"Suppose one of you wants to build a tower. Will you not first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, “This fellow began to build and was not able to finish.” – Jesus Christ
I can feel many of you pulling away from me already—maybe because I used a Jesus quote, maybe because you feel you’re too young and “you’ll always have time” to prepare for retirement, and you just want spend the first few years pursuing youthful indiscretions. Let me just tell you this: those urges do not go away after graduation. You’ll always want to take the alumni Spring Break trip to the Caribbean, the Greek cruise, the big-screen, the new car, and (gulp!) the Ring. This, in theory, is fine—given that you have the cash to pay for it. Notice I didn’t say the credit.
America has virtually replaced terms like “no,” “wrong,” “wait,” and “discipline,” with “just use credit.” Honestly, which sounds sexier: “No, it’s not wrong to use credit for big things. Discipline yourself and work until you get the cash to own it outright! ” Or: “Live a little! Just put it on your card and pay it later,” or “Leasing or buying a new car shows sophistication!” Or other gems of conventional wisdom. Commercials now tout the Fast Pass MasterCard—quickly tap and go. Or in other words, don’t spend time “thinking” about purchases. Just tap and go!
Many of you will enter the workforce making upwards of 50,000/yr or more. For a single person, that’s not “chump change.” The average American household lives on $40,000 - the celebrated middle of the middle class indeed. When building a financial tower, you want to think about retirement and building a safety net. Like Mr. Covey says: “begin with the end in mind.” Why? What if construction stops early? What if you promise so many workers that “you’ll pay them later” that payroll (you) falls behind? They’ll quit. They’ll sue for their money. All you have is a half-built tower. The bank can help you finish it, but when you die, guess what? They get it, not your kids. And the cycle continues.
You get the foundation in college if you take the right economics class. How many times have you been hit over the head with the ‘20%-New-Car-Depreciation-off-the-lot’ argument… only to go out…and buy a new car anyway? Fool me once...
There’s also a way to build the tower with planning. No, its not “new age,” or “fast-paced.” People will “pity” you for not doing they way they did. But know this: the majority of millionaires in the world didn’t get it in 5 years. You just saw the end-result—when they’re profiled in magazines or on TV. Their wisdom is not hidden, its just doesn’t sound fun. Spend less than you earn, save more than you spend, and put what you save into a high-interest account.
Let’s build that tower together. I’ll help you. And I'll make sure you get help. I didn't do it alone, and since the ideas aren't mine, I won't charge you either.
I can feel many of you pulling away from me already—maybe because I used a Jesus quote, maybe because you feel you’re too young and “you’ll always have time” to prepare for retirement, and you just want spend the first few years pursuing youthful indiscretions. Let me just tell you this: those urges do not go away after graduation. You’ll always want to take the alumni Spring Break trip to the Caribbean, the Greek cruise, the big-screen, the new car, and (gulp!) the Ring. This, in theory, is fine—given that you have the cash to pay for it. Notice I didn’t say the credit.
America has virtually replaced terms like “no,” “wrong,” “wait,” and “discipline,” with “just use credit.” Honestly, which sounds sexier: “No, it’s not wrong to use credit for big things. Discipline yourself and work until you get the cash to own it outright! ” Or: “Live a little! Just put it on your card and pay it later,” or “Leasing or buying a new car shows sophistication!” Or other gems of conventional wisdom. Commercials now tout the Fast Pass MasterCard—quickly tap and go. Or in other words, don’t spend time “thinking” about purchases. Just tap and go!
Many of you will enter the workforce making upwards of 50,000/yr or more. For a single person, that’s not “chump change.” The average American household lives on $40,000 - the celebrated middle of the middle class indeed. When building a financial tower, you want to think about retirement and building a safety net. Like Mr. Covey says: “begin with the end in mind.” Why? What if construction stops early? What if you promise so many workers that “you’ll pay them later” that payroll (you) falls behind? They’ll quit. They’ll sue for their money. All you have is a half-built tower. The bank can help you finish it, but when you die, guess what? They get it, not your kids. And the cycle continues.
You get the foundation in college if you take the right economics class. How many times have you been hit over the head with the ‘20%-New-Car-Depreciation-off-the-lot’ argument… only to go out…and buy a new car anyway? Fool me once...
There’s also a way to build the tower with planning. No, its not “new age,” or “fast-paced.” People will “pity” you for not doing they way they did. But know this: the majority of millionaires in the world didn’t get it in 5 years. You just saw the end-result—when they’re profiled in magazines or on TV. Their wisdom is not hidden, its just doesn’t sound fun. Spend less than you earn, save more than you spend, and put what you save into a high-interest account.
Let’s build that tower together. I’ll help you. And I'll make sure you get help. I didn't do it alone, and since the ideas aren't mine, I won't charge you either.
Posts
No comments:
Post a Comment