Classic Money Advice That Stands the Test of Time

There’s a reason you hear the same nuggets of financial advice time and again from lots of different sources: podcasts with successful entrepreneurs, investment self-help books, even your own crew of money mentors. That's because these tenets really do work when it comes to managing your money and building a solid financial future.

To that end, we've rounded up some of the best of these old-school money mantras. They cover the gamut, from budgeting basics to growing your money to supporting yourself through retirement and beyond. Find out why they stand the test of time and how you can tap their wisdom.

It's the basic principle of earning a paycheck: After subtracting taxes and other pay period deductions, the money you make goes directly into your pocket. But the idea of actually paying yourself goes beyond just depositing your wages every two weeks. This mantra is all about setting aside some of that take-home pay for your future: your emergency fund, your debt pay-down goals and retirement.

It's not easy, we hear you. But it helps to look at it as your opportunity to prioritize yourself and your needs — needs that may not even be on the horizon yet.

How to Do It: The first step is to review your income and expenses and commit to a realistic savings amount to dedicate toward your goals on a regular basis. Feel like you can't spare a cent? Remember that starting small, even allocating just 1% of your take-home pay to your 401(k) or emergency fund, is better than nothing.

Then, set up an automatic transfer to a separate account for your goal that hits the same day you get paid, so that the money disappears from your checking account before you can spend it. This is the money you're paying to yourself. Every six months, adjust your automatic transfer by a small increment (like $25 or 1%) to build this habit over time.

It’s tempting to buy a flashier car or upgrade your wardrobe when your income gets a boost. But not allowing your spending to surge out of proportion to the amount that's coming in can help get you to financial security. Even better? Living below your means provides you with the peace of mind that you’ll always have enough spare cash for fun stuff (vacations!) and rough patches (unforeseen bills).

How to Do It: Start now! The earlier you start, the easier it will be later.If you wait until you make more money, live in a nicer apartment, have a mortgage or have kids, you may find it more challenging to live below your means.

Start by reviewing your budget to ensure that you do, in fact, have less money going out than coming in. If your balance sheet isn't in sync, trim some non-essential spending, like trading in cable TV for a streaming service or swapping pricey boutique classes for a more modest gym membership. Also, don't be tempted to rely on credit cards if you can’t pay them off in full every month. With every rise in your cash flow — a pay raise, tax refund or extra dollars from a side gig — consider putting 50% immediately toward your savings goals, so you won't have easy access to it for impulse purchases or lifestyle upgrades.

When times are flush, it's hard to imagine having to deal with an out-of-nowhere medical emergency or a job layoff. But things happen, and it pays to be prepared — otherwise you may end up going into debt to cover unexpected expenses

How to Do It: If you’ve never funneled savings into a dedicated emergency fund, you’ll want to start by stashing away at least one month's take-home pay before accelerating any other financial goals. Once you’ve reached that benchmark, continue to save up to about six months of expenses, depending on your situation.

Socking cash away in a traditional savings account may not provide enough growth to meet your goals, depending on what that goal is. For longer-term goals like retirement or, say, buying a home in the next five to 10 years, having your money parked in an account with a super-low interest rate is akin to letting it collect dust. So this piece of advice suggests investing your cash so you're better able to take advantage of the power of compound growth.

Just remember that investing does come with risk, as no one can know how the economy will act at any given time. How much risk you're willing to take is up to you, but keep that in mind when choosing where to put your savings.

How to Do It: If you're looking into a low-risk investment like a certificate of deposit, comparison shop for the best savings or CD rate, just as you would shop around for anything else.

For those who have goals five or more years out and are ready to dip their toes into the markets, consider a low-cost, diversified portfolio. Being diversified — that is, investing in a mix of different kinds of assets — is key because, no matter how savvy you are, no one can truly predict how the market will rise and fall. Thus, it's better not to put all your eggs into one proverbial basket. You'll still be dealing with a certain level of risk, but diversifying helps spread that risk out among your investments.

“Invest in as much of yourself as you can,” Warren Buffet likes to say. His point is that every person is his or her greatest asset—so you should foster your talents, build your skills and otherwise better yourself in order to help you realize greater financial rewards down the road. Investing in yourself might mean going back to school, taking a job abroad or simply attending a conference within your industry where you can get your name out there.

How to Do It: In some cases, higher education or learning a trade could mean better earning power. Just make sure you weigh the pros and cons of taking on student debt; ultimately, a lot of debt may not make that extra degree worth it.

Just like with other major investments, you should always look at your bottom line and see what you can afford — as well as the potential payoff — before enrolling in classes or pursuing a dream position that requires relocating across the world.