Mothers are often our first teachers in life, and when it comes to money management and credit, your mother may have imparted some valuable lessons that you still carry with you today.
Here are three amazing ones to always remember.
Maintain a Budget
The first finance lesson that each of us has learnt from our mother is creating a budget. It's incredible how on point and effective your mother is at putting together a budget for all the monthly expenses. What's even more impressive is that they already know exactly how much money is going to be spent and where it's going before anything even happens. Moms really do run the world.
Live Within Your Means
This is an important lesson when it comes to money management. It means that you should only spend what you can afford, and not rely on credit to make ends meet. When you do use credit/loans, it's important to only borrow what you can afford to repay, and to always have a plan in place to pay back what you owe. Your mother knew that living within your means is the foundation for good financial health, and that it can help you avoid unnecessary debt and financial stress.
Save For a Rainy Day
When it comes to money management, this is another important lesson mothers know well. Your mother probably always kept some cash aside in the house. Having an emergency fund can help you handle unexpected expenses without having to resort to borrowings. Your mother knew that saving for a rainy day is an important part of financial planning, and that it can give you peace of mind knowing that you have a financial safety net.
Pay Your Bills on Time
Your mother was teaching you an important lesson about credit whenever she told you to pay your bills on time. Late payments can have a negative impact on your CIBIL score, which can affect your ability to get credit in the future. She knew that paying your bills on time is one of the most important things you can do to maintain a good credit standing in future.
Save up (no matter how small the amount is)
Do you recall the piggy bank that your mother gifted you? It served as a valuable tool in your financial planning education. The piggy bank introduced you to the concepts of both short-term and long-term goals. It taught you how to begin with small contributions and eventually budget for larger ones. The pleasure of purchasing something with your own hard-earned savings was a feeling that cannot be matched. Even now, as a proud homeowner or car owner, that feeling remains just as exhilarating.
In short, your mother may have taught you some valuable credit lessons without you even realizing it. Living within your means, saving for emergencies, and paying your bills on time, help you manage your money well and maintain good credit. So, remember to thank her when you apply these lessons to your money and credit management strategy. Start your journey towards financial planning by clicking here
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