The Dividend Investing Blog

Tyler over at Dividend Money posted a great article about Staying Motivated with Personal Finance. Tyler says the Golden Rule of Finance is to Spend Less Than You Earn. This led me to start considering how I started learning about money and the Golden Rule of Finance.

The major influence for me was my parents. Both of my parents are college educated and they both worked for a short time before my Mother stayed home with us permanently. We were a middle class family growing up in a middle class neighborhood. The major difference was that while most of the other children in the neighborhood had nice things like Mongoose bicycles, I was stuck with my Huffy from Kmart. We bought clothes once a year, just before the start of school. Christmas had a $100 limit per child and my parents refused to buy a new car.

I remember the frustration as a kid. I didn’t understand at that time why my parents were making me so lame. I didn’t have cool toys and gadgets like my friends. My friend that lived next door had every computer and game console known to man. Needless to say, I spent a majority of my time at his house.

As I look back now, I see those times in a different light. My parents only spent money on things that we needed (most of the time). When I was a senior in high school, I received a credit card. Most people would think that is crazy. However, I was being taught a very valuable lesson. My Mother made sure I understood that the credit card was only to be used for gasoline and in emergencies. This card was to be paid off at the end of every month.

I owe my parents a debt of gratitude. I hope to pass on the Golden Rule of Finance to my children as well and show my children the value of spending less than you earn.