The Best Grandpa Advice Ever

This pandemic time has made me reflect a lot on my grandpa´s teachings. Wash your hands; Don’t talk to strangers; Clean your room, and Learn to choose your friends! are phrases that Covid-19 makes me rumble in my head and leads me to value those recommendations from my childhood.

Nowadays, when in the middle of the confinement, the curfew and the economic resection, the media invade us with advertising that invites us to reinvent ourselves, and that is when the memory of a phrase from my grandfather jumps to my mind telling me, “Do not put all your eggs in the same basket.”

It sounds weird, but it is true. When I was a child, my grandfather always told me: Hey Iván, please, help me put the eggs in different parts of the kitchen, 30% in the fridge, 30% in the cupboard, and 40% in the egg’s storage box. Always I was wondering why my grandpa ordered me more tasks; it did not make sense. But in my home country, Colombia, the rule is that the younger grandchild must pay attention and obey if the grandpa says something.

Some years have passed, and this instruction continues to be an essential piece of advice for my finances. Suppose I move it into an academic scenario. In that case, the exact definition for this is “Risk Diversification,” however, it’s as simple as I mentioned, “do not put all eggs in the same basket.”

Unfortunately, the current situation of Covid-19 puts personal finances at risk. Some people lost their jobs and had to expend their savings, close their own business, and sell essential assets. However, we must be optimistic and have faith, besides do not be pessimistic. On the contrary, it is the time to be creative and innovative. 

Below, I will share three bits of advice to not fall into the error of breaking all the eggs.

Three bits of advice to care your finances:

  • Set a goal of having an additional income each month. for example, one payment could be the salary, another could be selling products from a catalogue (Amway, Tupperware or Mary Kay), and an additional good idea for weekends, sell Colombian empanadas to the community residing in Toronto.
  • Create a common savings fund. Do not forget that working as a team with the family is the most efficient way to achieve goals. Therefore, establish a savings quota for each family member; at the end of the month, this quota will be deposit into a savings account that generates a return.
  • Make a goal to avoid unnecessary expenses. For example, do not buy coffee in a store, instead, prepare this coffee at home and use a thermos that allows you always to have this hot drink. Technically, these expenses are called “Ant Expenses,” it is little expenses that add up to a high amount in a given time.

These are three relevant bits of advice that I hope you follow. Today I want to share another essential piece of advice; this is a gift for you: Always ask the Star Question!

But, What is the Star Question? Star’s question is the self-reflection that people have to do when they are in the mall, and suddenly, they see a fantastic product with an advertisement that says, “Clearance only for today.” Please, please, at that moment, stop and ask yourself, Do I need this product?Without this product, Can I survive?. But please, be reasonable, and avoid being emotional. Indeed, if you can answer this star question in a wealthy mood, you will save much more money than you can imagine. 

Never forget the best grandpa advice. It could change your life forever!

By Ivan Donoso

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