Nine Thoughts on Personal Finance from America’s Founding Fathers

Let’s celebrate the signing of the Declaration of Independence by celebrating some of America’s founding father’s thoughts on personal finance.

An investment in knowledge always pays the best interest.
- Benjamin Franklin

One thing that I feel is never wasted is money and time spent on purposeful education. If you’re genuinely engaged in learning about a topic and growing as a person, the time and money spent learning and growing is among the most valuable you can spend. It increases your body of knowledge, allows you to understand and solve problems of a new variety, and gives you new skills to share with the world (and with potential employers).

There are two educations. One should teach us how to make a living and the other how to live.
- John Adams

At the same time, if you do nothing but learning and do not share it, you’re missing out on the flip side of life. Learning is a lifelong journey, but it’s one taken hand in hand with making our way in the world with the tools we have right now.

We must make our election between economy and liberty or profusion and servitude.
- Thomas Jefferson

In other words, we have a choice between financial independence and financial dependence. If we spend less, we are in control of our own money. We don’t owe others. We have the freedom to change our employment if we so wish. If we spend outside of our means, we are no longer in control of our money. We owe others and we don’t have the freedom to change our employment other than to chase the dollar regardless of how oppressive or soul-sucking the work is. What do you choose?

We cannot make events. Our business is wisely to improve them.
- Samuel Adams

Life happens. Good events happen. Bad events happen. We can’t foresee most of them. The people who achieve their dreams are the ones that hop on board with the good events (and have the resources to do so) and are also able to roll through the bad events. How do you do that? You do that by not spending everything you earn and keeping some of those earnings for yourself, to deal with the bad and take advantage of the good.

That which we obtain too easily, we esteem too lightly.
- Thomas Paine

Often, the most valuable things in our lives are the things that seem like they’re constantly there. Our homes. Our families. Our closest friends. That’s where the real value is. What’s genuinely more important to you: your best friend or whatever material item you dream about owning?

Associate yourself with men of good quality if you esteem your own reputation. It is better be alone than in bad company.
- George Washington

You are impacted over and over again by the people you associate with. Their opinions and attitudes and reputations rub off on you. If you want to fail, surround yourself with negative people with a history of failure. If you want to succeed, surround yourself with people committed to succeeding.

Commercial shackles are generally unjust, oppressive, and impolitic.
- James Madison

Debt is a very painful game to play. The word “shackles” is actually pretty descrpitive, as is the word “oppressive.” You’re stuck when you’re in debt. You can’t make the choices you might want to make in your life – switching jobs, being a stay at home parent, starting your own business. Debt eats those opportunities – and for what?

In the general course of human nature, A power over a man’s subsistence amounts to a power over his will.
- Alexander Hamilton

If you allow yourself to be in a position where you don’t have any money in reserve for yourself, you’re completely at the mercy of the people who pay you. You will jump when they say jump. You’ll work neverending hours and subject yourself to countless unenjoyable events. Why? You’ve given your employers all of the power.

The greatest ability in business is to get along with others and to influence their actions.
- John Hancock

The ability to communicate with others, state your positions, and convince others to go along with you is one that will serve you well for success no matter what path in life you choose.

Continue reading Nine Thoughts on Personal Finance from America’s Founding Fathers …

From The Simple Dollar.

July 4, 2010 | Filed Under Frugal Living | Leave a Comment

The Sleeping Fox Catches No Poultry

I love reading essays, and I have a collection of essays that have truly inspired me and made me think. Among these is Benjamin Franklin’s classic The Way to Wealth – something I often read when I need a piece of financial inspiration. If the circa-1750 language is rough on your eyes, here are the principles summarized well by Art of Manliness.

Just a few days ago, I read The Way to Wealth again. I was inspired to read it by our survival of the “summer of low income” – I made a tough choice to switch my advertising revenues for The Simple Dollar that resulted in basically no income during the summer, but we made it through to the other side with little problem.

As I was reading through The Way to Wealth, one phrase really stood out at me this time:

The sleeping fox catches no poultry.

What exactly does that little phrase mean in terms of our modern lives? I see it as a call to five things.

It’s a call to be alert. Our world is full of opportunities. Sales. Small investment opportunities. People trying to get rid of things. New jobs. New careers. Love interests. Friendships. Ideas. Purely lucky events, like finding fifty dollars in a parking lot. Every day, we’re brushed with many of these things. If we’re alert, we can see them – and if we choose to, we can take advantage of them, jumping in with abandon. You’ve got to keep your eyes open and see the world as a field of blossoming opportunities.

It’s a call to have resources in reserve. Of course, many of those opportunities are hard to pluck if you don’t have anything to pluck them with. It’s incredibly useful to have some money in reserve. However, money is just one of many resources that’s useful to have in reserve. Do you have relationships you can tap for advice or other things? Do you have time – are you not booked to the maximum with no flexibility in your schedule? Do you have patience to wait for good things to come? Do you have skills and talents that you can apply and share? Resources mean more than just money – much more.

It’s a call to know what you want. The fox sleeps outside the henhouse because he has a hunger for chickens. What are you hungry for? What are your passions? Figure them out and follow them, because when you’re chasing your passions, you’re showing others – and yourself – that this is a life direction that you want. You see more opportunities because you’re passionate, and you’re able to follow up more often because of the knowledge and insight you’ve picked up chasing your passions.

It’s a call to be aggressive. If you’re sleeping, you’re letting the world pass you by. Instead, seek out the opportunities in life. Instead of glancing at that yard sale, stop there. Instead of debating whether to pay $35 for that oak desk, offer $20 for it. Instead of thinking how fantastic that job would be, ask for it. Learn how to be assertive and go after the things you want.

It’s a call to get out there and DO something. Today.

Are you the sleeping fox? Or are you out there, alert, aware, drawing on all of your resources, and catching those hens that you hunger for?