Money Talks

Young people should never try to have what their parents have right now. So many people try to have all the toys, houses, and cars that their parents have without realizing that their parents built up to these things over time. In trying to acquire too much stuff, they end up getting in way over their heads in debt, sometimes going into bankruptcy.
Breezy Johnson
Bountiful, Utah

One of my earliest jobs was working for a very wealthy producer who had made a fortune in the stock market. One day I asked him, “If you were a young man starting out, what would you invest in?” Without even turning around, he replied in a monotone, “Invest in health care. People are always going to be sick.” As an idealist, I found his advice jarring. But as I near retirement, I find my pharmaceutical stocks have never let me down.
Fred Rubin
Valley Village, California

When my husband and I were first married, young and poor as church mice, we decided to buy a car to replace the perfectly good one I had been driving. Although we could afford the higher monthly payment, a grandfatherly salesman refused to sell us a car. He told my husband and me to go home and put the money in savings. At first we were insulted, but we soon realized he was only looking out for us. Not too many car salesmen would do that, and I will always be grateful to him for putting our best interests ahead of his.
Debbie Kubena
Austin, Texas

My dad gave me this advice: When thinking about buying something, consider how long it took to earn that amount of money. Then decide if the purchase is worth the effort. At the time, I was earning $2 an hour babysitting. If I wanted to buy something that was $10, he would say, “Do you think it’s worth working five hours to get this item?” To this day (I’m now 33), I still use this philosophy before making a purchase.
Michelle Taupier
Shrewsbury, Massachusetts

At 16, while working for my uncle at a restaurant, I found a penny on the floor. I made a comment to the effect of “It’s just a penny.” To which he replied, “It takes one penny to make two.” I’ve never looked at a penny the same way since then, knowing that saving even a little bit adds up to a lot.
Lorraine Holman
Pryor, Oklahoma

“You’re not rich enough to buy cheap things.” These were the words of my father, and it’s true: Every time I’ve overlooked quality and focused only on cost, it has ended up costing me more in repairs or replacements in the long run.
Rebecca Lopatine
Phoenixville, Pennsylvania

My mother-in-law once told me, “It’s not how much money you make. It’s how much you spend.” She and her husband came to this country with nothing. He repaired umbrellas, and she worked as a cashier. They were careful about spending and managed to put their son through college and dental school. They taught me the value of not spending.
Marsha Weitzman
Plainview, New York

Please Enjoy

The most surprising financial advice I’ve ever received was to “cut the latte.” This advice, almost dogma in the world of personal finance, continues to baffle me. If roughly $5 a day adds up to more than $1,800 a year in lattes, so be it. These little things bring us daily pleasure. Most people cannot afford (or don’t want) to drop $1,800 on any one thing, but most are able to spend $5 a day for a cup of joy (or whatever your “latte” may be) to break up their day-to-day routine.
M. Nelson
Boston, Massachusetts

Born in 1933 and 1946, respectively, my husband and I grew up with a Depression-era mind-set concerning finances: You make it, you spend what you need to, and you save the rest. Our conservative spending made us feel secure. In 1995, a good friend, who happened to be a liberal spender and a risk taker, invited us to “go for it” and invest in a 750-acre ranch he was buying in Colorado, with plans to subdivide. Totally out of character for us, we invested $60,000. As our friend predicted, we doubled our money in short order. And the best part is that we now have a lovely home on one of the 35-acre parcels, with a mountain view to die for.
a mountain view to die for. Karen Neal
Grand Marais, Minnesota

As much as you’re told to save for your future, you should not deny yourself. Take that cruise. Get a manicure. Have your hair highlighted. Saying you can’t afford it will not decrease your stress level. Doing things you enjoy keeps you vibrant and healthy. This is not rocket science — it’s just good common sense.
Penny Bonanno
North Las Vegas, Nevada

My grandmother was a frugal woman, but as she neared the end of her life, she began surprising me with large monetary gifts. I would protest, swearing that although my husband and I found her gesture quite gracious, we did not have a desperate need for it. She always smiled, insisted, and told me to take the elaborate vacation we were dreaming of or enjoy a big night out on the town. The one stipulation she set was that she wanted to see lots of pictures of whatever we spent the money on. Grandma died last June, and I’ve finally realized what she had been doing. She was enjoying the money she had worked her whole life to save. The most surprising — and best — advice: In the hubbub of this busy life, don’t forget to enjoy yourself, your loved ones, and your life.
Melania Hardy
Washington, D.C.

Your Turn

Share your own story: What is the most surprising financial advice you've received?