Benjamin Franklin was so varied in his accomplishments, he almost seems like a mythical character.
One of the leading scientists of his time, he discovered key principles of electricity and first documented the Gulf Stream. He invented the lightning rod, the Franklin stove, and bifocal glasses—all of which are still in use today. He took an early stand against slavery. And finally, he helped draft and signed his name to the Declaration of Independence.1
But he made his money in publishing. Demonstrating his rare combination of a brilliant mind and an aptitude for common sense, Franklin’s almanac was essential reading in the Colonies.
You’re probably familiar with some of his proverbs about money. For example, in 1758 he wrote, “A penny saved is a penny got.”2 A saying that gets more apropos the higher your tax bracket.
Financial writer Lou Carlozo has noted four pieces of financial advice from Franklin that though written in the mid-1700s, are just as true today.3
“There are no gains without pains.” Weightlifters have made this their mantra, but this principle is also true outside the gym—especially in the area of money. Becoming financially healthy and saving aggressively for retirement require sacrifice. If you spend without restriction and then just hope to save what’s left over, you will not reach your retirement goal.
“Beware of little expenses. A small leak will sink a great ship.” Small purchases can add up in a big way. We’ve all looked at our credit card statement and wondered how we racked up thousands in expenditures without making a major purchase. A budget is hugely helpful in plugging these “leaks” because it requires you to track expenses as you spend.
“Rather go to bed supperless than rise in debt.” Franklin felt strongly about spending beyond one’s means. In another place he says that when you rely on credit, you are giving your freedom away. Going into debt, especially for things you don’t need, greatly limits what you can do in the future.
“Save while you may; no morning sun lasts a whole day.” Put away as much money as you can while you have a career, because the time will come when you don’t have that way of consistent source of income. With the majority of Americans retiring sooner than they expected, this saying is more applicable than ever.4
At the heart of Franklin’s wisdom is the powerful idea that you are responsible in your financial well-being. Be proactive in the things you can control. And don’t worry about things you have no influence over.
If you could use some guidance in getting your finances on track this year, your trusted fiduciary retirement planner would be happy to help.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
10421 South Jordan Gateway, Suite 600
South Jordan, UT 84095
Disclosure: This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Fiduciary Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.
