I remember hearing the story of a man who applied for a job as the manager of his department. He had worked for the company for 15 years, which gave him seniority over the other applicants. When he found out he didn’t get the promotion, he complained to the boss, reminding the boss that he had 15 years’ experience. The boss proceeded to tell the employee that he didn’t get the job because the employee had 1 year of experience 15 times, and not really 15 years’ experience.
As I venture into the world of writing/blogging, I hope it will become clear that my 30+ years in the financial planning advice business was not just 1 year of experience 30 times!
There is much “art” that goes along with the science of financial planning, especially as it relates to investment management. Sometimes just plain old common sense reveals the right solution to a problem. I grew up as a PK (preacher’s kid) with three brothers and one sister. My parents were VERY frugal, but they still made sure that their children didn’t feel like they were making large sacrifices. My parents couldn’t really teach me anything about managing money, since they never really had any. But they did teach me the one financial lesson that is the basis of nearly all financial decisions—spend LESS than you make!
The temptation to buy, buy, buy is great! However, no matter how low or high your income, if you spend less than you make, you at least have a chance to become financially independent. I have met folks who earn $25,000 a year and are as happy as anyone I have ever met. I have also met folks who make well into six figures ($100,000+), but they are miserable. They have more “stuff,” but that “stuff” has not made them happy.
We all have heard the saying that “money isn’t everything, but it’s way ahead of whatever is in second place.” Or, “money won’t make you happy, but being poor doesn’t either!” Of course, we all need money to operate in this world. It’s your attitude about money that will determine whether you will be a slave to it or you will use it to leave a legacy of discipline and control.
