Financial planners aren’t the only ones who can provide sound budgeting advice, and many well-known students of human nature have offered their two cents on fiscal rectitude.
Chances are you haven’t looked to a long-dead novelist, 18th century politician or Hollywood star for guidance on how to handle your financial affairs lately. But those who make a living from observing humankind often have valuable insights into the use and misuse of money. Here are three famous quotes that just might inspire you to rethink your own spending and saving habits.
“A penny saved is a penny earned.” (Benjamin Franklin)
This is arguably the most famous piece of money-saving advice ever given. However, given the magic of compound interest, it should perhaps be updated to, “A penny saved is, potentially, 100 pennies earned.” Direct enough of your spare pennies into a high-interest savings account or term deposit and you’ll be amazed at the speed with which your wealth multiplies.
“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” (Charles Dickens)
One of the most quoted quotes from one of the English language’s most quotable authors, this is a clarion call to carefully track both your income and outgoings to avoid a misery-inducing mismatch. If you don’t know exactly how much you’re spending every month, the chances are it’s likely more than what you’re bringing in. Which brings us neatly to the following words of wisdom”¦
“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” (Will Smith)
If there’s one sentence that nails the credit card-fuelled consumerism that brings grief to so many, this is it. Using someone else’s money ”“ lent out at high rates of interest ”“ to buy status symbols with little or no resale value is a sure path to a lifetime of financial stress. Research consistently shows that those who build multimillion-dollar fortunes are almost always frugal when it comes to personal spending and don’t blow money on things such as high-priced jewellery or clothes in order to display an image of wealth. If you want to be financially secure, live well within your means and set some money aside to invest.
So there you have, in three quotes, all you need to know to grow rather than squander your capital. The only hard part is putting the good money-saving advice into practice.