Like we said in our article about bad financial advice, everyone out there has a piece of “wisdom” they want to offer you. But sifting between the good and the bad is no easy job. So we asked our Financially Fit Bootcamp Coaches about some of the best money advice they’ve received. Here’s what they had to say:
Save, automate and save some more!
I always thought the best money advice was to work hard at school, get a normal white collar secure job like a school teacher or in banking and then work hard until retirement, buy yourself a family home with a 30 year mortgage and live a happy long life. At 42 years of age I found the Financially Fit Bootcamp program after working for 20 years with no real savings or investments, stopping work to have a family and then returning to work as a solo entrepreneur with no money going into superannuation that a PAYG [pay as you go] worker receives. Now that I have been implementing the Financially Fit Bootcamp principles into my money life I have been able to start a real savings plan with the opportunity to see real results now and for my retirement future. We also never need to check our accounts everyday as the automation process ensures that the bills are covered and we have money to have fun with.
Melinda Smylie, Founder, Wear Kids Play
Beware Small Expenses.
“Growing up I didn’t necessarily get a lot of financial guidance. So my money habits were not great by the time that I started earning money in my first full-time job, which like most people was at McDonald’s. I developed a passion for finance and money early, which I believe was a result of seeing my parents struggle at times with money. One of the first people that I studied was Benjamin Franklin and one of his wealth tips was: ‘Beware of small expenses. A small leak will sink a great ship.’
This was something that resonated with me and is a great reminder of the concept of living within your means. It took some time for me to follow this advice correctly, but once I did, my financial circumstances changed for the better and I was able to start the journey to financial freedom and build my cash generating assets. This has resulted in a multi-million dollar property portfolio.”
Build a Freedom Generator.
“Creating a Freedom Generator. I followed this advice and the impact has changed my life.”
Pay Yourself First.
“The best financial advice I have ever received has to be to Pay Myself First. Getting an idea of the amount and putting it on Automation has really made a difference for my Freedom account. I actually have money in the bank! What a great feeling!”
“The best financial advice I received was Paying Myself First (PYF) and from the day that I received that advice I had that piece of information running in my head like a record on repeat that drove me forwards to put into place the steps and structures that I needed to to make that happen. The impact that that one simple and exciting principle has made in my life and on my finances has been like standing above my past financial world and waved a magic wand over the picture dissolving what was present and transforming it. Instead of checking and rechecking my accounts multiple time a day and feeling crappy, I checked them just because it was exciting to watch that money steadily but surely grow week by week. I still love watching it and kind of have to pinch myself and remind myself that I have finally made this possible in my life after so many years of hardship stress and struggle over money seemingly there for everyone else but never being there for me.”
Hide your savings from you.
“I think the best advice I ever received was to put my savings in an account at a different bank so that it was out of sight, out of mind. I did this and the temptation to dip into my savings evaporated. I honestly forgot about it and managed to save up a significant amount that was then there for me when I needed it most. I got sick and had to stop working, this savings paid my medical bills until my long-term disability insurance kicked in.”
Wendy Priester, Owner, D&L Financial Coaching
Investing is a marathon, not a sprint.
“Invest for the long term. Too many people are all too worried about the short term and chasing a high return however it doesn’t quite work like this. If it’s good enough for someone like Warren Buffett to look at returns over a longer period of time, then it should be good enough for all of us. And we should also maybe do what he does—when others are greedy he is fearful and when others are fearful he becomes more aggressive. I would like to think that I am following this advice and while I have made some bad decisions, the decisions made with a longer term view have done well.”
What’s some of the best advice you’ve ever received? Let us know in the comments below!
Some answers have been edited for length and clarity.