Learning how to save money isn’t something you wake up one day knowing. It’s a process that you learn over time, often by watching how your parents manage money. If your dad was a super saver, you probably saw how important it was to save for a rainy day and invest money the right way.
Tips for Saving Money
In fact, dads are the people we usually look to learn how to manage money as an adult. After all, they’re dads, and know pretty much everything, right? So, whether you’re 15 or 52, here are five money tips your dad probably already knows.
Make Saving a Priority
Who doesn’t like to let loose and have fun? While treating yourself for a job well done is recommended, spending money on frivolous things isn’t. Especially as a young adult, it’s easy to think you have all the time in the world to start saving.
The thing is, not establishing good spending habits early on can snowball into poor spending habits later in life. You can offset this by setting up automatic transfers each pay. Choose an amount that doesn’t cut into your living expenses and cause financial hardship.
Put Money Away for College
Tuition can cost more than a pretty penny, so it’s important to start saving as early as possible. New fathers should start stashing away a percentage of their paycheck as soon as their baby is born. This not only offsets the cost of tuition but also gives enough time to save a lot of money. But even with this nest egg, your child may not have enough to cover all their college expenses.
You can also look for private parent student loans. These types of loans allow you to be the signer on the loan, which means you’re responsible for paying it back. If you choose to apply, it’s always a good idea to check your credit first to make sure there are no errors.
In addition, it’s also recommended that you only borrow as much as your child needs to cover any outstanding costs.
Learn How to Invest
When it comes to investing tips, there are some that make sense and some that do not and there is a right and wrong ways to go about it. You need to research the best ways to make your money work for you.
Research which types of investments will yield the highest return with the lowest risk. If you’re still not sure which is best, speak with a financial advisor.
Be Self-Disciplined
Some may say that being able to save money and being self-disciplined are the same. In theory, they do go hand in hand, however, saving money only to go and spend it all later doesn’t work.
You need to practice self-discipline and learn how not to spend just for the sake of spending. As your savings start to grow, you should plan for large purchases in advance.
If you do have to dip into your savings, you should already have a strategy to replace those funds quickly. You don’t want to start dipping into savings and not be able to put it back.
