It’s no exaggeration to say that the world has undergone massive changes since the 1920s. Yet, despite the passage of time, certain financial wisdom has endured. This article takes a look at financial tips that were just as valuable over a century ago as they are today.
Invest Wisely
Investments during uncertain times should be cautious and well-considered to safeguard your future. What most people don’t know is that it is actually very wise to invest during bad financial times, as everything is cheaper. Do your best to avoid short-term investing, as this only leads to losses.
Avoid Debt Like the Plague
Debt was an enemy during the Great Depression, and it still poses a significant risk to financial health today. There is such a thing as good debt and bad debt. Debt.org says, “If it increases your net worth or has future value, it’s good debt. If it doesn’t do that and you don’t have cash to pay for it, it’s bad debt.”
Learn Practical Skills
Practical skills not only save money but also increase self-sufficiency. Things like DIY home repairs, basic car repairs, sewing, and cooking can save you so much money in the long term. Cooking in particular is very essential, as you have to eat food every day, and it’s much cheaper to make it at home.
Be Frugal, Not Cheap
Being frugal and being cheap are two different things. Being frugal means being smart with your money and only using it for the basic things you need. On the other hand, being cheap is just about saving as much as possible without considering how it affects your well-being in the long term.
Save First, Spend Later
Putting money aside before you start spending ensures financial security and peace of mind. When you get paid, have a certain percentage you set aside that you’re not allowed to touch. It might be helpful to set this money aside automatically so you don’t even have a chance to look at it. CNBC recommends saving at least 20% of your paycheck every month.
Grow Your Own Food
Growing your own food can drastically reduce grocery bills and improve your diet. Even a simple vegetable garden can help you spend less on your grocery trips. It’s also healthier and will contain much fewer pesticides than what comes from the larger industrial farms.
Repair and Reuse
Before the age of disposable goods, repairing and reusing were the norm and remain a wise practice. When you rip something, instead of disposing of it, grab a needle and thread and repair it. There are plenty of tutorials on YouTube that can walk you through the process.
Create a Budget and Stick to It
Creating a simple budget is like making a map for your spending. It’s important to check how much money you spend regularly and change your budget if needed. A well-planned budget helps you keep your finances organized and will help you avoid spending money that you don’t have.
Use It Up, Wear It Out, Make It Do, or Do Without
This old saying tells us to use things to their fullest and not waste them. Try to make your things last longer and think of new ways to use old items. This approach saves money and is better for the environment. It’s all about being smart with what you have.
Understand the Value of Money
Understanding money’s value is key to using it wisely. Teach kids about money early on. Avoid buying things on impulse because it can cost a lot later. Setting money goals helps you use money for the things that matter instead of wasting it on pleasing others.
Plan for the Long Term
It’s smart to plan for the future. Think hard about your retirement and set long-term money goals. Also, prepare for tough economic times, because you never know when things will get bad. Planning ahead gives you something to fall back on and can help you with anything life might bring your way.
Embrace Community and Sharing
Being very individualistic has made us forget the value of living in a community and sharing resources. Join local groups where you can share things with your neighbors. This can save you money and build strong friendships. Helping each other in tough times brings everyone together and makes the community stronger.
Prioritize Health and Well-being
Psychology Today says that taking care of your health saves money in the long run. Don’t forget about your mental health and try to keep a good balance between work and life. No amount of money in the world is worth your health and well-being. When you’re older, you’ll appreciate the good habits you kept in your younger days.
Keep Informed About Economic Changes
Stay updated with reliable financial news to help you understand what’s happening in the world economy. It’s important to be ready to adjust your financial plans when needed. Being well-informed lets you better prepare for future changes in the economy. Knowledge truly is power, especially when it comes to money.
Diversify Income Sources
Multiple streams of income can provide financial security in uncertain times. The College Investor says that the average millionaire has seven sources of income, which means that it’s rare to get rich off of one thing. On top of your employment, you can try things like weekend jobs, side projects, or good investments.
Save for Education
An investment in education pays the best interest for future generations. A good education is priceless, as it can pay itself off 10 times over and more. Education doesn’t start and end with school. It includes things like trying out new experiences, traveling, reading books, and listening to or watching content that nourishes your mind and soul.
Stay Humble and Appreciate What You Have
Appreciating what you have enriches your life far more than constantly seeking more. There are millionaires out there who don’t understand that they have much more than what others do. They keep working for more and more and more, and they’ll never be satisfied. You don’t want to be like them.
