Financial Lessons You Can Learn From Your Mother

She is the epitome of love and sacrifice. It is rightly said that God could not be everywhere, so he made mothers. While her care and dedication for everyone is well-known, observe a little closer, and you will find her imparting crucial financial lessons.

Imbibing them can help you stay on a solid footing and address financial goals with ease. This Mother’s Day, let us learn essential money lessons from someone very special to all of us.

Save, Save and Save

Mothers are habitual savers. Since time immemorial, they have saved every penny coming their way only to utilise it when required. One of the most vital money lessons, savings is one of the cornerstones of personal finance. Disciplined savings is essential to build a corpus for short and long-term goals.

During Covid, when household income took a significant hit, mothers of several households used the money saved to overcome the challenges. Hence, you must aim at saving money as a penny saved is a penny earned.

For forced savings, invest in mutual funds via SIPs, where fixed money is deducted from your bank account and invested in your chosen fund.

Remain Calm During Challenging Times

Look around, and you will probably find your mother the calmest person in times of adversity. Her calm demeanour goes a long way in addressing the situation and overcoming it. To be financially independent, you need to overcome adversities and face them head-on. A calm and composed approach can help you do so.

If your investments are into equities, this attribute is required even more. Equities are a volatile asset class, and price fluctuations can be wild. If you fret at the hint of the slightest volatility, things will not work out as expected.

Create a Budget

Creating a budget is one of the essential personal finance lessons. A budget serves as a blueprint that outlines income and expenses. You will find your mother formulating a monthly household budget to ensure things are smooth and all needs are met with ease.

Create a household budget to use your money wisely. Opt for a 50-30-20 budget rule where you spend 50% of your income towards addressing needs, 30% on wants, and save the remaining 20%. Given the current situation, budgeting is all the more essential for prudent use of your money.

Save for Big Purchases

When it comes to big purchases, mothers often use their savings to finance them. Generally, they don’t channelise household budgets for making such purchases. A vital lesson to learn this Mother’s Day is to save regularly if you want to buy anything big and expensive.

Savings will ensure that you don’t divert funds earmarked for other goals. The quantum of savings will depend on what you want to purchase. The amount will be more for stuff like a house or car and less for items like mobile phones.

Keep it Simple

This is one of the most essential yet overlooked money lessons. Mothers keep things simple and straightforward. You may find them noting down the smallest of things in their diaries or saving even the smallest amounts.

Finance is no different. Imbibing this lesson can help you overcome confusion and dilemma. Complicating savings and investments unnecessarily serves no real purpose. The simpler it is, the better will be decision-making.

Be Financially Independent

There are single mothers who are financially independent. They undertake their own monetary decisions and make conscious savings for retirement. A vital lesson, you must strive to be financially independent. Being so will ensure you can live life on your terms and not depend on someone else for your needs.

Prudent investment in different financial instruments, market-linked and fixed-income, ensures you have funds readily available as and when required. Being financially independent is all the more essential, especially during sunset years.

Being Frugal is Not Bad

There are multiple instances where you have seen your mother adopting a frugal lifestyle. You will rarely find her spending on things that she doesn’t need. In other words, she hardly indulges in wasteful expenditure.

Families adopting a frugal lifestyle had a soft landing during times of Covid. The case was different for those who had a lavish lifestyle. Hence, it pays to adopt a frugal lifestyle that will help you sail through choppy waters with ease.

Conclusion

These vital financial lessons learned from mothers can help you overcome hiccups in your financial journey and accomplish life goals with ease. Embrace them wholeheartedly this Mother’s Day and put them to best use. Happy Mother’s Day!

Source: Nuvamawealth.com