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COMMENTARY | Benjamin Franklin was a successful newspaper editor in Philadelphia as well as a Founding Father of the United States.
As a small newspaper editor for 10 years, I have always been curious about Franklin's inventions as well as his famous writings and money maxims. I gleaned a lot of financial wisdom by reading Franklin's "The Way to Wealth." Most of us have heard his maxim, "Early to bed, and early to rise, makes a man healthy, wealthy and wise," but I wished I had heard his other advice from an early age.
Not to oversee workmen is to leave them your purse open
Last year I lost $60 because I didn't listen to this piece of wisdom. I paid a local landscaper with cash for a yard project, but had to get to an appointment. When I returned an hour later, I found the work undone. The workers were gone, and so was my money. This year, I wrote a $150 check to a handyman, trusting he would do a job for a relative who was out of town. When I checked my relative's house a few days later, I discovered the problem had not been fixed, even though the check had been cashed.
Beware of little expenses; a small leak will sink a great ship
I wished I had meditated on this money maxim when I was just in my 20s. I thought I was only spending a little bit here and there, but my small expenses totaled more than money than I was earning. At first, my lifestyle didn't change. But after 6 years of living beyond my means, I had accumulated more than $20,000 of credit card debt. I was facing financial ruin not because of a major medical bill or expense, but small $5 and $10 purchases made on high-interest credit cards. Now I'm more frugal and more careful.
Have you somewhat to do tomorrow, do it today
When I worked correspondent for a daily newspaper in Indiana, I was paid $50 to $100 for a story. If I procrastinated, I'd typically only write one story. I came up with a simple plan to double my income by getting my first story completed by noon. That usually meant I had plenty of time to write a second or third story by evening. Eventually I went from making $2,000 to $4,000 in a month by breaking my procrastination habit. A few times, I earned as much as $6,000 in one month.
When you run in debt; you give to another power over your liberty
When I had credit card debt in my 20s, I felt as though I was a prisoner. In my 30s, I've still felt tied down by my car loan and mortgage debt. Now that I'm almost 40, I want to have complete power over my own life. I am working frantically to pay off my mortgage in 7 more years. I am staying out of consumer debt so I have better cash flow and less responsibility.
Little strokes fell great oaks
Perhaps my favorite saying by Benjamin Franklin is this one. I chip away at my debt and I chip away at any financial challenges I face. People often underestimate how much progress you can make by taking small actions. I used to save just $50 a month into my Roth IRA. As I increased my earnings, I doubled it to $100 and later tripled it. Even when I was broke, I found a way to scrape together enough money to pay extra on my college loans and pay off my car debt. In recent years, I've paid down my mortgage with the same tenacity.
When it comes to teaching my sons about money, I know I'm not more enlightened than the man who was a major figure during the American Enlightenment. I often repeat Franklin's wise sayings. I know it will point my sons on the way to wealth.
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