WHAT can 21st century Malaysians learn from an 18th century American printer? As it turns out, a lot.
If you’ve ever had reason to use US currency you’re probably familiar with the mature face on the US$100 bill. It’s Benjamin Franklin’s. Franklin was a one-time printer’s apprentice who morphed from poor runaway to successful printer. He retired early at the age of 42, and then migrated through the roles of scientist, inventor, statesman and even American ambassador to France.
Intriguingly, Ben Franklin was never an American president although he was a major Founding Father of the USA, and a key signatory of both the Declaration of Independence and the US Constitution, which is a huge deal.
I am a major fan of Ben Franklin. So much so, every couple of years I dust off my copy of his autobiography and re-read either all or major portions of it. It’s always a delight for me to do so because it feels like I’m settling in for a comfortable visit with a friend to engage in a deep, familiar conversation.
Franklin was an extraordinary man of gigantic character and vast eclectic interests. (While I recommend you buy a physical copy of The Autobiography of Benjamin Franklin as a permanent fixture in your own library, you may immediately access a free copy online at www.gutenberg.org/ebooks/148 to gain an immediate sense of his engaging writing style.)
SOUND MONEY MANAGEMENT
Today however, I wish to familiarise you with brief excerpts from a different Benjamin Franklin book: The Way to Wealth. It was first published in 1758 as the preface of an annual almanac Franklin wrote and published between 1732 and 1758.
The Way to Wealth is brief yet packed with powerful, pithy sayings on sound money management. While the language used is not what we’re familiar with 260 years after its initial publication, yet Franklin’s writing style showcases the incandescent genius of this generous, admittedly imperfect, always striving self-made man.
Here are eight bits of advice from The Way to Wealth for you to imbibe. Each is followed by my perspective on that nugget of Franklin’s wit and wisdom:
1. “He that hath a trade, hath an estate...”
Invest time and effort to first become good, and then fabulous, at your job or business. The rise of Artificial Intelligence in the next two decades will eliminate hundreds of millions of jobs worldwide. To ensure you’re not amongst those career casualties, keep honing your skills and adding to your professional knowledge base.
2. “Industry pays debts, while despair increaseth them…”
We live in a world fuelled by expanding credit. Almost all of us have debts; it’s a fact of life nowadays. Therefore, stay focused on being an honourable debtor; track all your debts; strengthen your cash flow; pay down your loans with diligence.
3. “If you would be wealthy, think of saving, as well as getting. The Indies have not made Spain rich, because her outgoes are greater than her incomes…”
Again, track your cash flow using a cash flow statement. Diligently increase your total cash inflows even as you retire debts and control your expenses.
4. “Buy what thou hast no need of, and ere long thou shalt sell thy necessaries…”
I understand the lure and allure of being able to make impulse purchases. Nonetheless, focus on distinguishing between useful must-haves and unnecessary would-like-to-have-baubles. While a great life should include some fun and frills, don’t go so overboard that your finances crumble from abuse even as you weaken from age! You want to grow fiscally stronger even as unforgiving time takes its toll on your physical body.
5. “Always taking out of the meal tub, and never putting in, soon comes to the bottom…”
You don’t want to retire from work and your regular generation of active income until you put in place strong sources of passive income from a healthily diversi¬fied portfolio of savings and investments.
6. “... think what you do when you run into debt; you give to another power over your liberty…”
Thank God we no longer live in an age of debtors’ prisons. Nonetheless, we should always borrow carefully with a realistic plan for repayment. Oh, and never, ever do so from rapacious loan sharks!
7. “It is hard for an empty bag to stand upright…”
The goal of Malaysia’s new government is to be transparent and pristine. As our wonderful country tries to clean up its act and cut out the cancer of corruption, each of us should focus on earning hon¬est money and building a spotless, solid financial edifice for our families and ourselves. Doing so will make it easier for us to say ‘no’ to possible future instances of bribery and corrupt practices.
8. “Creditors have better memories than debtors; creditors are a superstitious sect, great observers of set days and times…”
As a debtor keep careful track of all the money you borrow. However, never aim to pay your loans on time! Instead, I recommend you always pay your loans... early!
I hope you relished those ‘Franklinisms’. I encourage you to keep learning from the late great Benjamin Franklin through books and online research. I know doing so will strengthen your mind, your character, and your wallet.
©2018 Rajen Devadason
Read his free articles at www.FreeCool Articles.com; he may be connected with on LinkedIn at www.linkedin.com/in/rajendevadason, or via rajen@RajenDevadason.com. You may follow him on Twitter @RajenDevadason