In “Rich Dad Poor Dad,” Robert T. Kiyosaki laid out the advice that he says the wealthy pass on to their children. Whether rich or poor, many fathers try to guide their children toward financial responsibility. In honor of Father’s Day this month, we offer some fatherly advice for managing money.
- Hard work pays off. Whether they articulate this message or not, many fathers teach by example when it comes to emphasizing the value of hard work. Having a family is a big responsibility, and hard work comes with the territory.
- Make time for the things in life that are truly important. While working hard is an excellent way to get ahead, it’s equally essential to take time to enjoy yourself and focus on priorities. There needs to be time for family, friends, and fun as well as hard work.
- Start saving early. This is a great lesson that most children are never too young to learn. From the time they begin getting an allowance, children can begin to set aside some money for savings. Teens and young adults can start saving for retirement when they get their first jobs.
- Don’t try to time the market. This advice couldn’t be more timely. With the stock market experiencing major volatility, many people instinctively rush to pull their money out. But smart dads know that riding out the lows is usually the best strategy. The market will rebound eventually.
- Never stop learning. The best way to achieve your financial goals is to continually educate yourself about financial matters. Learn about changes to the tax code, industry trends, and emerging financial instruments. Don’t be the first to try the shiny new thing, but don’t stick your head in the sand, either. Maintain a curious and open mind.
- Make a budget and stick to it. Whether you use an Excel spreadsheet or an old-fashioned ledger, creating a budget is the best way to get a handle on your finances. Understanding where your money goes will help you manage it better and allow you to adjust your spending so that it aligns with your values and priorities.
Often, the father really does know best. But even when dad is out of his comfort zone, there are multiple resources for obtaining the financial know-how that you need to succeed. Contact us to learn more.