Hidden financial truths and tips in the advice of your beloved mom

Profile Picture
By: Good Nelly
on 22nd May,2012

Mothers are always giving advice to their children. They love to say the same thing to their children over and over again.
Hidden financial truths and tips in the advice of your beloved mom

Mothers are always giving advice to their children. They love to say the same thing to their children over and over again. They love to utter their favorite phrases till the children learn them by heart. Sometimes, children get totally bored of hearing the same old phrases before leaving for school or office. However, little do they realize that there are hidden financial advice and truths in those phrases. So, next time your mom utters her favorite line, listen to it carefully and dig out the hidden financial advice. Who knows, you can become a wealthy person by acting upon the financial advice given by your mom unknowingly.

Inherent financial truths in your mom's advice

Here are some popular phrases often uttered by the mothers. Find out the hidden meaning by going through the following lines.

1. Be careful when something appears too good to be true

All that glitters is not gold. If anything appears to be too good to be true, then be very careful. This same advice is applicable when you're going to make several investments. If anybody comes forward and gives you the best deal in the market, then think why is he ready to do so? Find out his actual intention. When you visit a supermarket for buying a certain product, think why the retailer is offering a product at a low price. Why is he not charging like the others? 

2. Try to avoid accepting toffees from the people you don't know

Don't accept sweets or toffees from the strangers. You don't know if the candy is at all good for you. Similarly, don't take financial advice from a stranger or unknown financial counselor. Find out his qualification, source of income and experience.

Keep it in mind that no one in this world works for free. Find out how the financial counselor gets paid. See if he is associated with any company. All the financial counselors charge a fee for their services. So, your financial counselor should also charge a fee for his services. If your financial counselor tries to sell a certain product to you, then make a thorough investigation on it. 
You can get helpful information about the questions you need to ask a financial counselor from the official website of National Association of Personal Financial Advisors.  

3. Look at the left and right side prior to crossing the road

Mothers tell you to look at the left and right sides of the road before crossing it. The same thing applies to your financial life also. When you're going to make an investment, look at its positive and negative sides.

If you're planning to purchase a vehicle, then try to determine if it will be beneficial for you. Find out if would have been better to use the money for building your nest egg. Think what you are sacrificing for purchasing this vehicle. Are you sacrificing your kid's college education fund to fulfill your dream? Analyze all the aspects in a cool state of mind.

If you can't decide between boosting your retirement fund and clearing your debts, then talk to a financial counselor. Or else, you can divide your money into 2 halves. Spend the first half to pay off your debts. Use the second half of the money to contribute to your retirement funds.

Finally, sometimes mothers advice you to not follow the others. This means you don't need to do something just because others are doing it. For instance, if most of your friends are walking on the street with a blue hair, then it does not mean that you need to change the color of your hair too. You'll just become an average person. You won't be a unique person anymore.

Similarly, don't follow other people while making investments. For instance, in a bearish market, the prices of the stocks fall sharply. All the people try to sell their stocks as early as possible. However, this does not mean that you should sell your stocks also. Wait for the right time to sell the stocks. The market will not be same always. The market will recover at some point of time. You should sell your stock at that time.

The price of the stocks generally remains low during the bearish market. So, use this opportunity to purchase the good stocks at a low price.

No votes yet

Page loaded in 0.733 seconds.