Sometimes fathers know best.
That’s why FOX Business spoke with several money experts to find out what financial advice their dads have given them that they still use today in honor of Father’s Day.
Here are nine personal finance tips from real-life dads that have a proven track record of success, according to experts in the field.
The Gold Rule
“‘He who has the gold, rules.’ Meaning, if you borrow money from someone – a person or an entity – they get to make up the rules. If you have your own money, you don’t need to answer to anyone else. It has been an excellent guide for me,” shared Binney Wietlisbach, the president of Haverford Trust Company.
Be Profitable
“You never go broke taking a profit,” shared Andrew M. Aran, a managing partner at Regency Wealth Management.
Negotiation is Key
“The best lesson I learned from my father about money was to ALWAYS negotiate, no matter — he is a haggling pro. This meant, always try to get a better price on a car or purchase where haggling is an option or asking for more money and benefits when interviewing for a job. Not only did this give me the confidence to speak up for myself, but it also helps me to save money and earn more money,” shared Andrea Woroch, a consumer and money-saving expert.
Money Doesn’t Grow on Trees
“You can only spend that dollar once so be smart when you decide it’s time. This piece of advice has stuck with me for more than 30 years and has always helped me to make smart investments and not waste money on foolish expenses,” shared Taylor Kovar, the CEO of Kovar Capital.
Don’t Skimp on Retirement
“Pay yourself first! It’s easy to spend the money you get from hard work on things and experiences, however, don’t forget to pay yourself first by setting aside money for retirement, plans and goals before making funds available for fun or other discretionary expenses. We all learn to live with our net proceeds and income, and it’s important not to forget the long-term benefits of compounded growth,” shed Kim Gaxiola, the founder and certified planner at TechGirl Financial.
Generate Your Wealth
“When we were on summer road trips for our family vacation, we’d arrive at some town that we’ve never been and my dad would ask us what business do we want to own in town? Naturally, as kids, we’d tell him a toy store or something that sounded fun in our minds. He then drilled into our heads that we were much better off owning consistent businesses that were typically owned by the wealthiest people in these towns. The businesses that he would make us think about were the local Coca-Cola bottler, the local beer distributor and the local funeral home. In small-town America, those were the businesses that represented a consistent way of creating wealth,” shared Cole Smead, the managing director at Smead Capital Management.
Live Within Your Means
“Coming from the former Soviet Union, where buying things on credit didn’t exist, my father was always adamant about me not purchasing something I don’t have enough cash for. I still use credit cards, but only charge items that I know I can pay down in full when the next billing cycle comes around. Teaching me to live within my financial means has allowed me to mostly stay debt-free when it comes to my personal finances,” shared Marina Vaamonde, the founder of PropertyCashin.com.
Have an Emergency Fund
“Always have an emergency fund – start with $1,000, then three months of expenses, then six months’ worth. Don’t touch it. Keep it in an account you won’t be tempted to pull from… Out of sight out of mind,” shared Kelly Joyner, a senior product manager at Quicken.
Prioritize Investing
“The best advice my father ever gave me was not to leave money lying around. Always keep your savings invested. He said the cost of living goes up every year and you need to do something to keep up with that. I think too many people assume that they can just open a high-interest savings account and have that be enough, but it takes more than that to really get ahead in life. A penny saved is a penny earned, but a penny invested earns more pennies over, and over, and over again,” shared Mark Spitz, the CEO at CPI Financial.
