Financial Fitness

Being old and poor is much worse than being young and poor. If you make a mess of things while you are young, there is still time to make up for your mistakes. Seniors don’t have that luxury. As Tennessee Williams said, "You can be young without money but you can't be old without it."

In my youth, I overspent and got into debt. It was hell. Later, while still a young man, I took charge of a business that was teetering on the edge of bankruptcy. (In those days, the government didn't give other people's money to failing private enterprises.) Climbing out of those holes was tough going, but it taught me valuable lessons about financial fitness.

"I have been pondering what advice to give about money. What I keep coming up with is this: Do not act like typical Americans. Do not fail to save. Do not get yourself in debt up to your eyeballs. Work and take pride and honor from your work. Learn a useful skill that Americans really need, like law or plumbing or medicine or nursing . . . " —Ben Stein

Obviously, Mr. Stein was offering common sense to younger adults about personal finance and their future. However, his smart advice should apply to anyone at any age, particularly the part about "Do not get yourself in debt up to your eyeballs."

Yet people in government today are telling us we need to spend more to get the economy going. This in spite of the fact that easy credit and buying things people could not afford is what has gotten so many of them in trouble. This is not financial fitness. Unless you expect the government to come along and bail you out personally, you had better . . .

Protect yourself

Here are five things that my years have taught me personally about financial fitness:

• Live somewhat beneath your means and you’ll sleep well at night.

• Beware of too many trappings bought mainly for appearance sake. My stepmother called it “putting on the dog.”

• If you are an entrepreneur, invest in your business. Invest in things that will actually make it better, more competitive.

• Always put a predetermined percentage of your income aside, some for growth and some for a rainy day. The earlier people begin this in life, the better off they will be later on. I prefer the “don’t put all your eggs in one basket” approach.

• Never buy on time (credit) personal items that historically depreciate in value. Never, never, never. Save and pay cash.

• Do not charge anything on a credit card that you cannot pay for in full when the first payment is due. If you are unable to discipline yourself, get rid of the credit cards.

One good book to have at hand is Eric Tyson’s Personal Finance for Dummies. I have referred to it often and saved time and money as a result. Whenever he updates the book, I get the latest edition.

Of further interest to mature adults . . .

• Retirement Bliss
  Discover a little secret to making your act-2 in life an astounding success.
  
  
• Additional Retirement Income
  A suggestion that anyone in or near retirement may want to consider.
  
  
• Wills and Trusts
  Knowing that you have a properly drawn will or trust is liberating. Here is why.