Sunday, September 21, 2008

Rita Cheng, financial adviser at Ameriprise Financial Services in Bethesda, Md.

My father emigrated from Taiwan in the 1960s with only $17 to his name and the clothes on his back. Even though he was poor in the material and financial sense, he never considered himself poor. His mantra was that financial wealth alone did not represent one's "true wealth." He stressed the fact that he was rich in spirit and blessed with his education.

The most valuable financial advice that my dad instilled in me was to not define myself by what I have, but rather by my accomplishments and education. He insisted that while money did not buy happiness, it did provide peace of mind, freedom and flexibility. I learned that money should not be the sole determining factor for the decisions I make in life.

His financial wisdom and insight have enabled me to adopt a more balanced, holistic approach to financial matters for which I am eternally grateful.

Frank Ruffing, principal of Farragut Resources, in McLean, Va.

My folks were Depression kids, so their approach was more Poor Richard than Donald Trump. Car notes and credit cards were off-limits, and a second mortgage was a badge of shame.

The key lesson was to live beneath your means. Only by spending less than you earn can you be secure. It is remarkable how many otherwise intelligent people today fail to grasp that truth.

Bob and Eloise's Money Rules:

Always pay cash -- and keep a good record of how you spent it.

Make sure you save enough money to take vacations and to enjoy your free time. This keeps your life in balance and your family happy.

Prepare your kids for college and let them know you expect them to support themselves as adults.

Be generous. Don't be petty with family and friends over dollars and cents. Good relationships are priceless.

Whenever possible, tithe. Donate as much as you can to causes you believe in.

Louis J. Schwarz, founder and managing member of Schwarz Financial Services in Bethesda, Md.

I have never forgotten that when I was 8 years old, my parents took me to the bank to open a savings account and told me that every time I receive cash, including allowances, I ought to put half in my savings account and spend the rest whatever way I want.

I almost can't remember a time when my parents didn't have some sort of financial worries. They fought about money. I knew that I didn't want to live like them, constantly fearing that one day a minor monetary setback would ruin my financial health.

This mentality almost led me too far in the other direction. I graduated from college determined to get a very high-paying job. I also didn't ever like to spend anything because I wanted to be financially independent.

To this day, I still allocate a certain percentage of my earnings to my savings account and investments. I thank my parents for their well-taught principle.