Ben Franklin's Guide to Wealth: Being a 21st Century Treatise on What It Takes to Live a Rich Life
By Erin Barrett and Jack Mingo
()
About this ebook
Ben Franklin’s Guide to Wealth is the modern version of the treatise The Way of Wealth by Richard Saunders—one of Ben Franklin’s many pseudonyms. Franklin practiced what he preached in the treatise, and it made him rich enough to have a full life, travel extensively, and follow his intellectual musings, which in turn led him to become an accomplished scientist, inventor, political activist, diplomat, and writer. Franklin wasn’t born rich. He built his legacy using his intelligence, curiosity, natural good sense, and proclivity for thrift and hard work. When he died, he left a fortune. Now the authors bring practicing what Franklin preached up to date for today’s busy lifestyles, with sage advice on a range of financial basics including debt, thrift, the value of work and business, developing financial responsibility, money and time, and preparing for the future.
It’s time to think about what “rich” really means. It’s time to get back to financial basics. It’s time to look for guidance from America’s original financial guru—Ben Franklin.
Erin Barrett
Erin Barrett is the author of a kids' trivia book from Klutz Press; she has written for magazines and newspapers, such as Icon and the San Jose Mercury News, and has contributed to several anthologies, including the Uncle John's Bathroom Reader series. She and Jack Mingo have also designed numerous electronic and online games. They live in Alameda, California, with their family.
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Ben Franklin's Guide to Wealth - Erin Barrett
INTRODUCTION
What Can Ben Franklin Teach Us?
A word to the wise is enough.—Ben Franklin
Most people live dysfunctional financial lives. As a result, many people are miserable. The misery comes in many packages: pressing credit card bills, the disaster of lost income, fear of the future, or getting stuck in dead-end jobs because they can't afford
to leave.
There is plenty of miracle money advice out there. Most seems designed to add even more stress and fear. Do you need an extra job? Have you bought a house yet? Do you have a huge stock portfolio? Are you as rich as your neighbors? Have you saved up the hundreds of thousands of dollars you'll need to get your kids in the right
schools or the millions of dollars you'll need to retire comfortably
?
But perhaps the modern cures are wrong. If you're someone who has followed the financial wisdom
of the last few decades, you may have seen your pension disappear as a result of corporate corruption or your stock investments die in the dot-com bust, or you may have suffered unemployment or the squeeze of enforced overtime as jobs disappeared and tax breaks went to the obscenely rich. The new
ideas have been shown to be wanting. So where do we look? Perhaps we should listen to the advice of the guy who appears on the $100 bill: Ben Franklin. While thought of as hopelessly outmoded in this orgy of modern-day borrowing and investment, maybe old-fashioned, penny-saved-is-a-penny-earned
Ben had it right all along.
They that won't be counseled, can't be helped.
—Ben Franklin
Benjamin Franklin was absolutely brilliant in many areas of life. And he wasn't a do as I say, not as I do
sort of guy. He actually applied his ideas to the circumstances in his own life. He compiled his thoughts about how to live a healthy financial life, and he followed them and became wealthy. How wealthy? Rich enough to have a full life, to travel extensively, to follow his intellectual musings, and to help him become the most accomplished scientist, inventor, political agitator, diplomat, writer, and journalist of his time. When he died, Franklin left a fortune, both in money and in his legacy to the world.
When you consider the scope of his accomplishments, they seem even more impressive when you consider that the only advantages Franklin had were intelligence, curiosity, native good sense, and a home life that gave him a proclivity for hard work and thrift. He was the fifteenth child of seventeen, the youngest son of Josiah and Abiah Franklin. His father supported his family by making soap and candles in Boston.
Benjamin Franklin received only two years of formal schooling. He got good grades in reading, fair grades in writing, and poor grades in mathematics. At the age of ten, his father decided the family could afford no more education for him and brought him home to work in the family business, melting tallow and cutting wicks. In his teen years, he was apprenticed to an older brother, who owned a print shop, but at age seventeen he ran away from his commitment to Philadelphia. There he worked for several printers until, at age twenty-four, he opened his own print shop and began writing and printing the Philadelphia Gazette.
Experience keeps a dear school, but fools will
learn in no other, and scarce in that.
Believing that leisure is the time for doing something useful
and that the doors of wisdom are never shut,
Franklin read everything he could get his hands on, worked systematically on his writing and math, and studied French, German, Italian, Spanish, and Latin, making himself one of the best-educated people of his time.
Meanwhile, his printing business prospered. One of his neighbors noted at the time:
The industry of that Franklin is superior
to anything I ever saw. . . . I see him still at
work when I go home from the club; and
he is at work again before his neighbors
are out of bed.
The Gazette became one of the most successful papers in the colonies at that time, but Franklin achieved his biggest success with Poor Richard's Almanack, which he published annually under the name Richard Saunders
from 1733 until 1758. The essay that has been reprinted since then as The Way to Wealth
(see appendix) appeared in the last issue of the Almanack, and included quotes from the previous two and a half decades, humorously framed by a selfmocking tall tale. It is upon these aphorisms that this book is based.
Sometimes a particular book changes its authors' lives. When we began writing this one, we decided that if we followed Franklin's advice and example, we might end up just as fortunate as he was. Frankly, we had a lot to learn and still do. Although Mr. Franklin's advice may seem severe and old fashioned, we discovered that we got a great deal of satisfaction—and improved our financial situation—trying to live the lessons herein. We hope you will, too.
There are ten main sections to the book. You can go through them in order or skip around based on your needs. Read one a day or one a week. We encourage you to use this guide creatively in a way that will benefit you the most.
Good luck and best wishes for a happy, prosperous life.
Erin Barrett
Jack Mingo
If you will not hear reason, she'll surely rap
your knuckles.—Ben Franklin
SECTION 1
TIME IS MONEY
Doest thou love life? Then do not squander
time, for that is the stuff life is made of.
How do you spend your time? Despite the cliché, time is not really money. However, in some ways it helps to think of it as being very much like money:You can spend it wisely or foolishly. You have a finite amount of it. And it's likely to slip away unnoticed if you're not careful.
Are you getting the best value from your time? Just as many goods are not worth the money spent on them, many daily activities are not worth the time spent on them. While some may decide that a single-minded pursuit of money is the best use of their time, others will want to invest their time in other ways that they find valuable. To become aware of how you invest your time (or simply let it slip away), experiment with keeping a time and activity log.
Try this exercise: Keep a log in quarter-hour increments to see what you spend your time on during a typical week. At the end of the week, categorize your time spent and add up the total amount of time for each category. How much time do you spend commuting, attending meetings, or doing errands? How much time do you spend watching television, talking on the phone, or surfing the Internet? How much time do you spend feeding your mind, sleeping, developing your talents, organizing, cleaning, preparing meals, or engaged in worthwhile activities