I came across this excellent article that lays out seven “Financial Truths”. I find it difficult to decide on seven, but they have done an excellent job.
Since I am most inspired by Financial Literacy in children, I think #6 Wants are not the same as needs is the best advice. If you can instill this in your children from an early age, then I think the remainder will fall in line, or simply be easy to teach.
This list is:
1. Nobody cares as much about your money as you do.
2. Spend less than you earn.
3. Shop around and simplify where it makes sense.
4. You need to pay yourself first.
5. Budget budget budget.
6. Wants are not the same as needs.
7. Using cash when you can is best.
Hat tip to Dumb Little Man; tips for life.
I’d love to know what you think.
Great Barrington, MA