Ever hear your grandma say, “There’s no time like the present”? She probably gave you all sorts of advice that stuck with you over the years. And while some of her sayings may have inspired you, they’re not always good suggestions for handling money! Here are a few of grandma’s old adages that could break your bank.
1. We’ll cross that bridge when we come to it.
This saying reminds us to deal with the here and now instead of worrying about what might happen later. That’s bad advice when it comes to your savings and retirement. Being smart with your money means thinking about the long-term, the what-ifs and the when-I-retire scenarios. Planning and budgeting are the best tools for living now and looking to the future.
2. Ignorance is bliss.
Yikes! This is no way to think about your money. You don’t want to be blindsided by how much money you have (or don’t) when the roof leaks or the dryer dies. Real bliss is paying for those repairs out of savings—not on credit—because you kept an emergency fund. You’ll love that feeling!
3. Bigger is better.
Yes, your home is important, but it doesn’t have to be bigger than the White House. Some people buy too much house and find themselves swimming in debt and barely treading water. Rule of thumb: Your house payment should be no more than 25% of your monthly take-home pay. And pay off the mortgage as soon as you can. You’ll sleep better in a modest home that’s paid off than you will in a mortgaged-to-the-hilt castle.
4. There’s no time like the present.
Yes, it’s bad to procrastinate, but sometimes the present moment is the worst time to act. When you’re $40,000 in debt, it’s not the right time to buy a house. You can seize the day, but that doesn’t mean you need to charge your entire vacation on a credit card. Instead, think of this proverb: “Patience is a virtue.”
You’ve heard one saying that is definitely true: Money doesn’t grow on trees. It can grow in one place, though: your bank account. Put this saying into action by creating a plan and sticking to it!