Money, we have to have it, it’s a physical and mental necessity to our everyday lives. Day 5 of 10 Career Challenge actually worth doing we’ll cover some basics that I learned from my stepfather, who became a successful self-made millionaire. His work ethic and focus, I truly admired in him, and his personal finance advice he gave me throughout my adult life, has served to be great lessons and guidance.
Gambling and taking responsible financial risks do pay off with time and patience. Key word being, responsible.
The Best Personal Finance Advice I ever Received
If you want to someday become financially independent, you must live within your means. You also must save money for the big-ticket items you want to buy. I loved my credit cards, and honestly, abused them. If you can, save and pay cash for everything.
“Every time you borrow money, you’re robbing your future self.” – Nathan W. Morris
As a young adult, I didn’t read the fine print about 18%-23% interest and late fees attached to a credit card contract.
Until one day, I was in credit card hell. I needed help, and going to my stepdad was my only option. He not only paid off my credit cards, but he also showed me how I was going to pay him back.
First, on an index card he wrote in BIG LETTERS which covered the entire index card, the amount I owed, then, asked me to put it on my dresser mirror to remind me of this debt every day until it was paid off.
Second, he wrote up a contract stating what I owed and the 1% interest he attached, I would also pay. I read the contract and signed it, with much respect and relief.
Third, each time I made a payment, he gave me a receipt.
Fourth, he always thanked me when I made a payment, and encouraged me every time by showing me how the debt was slowly coming down.
It took me 6-months to pay the $750 I owed with interest. And let me tell you, I never missed a payment.
Here is where the lesson becomes amazing.
One my last payment, I handed him the money, and he got out my debt leger that he kept.
We went over the debt leger, and I have to say I was very proud of myself, NO MORE DEBT!! It was a huge relief!
My Debt Payoff Reward
My stepfather was an amazing person, a larger-than-life personality. He knew the importance of being debt free and using credit cards only if needed. Like I said, he was a self- made millionaire.
After going over the debt leger and sharing how proud of me he was for paying him back and on time. He folded up the debt leger, got out an enveloped from his desk drawer, and handed me the envelope.
There was the $750. I was so shocked, I asked why? His reply was, “I believe, you have learned your lesson and I want you to see the reward of your financial payback”.
“The art is not in making money, but in keeping it.” – Proverb
A Lesson Learned
The financial method my stepfather used, was a simple one. He taught me to read the fine print of any credit card first and showed me how important paying off my debts were. I believe Dave Ramey would be proud!
My stepfather also showed me who you just can’t buy something and not pay it off. I guess you can, but I wouldn’t want that feeling lingering over me every day.
Today, I keep very low balances on my credit cards if any and pay them off as soon as possible. At 28%-30% interest on most cards these days, I don’t even charge if it’s not necessary. As I self-reflect, back to those early days of being a very young adult. I feel so fortunate to have had my stepfather’s financial wisdom and guidance.
He gave me, the best personal finance advice I ever received.
Final Thoughts and Words of Encouragement
Check in with your personal financial health often. As Dave Ramsey says, develop habits of the rich, not the poor. Enjoy life within your means, besides you want to be able to enjoy your later years too! Be generous in charity with your money, and the universe will always make a way to reward you. Be patient with your money and give it a job to do. Lastly, at the end of the day, it’s not how much money you have or make, it’s how much money you keep.
“Never spend your money before you have earned it.” – Thomas Jefferson
We’ll chat soon,
