by The First Lesson My Grandfather Ever Taught Me
The first words my grandfather ever spoke to me about personal finance to save money completely changed the way I think about money. As with most people, the only thing I had heard was: “Save money for the future. But my grandfather smiled and he said something I didn’t expect. He was looking at me and said quietly, “Do not just save money, make money grow. I didn’t get the first time the idea what he meant. Years later I understood that it was the best lesson in wealth building, budgeting and financial freedom that I had ever received.
The Old Man Who Only Dreamed
There used to be an old man in a small village, my grandfather told me. Because he didn’t work, everyone thought that he was lazy. He would sit under a big tree in the morning, look at the sky and watch people passing and dream of getting rich. He would frequently say, “When I get old I’ll open a shop. When I get old I’ll buy cows. When I get old I’ll be wealthy. Sadly, that “one day” was never to come, as he didn’t take any action.
Initially, the villagers joked about him and his wild imagination. Over time, they ceased to laugh and instead felt bad for him. His wife was the one who had to do everything. She cooked and cleaned, did the chores and somehow kept the family together with little. One night, she softly explained, “Dreams are beautiful, but dreams can’t help an empty belly. We need work, we need money. The old man just looked at him and said, “Some day, I will find a way.
The Night That Changed His Life
It was getting increasingly difficult. Years became months, months became days. There was a lack of food and there was hardly any money. One night the old man’s young grandson came over without shoes, thin, and hungry. He looked at the grandfather with innocent and quiet eyes and asked him, “Grandpa, do we have any bread?”
The grandmother slowly opened the cupboard in the kitchen. It was totally empty. No bread was there, no rice and nothing had been left.
The old man felt something that he had never felt before. With that, tears rolled down his face because he knew that dreams will never make him financially secure if he doesn’t put them into action. Wishes won’t fill the tummy. He was too busy that night, and he didn’t sleep. It wasn’t that he was hungry, it was because of the weight of years that had passed that he did not work.
Taking the First Step Toward Financial Stability
The following day, the old man did something that he hadn’t done before the next morning. So he went out to find a job. He found a job as a field labour, working long hours under the hot sun. His hands grew rough, his back was sore and his feet were burning from walking across the dry land. He came home every night tired, but with a little bit of money.
He would ask his grandson: “What did you do today grandpa?” The old man would smile, and give him some money. It’s not much,” he would say, “but it’s something.
He had finally got paid but another hard reality emerged. Money that he earned was gone as soon as it appeared. All their food, medicines, clothes and domestic expenses were used up. The hard work he did did little to alleviate the family’s poverty. This is a problem that a lot of people experience in the present times. Money management and a budget are essential to making income a source of wealth.
The Glass Jar of Savings
The old man went to the village market one afternoon, and overheard somebody saying, “The secret of success is saving money; when you save you stay safe.
The words touched him, they remained in his mind.
On that night he discovered an old glass container and put it under his bed. Each week he would drop in several pieces of coin. When each coin dropped into the jar, he had hope. Finally his grandson discovered the jar and asked, “Grandpa, what is in the jar?
The old man smiled with pride and said, “This is our future.
It wasn’t a breeze to save money. He wore old shoes, never bought new clothes, and the family sometimes had to eat less so that he could save more. One evening his wife asked him. A lot of money saved is a lot more money wasted if we need to eat now.
He just replied, “One day you will know.
Eventually, after a few months, the jar was filled. For the first time, the old man was in a position to eat and breathe easy financially.
The Problem With Only Saving Money
The old man trusted his money and went to the market to purchase three sacks of corn. He took all the coins out of the jar and placed them on the shopkeeper’s counter.
The shopkeeper counted the money and shook his head.
He apologized, “I am sorry. The price is changed, this will only purchase 1.5 sacks.
The elderly man looked on in amazement.
His money was still there, but its value had been reduced. Everything he had saved, his hard-earned value had slipped away in the shadow of inflation.
He discovered a lesson about personal finance he needed to learn that day. Although it is essential to save money, savings may actually depreciate over time. Inflation can work against you if you aren’t investing or building your wealth.
The Small Investment That Changed Everything
One evening, the old man sat outside watching the neighbours as they came home. One had newly laid eggs. Another carried milk. Presumably they were not concerned about the future.
Then he had a bright idea.
So what if we purchase chickens?
This time he didn’t wait for someday.
He acted immediately.
He purchased a couple of skinny chickens with the funds he saved. His grandson was excited and referred to them as their own “egg factory.
Initially they were taking one egg per day. Then two. Some had eaten and some they sold. They used the money they made to purchase another chicken. Then another.
The chickens then began to grow in number.
Gradually the earnings increased.
Old Man kept track of all of the eggs he sold in a small book. All the coins were accounted for. All costs were recorded. He had unwittingly developed a straightforward budgeting system – and a small business. Neighbours already started to purchase his eggs directly, and for the first time, his income was not going to waste.
He had found out how to make money to serve his needs.
The Greatest Money Lesson
The old man one day saw in his hand a new egg and looked at his grandson.
‘In this egg,’ he said, ‘there is more value than in a pot of money.
The boy appeared to be in a daze.
The old man smiled.
Money can go away, money can go down in value, but with money you can create more money.
His grandson hugged him and asked him with a smile, “So, you’re not lazy anymore?”
The old man coughed a few times and laughed quietly.
No, my kid, ‘cause I learned my lesson and it changed my life.
Don’t simply save for savings’ sake. Make money grow.
Final Thoughts
This is a simple story today with one of the most powerful financial literacy lessons. Saving money is a key behavior, but saving money doesn’t necessarily make you money independent. The key to wealth is to learn how to invest wisely, generate income producing assets, manage your budget, and let your money work for you.
From a few dollars, a small business, a side hustle, dividend investments or any other way of making money, keep in mind that even the best investors began with one single step.
Avoid procrastination: “someday.
Start today.
Financial freedom is not won with a lot of money. It starts with just one smart move.
Don’t simply save money. Make money grow.
