Family wisdom lessons are passed down through generations, either through the traditional stories told by our ancestors about their adventures, full of epic narrations, in a world where there was no means of communication, or through behaviors and attitudes that, once imitated, become perpetuate itself, creating deep roots in the mentality and heart of the descendants.
Despite the difficulties of many of our grandparents in obtaining formal education, almost everyone here knows, has or had grandparents who bequeathed precious lessons in personal finance, albeit implicitly, through examples and actions. See if you can identify in your grandparents some of the lessons that my grandparents bequeathed about dealing with money – lessons that are precious and more up to date than ever.
Your work is your greatest source of wealth
The best recipe for achieving financial stability involves hard work, persistence and dedication in the area of your specialty. Value what you have most precious: your set of skills and knowledge in a certain area of life. Try to improve it, because it is from it that you will get not only the money to support your family, but also the money to supply your investment plan .
If you don’t like what you do, there are two possible alternatives: look for another job or learn to like what you do. Don’t neglect your best and explore your skills to the limit – and be amazed at the positive results of your efforts.
Investment in education always generates the best returns
Due to life circumstances, you have not had the opportunity to formally educate yourself, dedicating yourself to work to support your family, it is your obligation to invest in the education of your children. Each additional year of studies will generate a substantial increase in earnings for them.
The doors of the labor market will always be open to competent and qualified professionals. Create a family atmosphere that encourages creativity and the love of studies. This is certainly a type of investment that is immune to economic crises, as it is the investment that gets internalized in your mind. And don’t forget, encourage your children to also read and value citizenship and culture.
Invest in real assets that generate cash flow
Your grandparents probably invested in purchases of land, apartments, commercial rooms or home residences to rent or sell and thus have extra cash flow. They did not invest in stocks simply because there was no easy access to this type of market. If there were, they would certainly take the opportunity. Investments backed by real assets are opportunities to add value to the family’s financial assets.
Make the most of everything you have at hand
In other words, practice frugality. Do not waste the resources that are made available to you. When shopping, value every penny you have to get out of your hands. When you consume, think of the thousand and one ways to enjoy each food, each perishable product. Take good care of your durable goods so that they last as long as possible. I suggest reading the articles “The many truths between consumerism and frugality” and “What is frugality”.
There is a time to plant and a time to harvest
Be patient. If your grandparents were farmers, like mine were, they incorporated patience to harvest the best fruits. Metaphorically, if you want to reap good results in your financial life, choose good seeds to plant: hard work, discipline, dedication, self-effort and planning. Don’t be in a hurry to accumulate equity. It is often the result of years and years of dedication. But the effort will always be worth it if you respect the law of sowing.