Published in the July 6 – 19, 2016 issue of Morgan Hill Life
By Tracy Newquist
Tracy Newquist
In honor of the Fourth of July, I thought it would be fun to share a “Who’s Who” on the enduring financial wisdom from our country’s forefathers. These icons of United States history serve as everlasting examples of progressive thinking, discipline, perseverance, and sacrifice.
Many of America’s Founding Fathers understood the prudence of frugality and common sense when it came to financial management, while others lived beyond their means and died penniless. What made the difference and what can we learn from our history?
Benjamin Franklin
A contributing author of the Declaration of Independence and the author of “Poor Richard’s Almanac,” a book about being diligent and frugal, Franklin’s insights include:
“Beware of little expenses; a small leak will sink a great ship”
“If you’d be wealthy, think of saving more than of getting…”
“Remember that Money is of a prolific generating Nature. Money can beget Money and its Offspring can beget more, and so on. Five Shillings turn’d, is Six: Turn’d again, ’tis Seven and Three Pence; and so on ’til it becomes an Hundred Pound…” — From “Advice to a Young Tradesman, Written by an Old One” (1748)
His bottom line wisdom: Be frugal. Create a budget and adhere to it diligently. Be patient and save on a consistent basis — time and the power of compounding are on your side.
John and Abigail Adams
The second president of the United States in a letter to Thomas Jefferson in 1787 wrote, “All the perplexities, confusion and distress in America arise not from the defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation.”
John’s wife and First Lady Abigail is noted as stating, “Learning is not attained by chance, it must be sought for with ardor and attended to with diligence.”
Their bottom line wisdom: Not sure what to do? Get advice and stick to it for the long-term.
Working with a financial advisor will not only bring knowledge and clarity to your financial life, but will provide you with a long-term investment plan, properly diversified and aligned with your financial goals and objectives.
Thomas Jefferson
Insight from the principal author of the Declaration of Independence and the third President of the United States includes in a letter to his daughter, Martha: “But I know nothing more important to inculcate into the minds of young people than the wisdom, the honor, and the blessed comfort of living within their income, to calculate in good time how much less pain will cost them the plainest style of living which keeps them out of debt after a few years of splendor above their income, to have their property taken away for debt when they have a family growing up to maintain and provide for.”
His bottom line wisdom: Jefferson’s simple reference to living within one’s means, comes at his own great expense. He not only inherited debt from his father-in-law, he also lived way beyond his means. It’s estimated that he owed more than $100,000 when he died. Practice self-control and understand the importance of saving for your future and not spending yourself into debt.
George Washington
Arguably one of the most prodigious accumulators of wealth among his peers, America’s first president shared keen insight when he spoke: “We should not look back unless it is to derive useful lessons from past errors, and for the purpose of profiting by clearly bought experience.”
His bottom line wisdom: History proves that financial lessons learned, both good and bad, endure the test of time. Knowledge, expert guidance, frugality, prudence, patience and planning can go a long way in getting you closer to your financial goals.
We at RNP are happy to help you get there. We hope you have a happy Independence Day.
Tracy Newquist is president of RNP Advisory Services, Inc., a registered investment advisor, in Morgan Hill. She can be reached at 408-779-0699 or [email protected]. Securities offered through Foothill Securities, Inc., member FINRA/SIPC, an unaffiliated company.
