7 financial advices that changed my life

Valuable financial advice can be obtained from a variety of sources, including friends, financial advisors, parents, pastors, conferences, books, and magazines. Throughout my life, I have received a plethora of financial advice, and in this article, I aim to summarize the seven best pieces of advice that have contributed to my family's financial success.

The first piece of advice that I received from a financial advisor was that most people who struggle to live within their income tend to overspend in one of three ways: on their house, car, or entertainment. I have taken this advice to heart and have always tried to be modest in my spending on these items. I have observed that overspending in these areas often leads to debt and financial struggles.

The second piece of advice that I found helpful came from a boss who suggested that when first getting married, it is wise to live on just one income. This allows the second spouse to save all their income, which can be used for a down payment on a house or other investments. While this may not be feasible for everyone, it is an option that more people should consider especially when you decide to expand the family and your spouse decides to stop working and become a stay-at-home parent. Since you already live in one income, this would be more convenient.

The third piece of advice is to always buy cars with cash. By saving money in a separate account and making monthly payments to ourselves – instead of a company and we can continually upgrade their car without incurring debt. You can buy a new car with those payments adding the selling price of the car and find a better car to use while you continue to do the same and have a better car in 3-5 years.

The fourth piece of advice, which I learned from an article in The Wall Street Journal, is to set out a spending plan rather than a budget. By listing monthly fixed costs and comparing them to monthly income, one can determine their monthly discretionary income and make informed decisions about where to spend it.

The fifth piece of advice that I received from a realtor was to make one extra monthly payment on my mortgage each year. This can significantly reduce the time it takes to pay off a mortgage.

The sixth piece of advice came from a pastor friend who advised me to never take a job solely for the money. While it is important to factor in pay, it is equally important to find work that is fulfilling and meaningful.

The seventh and most impactful piece of advice that I received from my parents is that one is that you’re never too poor to give. Despite their own financial struggles, my parents always gave a percentage of their income to those in need, trusting that they would be taken care of in return. This practice has been a guiding principle in my own life and has brought immeasurable joy and fulfillment.

While each of these pieces of advice may require some adjustments and sacrifices, I believe that they are all worth implementing. I encourage everyone to consider incorporating these practices into their own financial planning.