- “Time to save for a rainy day”
- “A fool and his money are soon parted”
- “Don’t put all your eggs in one basket”
- “Never look a gift horse in the mouth”
“There are a few basic principles by which you need to abide for success: spend within your means, use cash instead of credit, set a budget and stick to it and make sure to include savings, no matter how small, as part of your monthly activities,” says Jeff Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“While money proverbs may seem a little outdated in some regards, a lot of this age-old wisdom holds true today. Nevertheless some money proverbs provide excellent advice on how to manage your money and your debts successfully,” says Schwartz.
Money doesn’t grow on trees
How many parents have used this one in trying to explain money to their children? This little nugget of money wisdom very accurately explains the necessity of spending within your means. It identifies the fact that money supply is limited and doesn’t grow back on it’s own.
This is the whole principle behind living a cash-based lifestyle. You’ve got a specific amount of money as supplied by your income. You’ve got a set number of expenses as set out by your budget to meet those expenses, including spending on discretionary items and savings. When it’s gone it’s gone.
A bird in hand is worth two in the bush
One of the most important attributes associated with good money management is patience. With the vast digitalization of our society, the whole concept of buy-now, pay later has ramped up to new levels.
However, if you save now and buy later, as one meaning of this proverb suggests, you’ll be much further ahead. You’ve got the item you want without debt to pay.
Another way of looking at it is how saving money now means more money for you later. Think about it. Putting money in a savings account (or other cash equivalent investment) will generate income, meaning money saved today will actually be worth more tomorrow. Another proverb that supports that notion is “A penny saved is a penny earned.”
It’s better to give than to receive
Maybe your attitude towards credit and spending is fuelled by a need for material things. If you go back to basics and appreciate the more simple things in life, it’s easier to live a frugal lifestyle- which means it’s easier to live within your means. There is great value when you shift your focus away from acquiring material goods.
There’s no such thing as a free lunch
Credit does not equal free money beyond your income, which is a mistake that people make, often landing them in debt trouble.
Every penny you take out on credit has to be paid back. And if you don’t erase that debt month-to-month, you are looking at accumulating interest, which is making that “free” money even more expensive.
If debt troubles have you looking for a fresh approach on how to get your finances under control and back on track, we can help. Contact one of our trained credit counsellors at 1-888-294-3130 or visit our free online debt analysis.