It’s Mother’s Day again. It’s time to express your profuse gratitude towards one of the pillars of your life: your mother. The women of India are naturally talented at money management. They have a nose for what’s truly important, and they let this acute sense of purpose guide their money decisions. They are also masters of thrifty innovation, making great use of frugal resources. Mothers have a way of sharing their wisdom with their children. We would have picked many lessons from them, sometimes just by observing them, other times while having our ears pulled!
Here’s a look at three money lessons from moms that we can implement in our financial lives:
Delay gratification, save up.
Our mothers are quick to remind us when we’re having too much fun. There’s great merit in being patient and delayed gratification, and we’re sure your mother would have told you this at some point in your life. It’s important to enjoy yourself, but it’s also important to think of the future. So think about your future money needs and start saving up. At the start of every month, set aside 10-20% of your income compulsorily towards savings and investments. When it comes to spending, know how to differentiate between your wants and needs. Needs are wants backed by purchasing power. The fewer wants you have, the more money you are likely to save. Think of how your mother would want your future self to be: comfortable, prosperous, and self-sufficient.
Be fussy with your purchase. You ought to.
Think of all the times your mother haggled hard to get the best purchases for your family. Often, it must have seemed like a complete waste of time to you as your mother dragged you through the marketplace, fussily going over a hundred different options before finally making up her mind. While you were going numb with boredom, your mother was on a mission to extract the most value out of her money. The lesson? In your investment decisions, you need to be fussy and demand more, just as your mother would have. The financial marketplace is full of options, many of which may seem attractive on the surface but may not be the right ones for you.
Your needs and wants are unique. Therefore your financial products should be able to cater to those unique needs and wants. Don’t settle for a product simply since your friends may be recommending it or a sales agent is pushing on you. Financial products such as insurance plans are often long-term commitments, and you should give a lot of thought before finalizing it. Always compare your options, control and calibrate your product search, and only then finalize your best option.
Protect your loved ones, always.
With life and health insurance, you have the power to protect your dependents from the financial impacts of unforeseen tragedies. This is what your mother would have wanted: for you and your family to be safe and healthy. If you have dependent family members, you should protect their long-term financial requirements by buying a term insurance plan. They are cheap and provide great value – a deal your mother would certainly appreciate.
In case you were to meet an untimely end, your term plan would be able to cover the long-term money needs of your family – something that most other life insurance products often don’t. Similarly, always have health insurance for all members of your family. This will keep the family’s wealth safe from the harsh effects of any hospitalisation or prolonged treatment.