy. 

Sources: imoney, Student Loan Hero, Lifehack