10 Financial Proverbs that are Still True Today
There are quite a few old proverbs and adages that we’ve all been saying and hearing for years (if not centuries). After a while we stop really hearing them, though, and start to take their meaning for granted. But most wisdom is timeless – and smart money advice is worth hearing in any century. So here are a few great financial proverbs that are just as true today as when they were first uttered:
"Never spend money before you have it."
– Unknown
Spending money you don’t have is the first step on the slippery slope of debt. Of course, it’s pretty impossible to buy everything you need with cash these days, so some debt (mortgage, car loan, student loans, etc.) is a given.
But sometimes we buy things we want before we can afford them, creating credit card debt and trapping us in an endless cycle of big interest charges and minimum payments. So before you buy something on credit, ask yourself, "Do I absolutely need this right now?"
"Spending is quick; earning is slow."
– Russian
Spending is quick, alright. Thanks to modern technology, the “convenience” of buying has never been greater – we can spend hundreds of dollars in the swipe of a card, the click of a mouse and the tap of a smartphone.
Unfortunately, earning money is in many ways harder than ever. Inflation means bigger bills even when our paychecks aren't any bigger. One trick: before you buy something, consider the cost not as money, but as time. How long do you have to work to earn enough money to make that one impulse purchase? Is it worth the labor you put into earning it?
"A fool and his money are soon parted."
– Dr. John Bridges
Don’t take this one the wrong way. Smart people and money are parted all the time, too. It just means that all money decisions are important and you can’t take it for granted that your money will always be there. The more you do to educate yourself about finances, the better equipped you’ll be to make positive choices with your money.
With any money decision, though, it's always best to do your research and ensure that you're making a sound decision.
"Creditors have better memories than debtors."
– Ben Franklin
As much as we’d like to be able to forget our bad money decisions and let our old debts drift away into obscurity, that just isn’t happening.
And just because you can’t remember who you owe and how much, trust me – they know. So keep good records and don’t lose track of your debts. When in doubt, pull a copy of your credit report.
"Rather go to bed supperless than rise in debt."
– Ben Franklin
Don’t take Franklin too literally here. If using credit is your only option, that’s far better than starving.
The real point here is that some wants may feel like needs, but you should never forget that borrowed money is still borrowed money and in the (figurative) morning it will be due.
If you're working toward a financial goal, sometimes it helps to be strict with yourself and limit the option of borrowing money altogether.
"If you buy what you don’t need, you steal from yourself."
– Swedish
This is a great saying that you don’t hear enough, because it’s absolutely true. When you buy something you don’t need today, it’s the future you that will suffer. Or, to put it another way, spending money on today’s wants means you might not be able to afford tomorrow’s needs.
Even if you feel financially secure right now, that might not last forever, so you should still be cautious with your money. Money, like everything, is finite. What you spend today won't be available tomorrow.
"Save for a rainy day."
– Aesop
Never take the value of savings for granted, because (to use another popular old adage) when it rains, it pours.
We’re hardly ever as prepared as we need to be for major financial setbacks, so it’s important to remember that disaster can strike at any time. The more you save today, the faster your recovery will be.
"A penny saved is a penny earned."
– George Herbert (original)
This saying used to make no sense to me. In my mind, a penny saved is a penny saved and a penny earned is a penny earned. They’re two totally different things!
However, it turns out I was misinterpreting the proverb. It really means that the money you save is just as valuable as the money you earn – so don’t discount the importance of saving. Saving and earning are two sides of the same metaphorical coin. You need both to achieve most financial goals.
"Interest on debt grows without rain."
– Yiddish
Crops, trees, flowers, grass – all organic plant life needs the right conditions to grow and thrive. Debt, on the other hand, can grow in a vacuum. So just remember that it doesn’t matter what happens to the house you buy, or the degree you finance, or the new business you invest in – the interest on your debt will accumulate no matter what.
"Lend your money and lose your friend."
– William Caxton
Borrow money from a bank or credit union. Seriously. You’re very unlikely to have a super tense, passive aggressive Thanksgiving meal with the bank.
In all seriousness, it's possible to lend to or borrow money from friends or family, but it’s difficult and, more often than not, it puts an unnecessary strain on your most important relationships. So stick with banks, credit unions, and reliable online lenders.
Need personalized financial advice? MMI offers free financial counseling, 24/7, online and over the phone. Let our experts show you how to over financial challenges and make the most of your money.
