The Best Piece of Financial Advice My Parents Gave Me
Updated: Aug 9, 2020
I feel fortunate to have financially minded parents who taught me a lot through their financial choices and advice. They talked to me about avoiding credit card debt, saving, investing, living below my means, etc. But one piece of financial advice helped make these things even easier!
The single best piece of financial advice my parents gave me as a young adult was “LIVE ON ONE INCOME”
I have been married for 20 years (the summer after college graduation). My husband and I somewhat unintentionally used my parents’ advice right away. He decided to continue on to grad school while I started working as a staff accountant at a national CPA firm. We purchase a house, had a used car payment, and paid our day to day living expenses from my income only. Money from any odd jobs (bartending/landscaping) that he picked up during those grad school years we used to start paying off his student loans from his bachelors’ degree and saving. In those two years, we began to understand why my parents gave us this advice. We could comfortably live on my income and use any extra for paying off debt, investing, and saving.
A couple of years later when we started having children I cut down to part-time/flex hours so I could stay home with our kids during the day and we lived on his income. My income became the extra and we again used it for savings, investing, or unusual expenses.
We have continued to do this (not always perfectly) throughout our marriage and feel a huge amount of freedom with our money and our life. We love our house, we go on vacation. We have figured out what type of spending (time and money) makes our life fulfilling, we have a cushion for the unexpected and are building for the future.
Our choices have been based on this model and it has worked well for us, giving us the opportunity to enjoy our money now and feeling secure in our financial future! Thanks, Mom & Dad!!!
Curious how this might work if you are single? [check out my posts on communal living and side gigs to get the creative juices flowing]
Are you interested in Living on One Income? Not sure where to start? I would love to hear from you
Contact me now to schedule a Financial Freedom Breakthrough Session!