Financial advice for my 19-year-old daughter

Today is my eldest daughter’s birthday. Happy Birthday Lakeisha.

As I reflected on the last 19 years and her future it made me reflect on the financial advice I would give her.

Some of my blogs are very public. Some are very personal. This is one of the personal posts. I actually only want Lakeisha to read this….but happy for others who are interested to read it.

When she was 16, and I was 44, I posted a blog titled 44 Pieces of Advice on Life I gave Lakeisha on her 16th Birthday: I actually hand wrote those in a letter for her. Click here to read that blog

And today (20th Feb 2017) she turns 19. Made me think about the financial advice I would give her now that she is earning some money, plus studying, which will help her increase her earning capacity.

So here is the Financial Advice I would give to Lakeisha. Maybe some of this advice will help you.

  • Always honor God with your finance through tithing.
  • Never fall for an email scam. Any Nigerian Prince who emails you saying he wants to share his dead uncle’s wealth with you is really not anything so delete the email and move on.
  • Read the book Richest Man in Babylon every 5 years. Make sure you are putting into practice the principles from the book.
  • Be happy to pay for independent advice. Never go to anyone who has a vested interest in the advice they give you. But at the same time, don’t be afraid to pay for good advice as long as its independent. A good accountant is a great place to start.
  • Never mix friendship and money. It never ends well and will either cost you money or a friendship. Or both. Neither is worth squandering.
  • I have made money on the Stockmarket and I have made money in Real Estate and I have made money in Business. I sadly have to report:- if you’re anything like me, stay away from the Stockmarket.
  • Never gamble. It’s the game of fools. 7 and 8 are unrelated.
  • Have a money box. Put all your coins in there. You will be amazed what you can save up for and not even miss the money.
  • Have an electronic money box. Open a bank account in a bank you don’t regularly bank with (so there is less temptation to touch the money): – every time you open your internet banking, skim your accounts, transfer everything down to the nearest $10. So if you have $46.78 in your account, transfer $6.78. You won’t miss it, but over time you will be amazed how much you can save. For the record I took our whole family to Disneyland doing this exact thing.
  • Know the difference between good debt and bad debt. Good debt is used for the purchase of assets (assets produce income). Bad debt is used for anything else.
  • Never have a credit card. Seriously never.
  • Never go into debt for a holiday. Seriously never.
  • 2 years interest free at places like Harvey Norman is great. But make sure you always make the payments and pay the debt off within the interest free period.
  • Never ever ever Nimble it. Call me before you ever get to that stage. Nimble sucks.Click here to read my blog on Nimble.
  • Always be generous and kind with your finance.
  • Educate yourself on how money works. You will earn several million dollars during your life time. Make sure you understand how money works and how wealth is created.
  • Get rich slow. Seriously there is no such thing as get rich quick. So don’t ever get involved in any scheme that promises you that you will get rich quick. It never happens. Be happy to get rich slow.
  • Stay married. Divorce means you split your wealth 50/50 at best. Being committed to your marriage is one of the best ways to build wealth.
  • Speak life over your finances. The bible teaches death and life are in the power of the tongue. So harness the power of the tongue for life and speak life, favour and blessing over your finances.
  • Use your money to create memories. Sure I could have paid off my mortgage by now and could be living mortgage free. Or I could have travelled the world with my family, showing them the Great Wall of China, Disneyland, Orchard Road in Singapore and Patong Beach in Thailand (three times). I would much much prefer those experiences to being mortgage free.
  • Work Hard and Work Smarter.
  • Always tell your dad if you are struggling financially as he will do whatever it takes to help you. As he always says ‘I fix things’.

Anyway, that’s what I think,

I normally sign off a Blog: Peter Pilt.

But this blog off I sign off Dad.

I hope that this blog will inspire Lakeisha and her hubby for decades. Possibly even after I am in Heaven.

Dad.

Reposted with permission, read the original article here.

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