By Bill Taber
Financial literacy is an essential life skill that many schools overlook. Without formal education on the subject, it falls to parents to guide their children in understanding money. If you could only share two key financial lessons with your kids to help them build a strong financial foundation, what would they be?
Here are my top choices.
Spend Less Than What You Earn
There’s a lot in life that we want but don’t necessarily need. It’s essential to distinguish between the two and live within your means, or put differently, spend less than what you earn. Just because you can afford something doesn’t mean you should buy it. Being frugal and living a simple life can lead to greater happiness and satisfaction.
One of the main reasons why people struggle financially is because they live beyond their means. They spend money on things they really can’t afford and end up in debt, which can be very difficult to get out of and cause stress in your life.
Living with debt created by overspending your income not only causes short-term anxiety over how to pay it off, but it can also cause long-term damage to your finances by preventing you from saving or investing toward your highest priorities.
There is no way to experience true financial confidence if your spending is always causing you to live paycheck to paycheck. Because of this, I believe that spending less than what you earn is one of the most important financial lessons that people can learn.
Use Your Money With Intention
What many people don’t realize is that intentionality is a key component to financial success. When you get to a point where you can pick and choose what you spend your money on, and which opportunities you save and invest in, you will experience true financial independence.
It doesn’t happen overnight, though.
It starts by building an adequate emergency fund, so you have a cushion in case unforeseen expenses pop up. This is the first step in intentional wealth.
Once you have a solid financial foundation, you can expand your thinking about how to use your money with intention by identifying what it is you truly want from your wealth. Whether you want to travel, invest in your future, or help others, there are endless possibilities for what you can do with your money. The key is to be mindful and purposeful with your spending. If you’re not sure where to start, consider these ideas:
Create a budget: Plan ahead. A budget helps you determine where your money is going and where you can cut back so you have funds available for your highest priorities.
Invest in yourself: Whether taking a class or starting a business, put some of your money toward your future.
Give back: Consider donating to a cause you care about or volunteering your time. Doing so activates the “Law of Attraction”—what you give away tends to be attracted back to you. You can donate your money or your time. There are many ways to give back without spending any money at all.
No matter what you decide to do, remember that you have the power to choose how to use your money. By being intentional with what you want to achieve, and the steps you are willing to take to get there, you become more likely to actually follow through with and achieve your financial goals.
Spend your money with intention and you’ll be on your way to financial freedom.
We’re Ready to Support You
If you want to create a financial plan that empowers you to spend less than what you earn and make intentional spending decisions, TABER Asset Management can help guide you. Our goal is to help you streamline and focus your financial life, giving you more time and mental clarity for what matters most.
Are you interested in learning more about how we can assist your family or business? Get started today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com.
About Bill
Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm, in Des Moines, Iowa, that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.
Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered.
In his spare time, Bill enjoys giving back to his community and spending time with his family. His hobbies include traveling, gardening, reading, and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and being in nature. To learn more about Bill, connect with him on LinkedIn.
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