DISCLAIMER: I am not a financial advisor and this should not be taken to be financial advice. You should consult a financial professional for advice. I am a financial amateur. These are my thoughts and opinions on money that I have recorded here for my children, with the hope that my thoughts might help them. They are responsible for the results of the advice they choose to follow. Always worth keeping in mind: Past performance is no guarantee of future results. Your mileage may vary. The map is not the territory. Keep your eyes open. Smell it before you take a bite.
To my children:
Money is sort of like a boat, and you need to stay afloat. You don’t want to sink, you don’t want to drown. You don’t want your boat to be taking on water. So spend less than you earn. If you want to spend more, then earn more. If you can’t figure out a way to earn more, then spend less. There aren’t really any other options.
Spending less than you earn is saving money. You should save money because one day money might save you. You can save it for a rainy day when you need to buy a raincoat or fix a leaking roof or for when you lose your job and need a cushion. You can save money for a sunny day when you want to buy a popsicle at the beach or fly to Hawaii. But saving money is part of what money is for. It’s for spending, sure, to buy bananas, but it’s also for saving, so that you can buy bananas whenever you want, on your terms.
Bottom Line: Spend less than you earn. You might need money later for something more important than what you could buy now.