You ever notice how there are older people that don’t know the first thing about the world of personal finance, yet they seem to be experts at saving money? These people have also not heard of personal finance gurus, such as, Dave Ramsey or Suze Orman, or even Frugal Dad. Yet they still save money. They don’t read personal finance blogs nor do they ever want to listen to a full personal finance podcast.
Photo by eyg2158
Many of us twenty-somethings are completely lost sometimes when it comes to personal finance, yet we have all the information about money management available to us within a few clicks. We have a lot to learn from older generations when it comes to saving money.
How do these old school people manage to save money? What are their money saving tips?
They follow the “pay yourself first” mentality.
Instead of waiting for the end of the pay cycle, these ambitious individuals put their money away as soon as their paycheck comes in.
Whether they choose to invest in CDs, mutual funds, risky stocks, online savings accounts, or keep it under their pillow is irrelevant. Savings come first. Bills come second. Third is the necessities of life. Whatever is left over is used to enjoy life a little.
The key takeaway is that savings are always done first. Before you buy that new cologne it’s imperative that you have reached your set savings target for that pay cycle or whatever deadline you have set for you financial goals. If not, then the new bottle of cologne is going to have to wait.
They live below their means.
Not a revolutionary concept but a getting rich slowly basic that needs to be reinforced into all of us. These people are usually the millionaire next door that drive the car you would never dare step foot in because it’s embarrassingly ugly. They will never be the nicest smelling person in the room nor will they wear the most expensive pair of shoes.
These old school money savers understand how much money they earn and their lifestyle is directly proportionate to their income. If they earn $50,000 a year before taxes, they will likely not go all out and buy a BMW. They simply don’t see the need to acquire debt for a car (or home for that matter) that doesn’t fit their lifestyle.
They avoid external influences.
Advertising does have an affect on everyone. However, it is more severe on certain individuals. The old school money savers are less susceptible to fall victim to new age marketing techniques. How come? Because they have everything they need in life and don’t go looking for more. Sure they may occasionally splurge and buy something they really don’t need all that much. At the end of the day these scenarios are few and far in between.
Impulse purchases are kept to a minimum.
You have to work for their money.
It is fairly easy to extract money from most of us. The old school crowd feels that everything is a scam. They do not want to hear your sales pitch. They will not even humor you by pretending to listen to the sales pitch. You have to work your butt off to get your hands in their pockets.
You will have to sell something really good at a bargain price to get into their wallets.
At the end of the day we have a lot to learn from these old school folks (don’t worry guys I’m not calling you old, just old school).
Are there any other old school money saving tips that I missed?
What have you learned from older generations about saving money?