There are not too many child geniuses that specialise in the financial sector at the moment. But even a regular five years old can give us some sage wisdom when it comes to investing our money. Read on to find out what they are.
They ask ‘Can i have some more?’
As five years old are just only starting to understand the value of money, they have no fear or reservations asking for more. This is sage advice because so many people undersell their worth in the business world. The don’t ask for raises when they should. Or if they are freelancers or craftspeople they regularly undervalue their work and sell it at a low price. If you are receiving a lower wage it will give you less spare cash to grow your investments. So make sure you ask for what you are worth.
They cry when it’s gone
One of the wisest things that kids do with money is that they inevitable have a temper tantrum and cry when it’s gone. This may seem childish. But don’t worry I’m not suggesting that you lie on the floor and kick and scream the next time your shares go down.
But having a healthy respect for money and feeling it’s loss when it is gone, is a good way to stay in control of your finances. Remember you should never invest more than you can afford to lose. Try and strike a balance between your investment capital and having comfortable life.
They about everything costs
Have you notice that kids always ask about everything? They are not held back by the limits of pride or embarrassment of not knowing something. They are quite happy to inquire about all sorts of things.
This is some great childlike wisdom we can apply to our own lives, especially about the charges we pay on financial services.
Different portfolios have varying returns, so it simport to do our homework and research them before we invest. Its also important that we make sure our money in everyday life is working for us in the best way to. So check your financial service charges here as well. For example a realtor, according to the real estate calculator, could save 95% on their fees. Just by switching financial service provider.
The hoard it in a secret place
I remember that when I was young, my little brother uses to hide his savings. Then when we had to pay for anything, I’d always pick up the tab! If you have money invested, people often assume you are rich and expect you to pay for everything. Even when they could comfortably afford it themselves. So be careful who you disclose your financial status to, incase they take advantage of you.
In addition, having a secret hoard or emergency stash of money aside from your investment portfolio, is a great idea. Things often come along that we don’t expect, and this can act as a much-needed cushion. It certainly did for my brother when he needed a new action figure!