chief operating officer ground floor, a wealthtech platform that allows everyone to build wealth through real estate.
Following my previous article on the rise of women’s investing, I heard from several women who expressed a similar journey to me, where they are also responsible for their family’s finances. I also heard from women who reported that they still face resistance from male investment advisors who only want to talk to their husbands. Several people reminded me that it wasn’t that long ago that they couldn’t take out a loan or apply for a credit card without a person’s co-signature. After all, only in 1974 equal credit opportunity act was passed, helping women establish credit for themselves.
After reflecting on these stories, I thought more deeply about my own financial journey and some of the lessons I’ve been living (and saving for) to this day. Here are four financial lessons from four generations of women in my family.
1. Know what you’re saving for.
My grandmother was born in 1917 in rural Texas. My great-grandparents were very few farmers yet managed to save enough to send them and their two sisters to top universities. Keep in mind, this was a time when few women had the opportunity to go to college, and bachelor’s degrees (and careers) were mostly limited to teaching and taking care of yourself (you could become a flight attendant if you were really adventurous) !)
My grandmother valued education and hard work and gave me the importance of knowing what I was really saving for. After all, if you’re going to make financial sacrifices for a major purchase, it’s better to be sure of what you’re saving for.
Research supports this. as of 2015 Study From the Consumer Federation of America, having a specific, goal-based savings plan creates an over-focus on consciously spending and saving, leading to better progress toward financial goals. more than that, it is understood That goals with specific endpoints are easier to achieve than goals with open ended.
2. Buy the smallest house in the best neighborhood.
When it comes to education, career and finances my aunt doesn’t fall far from a tree. My aunt told me that when I was ready to buy my own house, I should buy the least expensive house in the best neighborhood I could afford. She advised that neighborhoods, especially planned developments, tend toward average prices. Especially in the last decade, tiny homes have increasingly appreciated, According For an analysis of home values by Realtor.com.
Having bought several homes over the years, I have seen his guidance come into play. When my husband and I bought our first home in an upcoming new development, we deliberately chose the smaller floor plan in the lower end of the development’s price range. However, I couldn’t help myself choosing the top-of-the-line fixtures (regrettably!). Sure, when we went to sell, our real estate agent priced the home based on the neighborhood only, regardless of our actual costs or the valuable additions we made.
They offer similar advice in the industry, and it’s also one reason real estate investors focus on fix-and-flip in up-and-coming areas: They stand by the better chance of higher returns. principle of progress,
3. Never buy anything you can’t pay for with a credit card.
Clearly, I was fortunate to be raised among strong women who were able to make smart financial decisions and own a level of financial independence. As a mother, I try to pass on the same financial knowledge to my kids.
One of the biggest lessons I’ve taught my kids is to never buy anything with a credit card that you can’t pay for right away. The interest accrual for credit cards is outrageously high. If you let it accumulate, you can be pay multiple times Finished for what you bought. the cost of this ongoing debt There is a big hurdle in the creation of wealth. One estimate states that approximately 75% of Americans carry a credit card balance each month and that the average amount of card debt exceeds $5,300. It’s easy for credit card spending to spiral out of control, so treat it like a monthly checking account.
4. Resist impulse buying.
Like many young adults, my daughter is interested in fashion and the latest technologies. When she was 14, she wanted to upgrade her iPhone and asked us to pay for it. If we worked out the difference we were more likely to buy the lower model or contribute the cash equivalent to the latest model. He quickly decided to have the best phone. We negotiated an hourly rate for jobs in addition to his current jobs.
In the beginning, she was enthusiastic: happy to help rake leaves, clean windows, and do whatever needed to be done. But, he quickly realized how many hours of his life he would have to sacrifice to pay off his debt. Recently, she admitted that it was through this experience that she learned the importance of weighing the value of things against hard-earned income. She now advises her friends to resist impulse buys: Think about how much they really need and how much it would cost to make it work (my heart was trembling!).
There are a number of studies that show how Gen Z members already Saving and investing for your future. It should be an inspiration to all of us.
Even if you’ve heard these lessons before, I hope they serve as a good reminder that good saving and investing is really based on fundamentals. After all, you should always obey your mother (and eat your vegetables)!
The information provided here is not investment, tax or financial advice. You should consult a licensed professional for advice regarding your specific situation.