“Why is it difficult to save?” This was the question raised by moms who recently attended the “Money Strategies for Smart Moms” at Cafe 1771 in Ortigas. SmartParenting.com.ph initiated this informative and inspiring talk in partnership with Pro Friends. As we all know, Smart Parenting is a credible parenting resource backed by experts and a community of involved parents. Pro Friends, on the other hand, is a reputable property developer in the country.
During the event, a few of the country’s financial experts shared proven money-saving strategies, wise ways to raise money-smart kids, and clever home financing tips. This momi went home fully confident and excited to share her lessons learned to her husband. My better half loves topics about money strategies as well. We both yearn to be financially prepared for the future. We see to it, too, to teach our kids how to properly handle their allowances and savings.
The Money Strategies for Smart Moms talk lasted for about two hours. I particularly appreciated the wisdom shared by Ms. Rose Fres Fausto, an investment banker turned full-time homemaker. I was lucky to answer one of her questions and was awarded a book she wrote “The Retelling of The Richest Man in Babylon.” The book was originally written by American author George Samuel Clason in 1926.
Let me echo the learnings from the “The Retelling of the Richest Man in Babylon.” The characters in the parables learned simple lessons in financial wisdom, and Ms. Fausto retold the three laws of money:
First of the 3 Laws of Money
Pay yourself first.
This requires smart moms to make saving the most important bill that they pay. It should be prioritized and be paid above all other bills. The fund may either be put in a savings account or let it grow to generate passive income. This approach increases the possibility to actually save a substantial amount. Why? Because if we save first, and then pay bills and buy wants later, we will then be forced to make ends meet. But if we start paying those bills and buying those wants, there might be no significant amount left to save.
Second of the 3 Laws of Money
Get only into a business you understand.
Saving money may not be enough. Smart moms should teach their kids how to invest. Before investing, though, our children need to understand the nature as well as the ins and outs of the business they are considering. They may consider those that create a passive income. Either they deposit or invest money on time deposit, money market, bonds, or stock market. But before that though, they need to seek advice from competent people.
Third of the 3 Laws of Money
Make your gold work for you.
This third law of money is very simple yet hard to do. But with discipline and goal, we could eventually make it possible. This law says that we should have the discipline to build our wealth first and make the money work for us through investment or business. We need to have multiple sources of income. And once we achieve this and everything is stable, we could then buy any wants and desires. Simply put, this is what my mom would often tell me — delayed gratification.