Years ago, when I was a very young man and earned my first real paycheck, my dear old dad gave me the best investing advice I have ever received: Never spend more than you earn. Of course, at that time, it went in one ear and out the other, especially since I was so excited to have earned a paycheck. But as I have grown older, I realize that this is probably the best investing advice a father could ever give his son.
Sometimes the simplest ideas, such as this one, hold pearls of great wisdom, if we only can see it. Everyone is always trying to find out the best investing secrets and looking for investing advice, but this simple advices is probably better than anything you can get from a PhD.in Finance, or some of your most successful Wall Street gurus. Just do not spend more than you earn.
This lesson was driven home once again in recent days. I had to go to a parent teacher's conference at my son's school, and since I was there a little early, I wandered around. There was a class being given that was a class for investing advice for kids. What lucky kids to have such a curriculum today! I was fascinated by the topics the class was discussing, and then of course I was totally floored by the final advice the teacher gave them since it echoed almost the exact words my father said to me all those many years ago. Yes, the teacher told the children that the best investing advice is to never spend more than you earn.
This may not seem like such great advice to you, but think about it. Do you know many people who spend more than they earn? Are you one of them? Maybe you feel that you are not, but if you own a credit card you most likely do. During the month you are charging things on your credit card, and then when the bill comes in, you cannot pay the whole thing because , like most people, you spent more than you made. If you are not one of those people, you should be the one giving out investing advice.
We may all know the theories about investing, but do we follow them in our everyday lives? There is not much point in knowing about the right thing to do if you do not do it. If you want to give one great inheritance to your children, give them this same advice, but make sure you show them by example. Not only will you be giving them good investment advice, but you will also leave them a nice inheritance because of the money you keep from not overspending!
Michael Benifez writes for http://www.LifeinPalmCoast.com , covering world of finance, mortgage loans, refinancing and insurance in Palm Coast, Florida and Flagler county. His latest article on real estate investing in Palm Coast Florida covers refinance options.