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A friend passed on her grandmother’s advice about saving: “If you make a little, save a little. If you make a lot, save a lot.”
That advice struck a chord with me and made me want to improve my savings habits.
Before, I was a risk-taking spender. Now, I have a healthy savings habit that stems from tucking away whatever amount of money I can.
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To say that I didn’t manage money well when I was first starting out in life would be an understatement. I overdrew my first checking account because I didn’t understand what an outstanding check was. I spent beyond my (very limited) means and ran up credit card debt. I tried to save money, but I always found a reason to spend down my savings.
I didn’t think I needed to save for retirementor even a rainy day. I was certain I would be a millionaire with money to spare before I was ready to retire.
I was a speculator and a gambler. I knew you had to spend money to make money, and I believed my next big break was right around the corner. Putting money into my business seemed like a better investment in my future than a silly old savings account.
Researchers group people into three categories when it comes to savings habits: regular savers, irregular savers, and those who don’t save. It’s taken me a while to move from the non-saver category to the regular saver group. Advice from an immigrant grandmother, told to me by her granddaughter, started me on the road to better savings habits.
Slow and steady yields savings rewards for a hard-working immigrant
As I drove along Upper Market Street in San Francisco with a friend from my women’s business class, she pointed out a couple of pieces of property that her grandmother had owned. Then she told me a story about her grandmother that has remained a touchstone for me ever since.
My friend’s grandmother gave her an important piece of advice: “If you make a little, save a little. If you make a lot, save a lot.” Her grandmother’s story showed the power of this philosophy.
After immigrating to San Francisco from Italy, she earned money by doing piecework sewing at her home. In time, she saved enough to buy a house. As the years passed, she leveraged her capital to buy multiple properties in San Francisco. (Side note: While San Francisco real estate commands astronomical prices now, that wasn’t always the case. Homes in the City by the Bay used to sell for prices more in line with other cities in the US. Another of my friends related that her family owned a three-unit building in the desirable Noe Valley neighborhood in the 1970s that was valued at $25,000. A real estate agent advised them not …read more
Source:: Business Insider