One of the best pieces of financial advice I received was from my mum at age 10... and she’s reminded me of it every year since.
We were living a small country town, when she first gave me the advice. My mother is a strong country woman with salt-of-the-earth values. She was very much like all parents, wanting to see their kids grow up and be successful for peace of mind.
Her advice was: ‘don't spend money you don't have’.
It was good advice but I’ve certainly broken it many times over the years! I think back to times where I was guilty of wanting life’s pleasures without the funds being available. The new car... the extra few dinners... that holiday that couldn’t be refused. These things all quickly turn into buyer’s remorse when the budget doesn’t stretch that far. We all sometimes ignore good advice but whenever I did, my mum’s voice would ring in my ears.
I am now the principal and wealth manager at Yellow Brick Road Mount Isa and Darwin. These iconic locations are famous for landmarks and events like the Mount Isa’s rodeo and the mines which supply metals for exports that benefit our nation. Darwin is famous for diverse activities, markets and festivals with local landmarks and national parks close by.
Working in my current role, I often think back to mum’s advice.
I am sure many of us in each generation think we know better but that’s not always the case. It often seems easier to find a dollar plus interest to buy something you can’t afford than taking the time to work and save for. There is good and bad debt when it comes to our financials. Bad interest like credit card debt is an overwhelming reality for many impulsive consumers, forcing families and individuals into hardship.
So to this day, I teach that advice to my children (I sound like my mum), discuss it with my friends and I work closely on budgeting, saving and bad debt reduction with my clients. With some good advice and a plan, a focus on good debt borrowing, many people don’t realise their potential to get ahead.