An early financial baseline…
Our dearest child,
On this special day, we want to tell you how proud we are of the person you have become. It is a privilege for us to celebrate your birthday with you.
As you are about to take your first steps into the world of work, we share your excitement and are filled with joy about the opportunities awaiting you. Our greatest wish for you is that you find happiness and success wherever this path leads you.
As we spoke about your future the other night, the idea of this letter came to us. We wanted to offer you five simple financial tips; the habits that have served us well in our own lives, and we know will help you to navigate your relationship with money confidently and with peace of mind.
First and foremost, our advice to you is to always do your best and to put your heart into your work. The economy has a way of rewarding those who engage with dedication and passion. Stand out from the crowd. Turn your daily tasks into artwork. Your income potential will be a function of your attitude to your job and the reputation that you build in the marketplace where you earn your living.
Secondly, we want to caution you against the lure of debt. We know that it’s easy to fall into a cycle of debt, especially during the early years. But please remember that debt should be a temporary measure. Live within your means, stay away from consumer credit, and repay your debts as soon as possible. Prosperity cannot be borrowed indefinitely.
Thirdly, start investing a decent percentage of your earnings from the beginning of your career. We encourage you to develop this habit in your ‘poor years’ already. It will pay off handsomely in the long run. You don’t need a complicated investment strategy – simply select one or two well-diversified growth funds from a reputable, regulated financial institution and commit to a monthly contribution. The decision to forfeit some short-term lifestyle gratification in favour of long-term capital creation is one that will cement comfort in the second part of your life.
Fourthly, create and stick to a budget. Determine how you will allocate your hard-earned money before it leaves your bank account. By thoughtfully categorising your earnings ahead of your purchasing decisions, you will waste less, enjoy your money more, and rest easier knowing that you are in control.
Finally, we want to remind you that true happiness is not found in excess material possessions. Don’t be unsettled when you see your peers living ‘higher’ than you in your twenties and thirties. You have chosen a different path – one that leads to long-term abundance. Stay on course, live your own life, and don’t compare yourself to others.
We bless you, dear child, and our hearts will forever travel with you. Happy birthday!
With all our love,
Mom and Dad