Posted On: October 5, 2016 by Exchange Bank of Northeast Missouri in: Agriculture Budgeting General Savings
Do you remember those late night combine rides, home-cooked suppers, and a chore list a mile long? Living on a farm certainly has its unique experiences! Throughout these childhood memories you learned a variety of lessons, many of which apply to other areas of life – including finance!
- Patience is a virtue.
You quickly found out no matter how much you want it to grow, corn will always take until the fall to reach its full height and dryness. This lesson helped you realize everything takes time, including investments. Just like the crops, it’s ideal to let them mature, and only use them once they have reached their full potential. Sure you can always cut them earlier, but it will be a poorer result, and you’ll most likely regret the decision.
- Don’t waste anything.
The saying goes, “Waste not want not.” You always made the most out of what you had when living in the country. Maybe your mom would can tomatoes from the garden, or your dad enjoyed fixing the machinery himself. Take a similar mindset when setting up your personal 401(k). If your company offers to match contributions, those are free funds! Be sure to contribute as much as you are able, and you’ll avoid wasting any additional funds your company could be offering!
- No excuses.
When asked if the chores were done, you learned quickly not to say, “No, because…” No matter what the reason was, the fact of the matter was the chores were not done. Whether it was feeding cows back in the day, or making sure you stick to your monthly budget now, being responsible for your own actions can help you stay in control of yourself, and your earnings! Take the same mindset with your personal finances and learn how to be proactive in managing your money.
- You earn your way.
Growing up your parents loved showing off FFA photos, and the latest calf you were working on for show. Keeping that cow in perfect condition for the fair may not have been easy, but earning a first place ribbon was always worth it! Years later you use the same thought process while saving for retirement. Tucking away those extra funds may not seem fun, but in the end you’ll enjoy the victory of the process when you no longer have to work for a living.
- Things will go wrong.
Murphy’s Law applies to everything. In the farming world, you just assume if it can break, it will. Instead of panicking at the first sign of a problem, you have learned to roll with the punches, and take each setback with a long breath. Once you can identify what is wrong, you are able to begin to find the solution. In your personal finances, you know that things happen, and sometimes unexpected expenses pop up. This is where an emergency fund comes in. By solving the problem before it occurs, you can ensure your finances are protected from the disaster of Murphy’s Law.
Seemingly everything can be learned on the farm in one way or another. If you’re looking to discover more farm to finance practices, be sure to stop by the bank, and see how you can become a master of money!
Exchange Bank of Northeast Missouri
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