Benjamin Franklin coined many well-known phrases about money management and advised traders, died over 232 years ago. Biographer Walter Isaacson called Franklin “the most successful American of his time.” And that is no exaggeration. Franklin was very busy.
In addition to his posts as the first Postmaster General of the United States, as a minister in France, as a minister in Sweden, and as President of Pennsylvania, Franklin was also a prolific thinker, inventor, and writer. Franklin acquired most of his wealth and early fame as a writer and publisher. His Poor Richard’s Almanack sold about 10,000 copies a year (which would be equivalent to 3 million copies a year today).
And the man whose portrait now graces the front of the $100 bill had many thoughts on the subject of money. Many of those thoughts and opinions are still valid today, which is not so much a sign that Franklin was ahead of his time, but rather a confirmation that some truths about personal finance are timeless.
“Having been poor is no shame, but being ashamed of it is.”
Where we come from and what we’ve experienced are crucial elements of who we are. And we’re constantly evolving. Never feel bad for the places you’ve been and the choices you’ve made. Just learn, and get better.
“Remember that credit is money.”
It’s easy to forget that borrowed money is still money. Just because you’re not paying now, don’t forget that everything you spend has to be paid back – with interest. And if you don’t know the basics of dealing with credit, now is the best time to learn!
“Rather go to bed without dinner than to rise in debt.”
I’m not a big proponent of starvation, but Franklin is really trying to say that sometimes it’s better to go without if you can’t afford it.
Notice that he’s talking more about the small, temporary expenses. Maybe you need to take out a loan to buy a house or go to college, and you shouldn’t feel bad about it.
“If you would know the value of money, try to borrow some.”
There’s a reason lenders require you to prove you can handle money before they’re willing to lend it to you without all the fees and high interest rates they use to mitigate risk. The more you can prove that you are creditworthy (by consistently paying back the amounts you borrow), the cheaper it will be to borrow money.
“Our necessities never equal our wants.”
It can be difficult to tell the difference, but it’s important to know what you really need and what you just want. And don’t be upset if you bring up what you want (that’s part of life!), but make sure you take care of your needs first.
“Who is rich? He that rejoices in his portion.”
It’s okay to want more out of life, but that shouldn’t stop you from appreciating what you already have. It’s easier said than done, but it’s a crucial factor in finding daily happiness.
“He that waits upon fortune is never sure of a dinner.”
There’s nothing wrong with dreaming big, but hard work is the better choice when it comes to paying the bills. Try to balance the two.
“Happiness consists more in small conveniences of pleasures that occur every day…
“…than in great fortunes that rarely happen to a person in the course of a lifetime.”
To (badly) paraphrase another famous saying, “Life is what happens while you wait for your life to happen.” Why wait? Enjoy the day ahead of you!
“Money never made a man happy yet, nor will it…
“It is not in his nature to produce happiness. The more a person has, the more he wants. Instead of filling a vacuum, it creates one. When it satisfies a need, it doubles and triples that need in other ways.”
It’s undeniable that money makes things easier. But money for money’s sake is a path that has no end. Saving, creating and building money to achieve a goal is a good idea. Hoarding money just to have it only leads to constant dissatisfaction.
“If you know how to spend less than you get, you have the philosopher’s stone.”
The key to any successful budget! However, it can be difficult, especially in financially difficult times or if you have a lot of debt. Be sure to ask for help when you need it.
“By failing to prepare, you are preparing to fail.”
With money and life, you can’t predict all possibilities, but you can always do something to prepare. Do you have 3-6 months of living expenses saved up? Start there!
“He does not possess wealth that allows it to possess him.”
Your money should be a tool that helps you achieve your goals. Beyond that, your money doesn’t define you or your value. Don’t be a tool for your money.
“Wealth is not his that has it, but his that enjoys it.”
Ultimately, we all want to live a happy life. Great wealth should never be measured in monetary terms, but in our daily joy.
What makes you happy? When you think about money – how you spend it and how you earn it – try to relate it to the things that make you truly happy.
“a penny saved is a penny earned. “
It is just as beneficial to save money as it is to earn more. “I’m going to give you $20, but I want you to put it in the bank because a penny saved is a penny earned!”
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