What was the smartest financial advice you've ever received? Is there any one thing or one person that stands out in your mind?
Yahoo Finance put together a list of noteworthy people talking about the best advice they've received. There are a few good quotes in there.
A few of my favorites:
My father is the most frugal human being I've ever met. His most adamant instruction was that I should never under any circumstances go into debt. To this end, he passed along the message his own grandfather had taught him: "Borrowing money is like wetting your bed in the middle of the night. At first all you feel is warmth and release. But very, very quickly comes the awful, cold discomfort of reality.
Dave Barry:
I got my best financial advice when I was 16. I met this kid who was only eight, but he seemed smart, and he said, "If you give me $5, I'll invest it in a company I plan to start someday. In return I'll pay you 10% of the profits."
That young man was Bill Gates. I'm sure he'll remember this, now that it has been revealed in a reputable magazine.
"Whoever cultivates the Golden Mean avoids both the poverty of a hovel and the envy of a palace." I'm not sure when I first read that quotation from the Roman poet Horace, but I used it to introduce my chapter on balanced funds in "Bogle on Mutual Funds." These funds allocate investors' assets between stocks (usually about 65%) and bonds (the remaining 35%).
Today, sadly, balanced funds seem out of fashion, but the idea of the Golden Mean remains great investment advice. Asset allocation is the most important decision investors must make. It helps keep our counterproductive emotions out of the picture, assuring us of some profits when stocks rise and some protection when they fall. It also enables you to "stay the course" through thick and thin. Come to think of it, that's also a pretty good piece of advice.
Back when I was in college, I remember watching Johnny Carson interview Andrew Tobias, who was giving personal financial advice. Johnny asked: "What's the best investment for someone who has only $1,000?" Mr. Tobias said, "Nonperishable consumer staples."
Of course, the audience roared. But Mr. Tobias was being serious and said that if you purchase nonperishables when they are on sale, the return on investment is enormous. That answer focused me on the idea that investing wasn't only about stocks and bonds but rather was a mind-set for making sense of all of the transactions a consumer engaged in.
Advice I've Received
My family wasn't big on advice but there are a few things I remember. Dad told me to "stick to the books and stay away from women while in college." He also said to marry into money. I screwed up both ways I guess.
Grandma said that "more people should be working instead of going to school." I can't argue with that.
However, values were communicated in other ways. We always finished our plates. We didn't waste food. In fact I don't remember much going to waste. Most of this came from 4 grandparents living through the Great Depression.
We always worked and you were expected to do your part even at 10 years old.
What about you? Has any one given you memorable advice? Leave a comment and let me know.
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Comments
12 Comments so far
When do I get my $1000? Barack Obama said we get a $1000 energy payment. When do we get it? Can tax place get it faster to me?
Obama is a pandering politician. Unless he writes a personal check he has no power to give you $1000. Only the full congress can do that.
That really not too good. Do you think he says such a thing to get the vote? Would you do Payday loan or Car title loan? Is one better?
Poo-poo me if you will, but I'd have to say my best financial advice came from Gilligan's Island. No, not from the millionaire, Thurston Howell,III but from the Skipper.
While Gilligan's Island may be foreign to the pisé de terre set, it produced a singing sage. A Broadway producer washed ashore and quickly assembled the castaways into a musical production of Hamlet.
Cast as Polonius, Skipper sang "Neither a borrower nor a lender be. Do not forget, stay out of debt!"
The words of wisdom were intended for Hamlet (Gilligan) but struck a chord with me. That, and make sure you get points when you get a crappy sitcom into syndication…
Gilligan's Island! That's too funny. My most smartest financial advice came from a movie. Remember when that hardass kept telling Maverick that "Son, your ego's writing checks your body just can't cash?"
Well, I took that to mean that I needed to get a faster motorcycle. I did. Maddox Ford can "poo-poo" me if he wants to but other people are paying $4.50 for gas. I am, too, but I ride my motorcycle for a week on like ten bucks. And, it's been paid for since Top Gun 2 came out. Plus, just try popping a wheelie in car!
My best financial advice came from a movie as well. Remember "Better off Dead", that John Cusak comedy from the mid-80s?
Well, there was a tough little kid on BMX bike that shadowed John Cusak throughout the movie. His refrain: "Two dollars. I want my two dollars."
He was trying to collect a measly $2 from his paper route. Wherever Cusak went, the kid was there trying to collect.
The lesson I took from this was that I should stay on top of my A/R. Sales are great but if the money doesn't come in the door, a sale is worthless. I've taken this to heart and vigorously work my receivables. Cashflow is king and I will kick you in the balls for two dollars.
You the fool. There was no Top Gun 2. You must think Iron Eagle 2.
Elan Vital:
If I give you two dollars will you kick Hoo in the balls?
I got some money advice from a movie. In Its a Wonderful Life, George Bailey told me that the money wasn't in the bank- it was in his house, and her house, and Joe's house. Well, late one night I checked and Joe's house didn't really have any money in it. Maybe if he bothered to lock his patio door it might have some money in it.
Mr. Valdez: Based on his other activities, it appears that Christo may be better suited to discuss matters with Hoo. I shall now return to watching Hot Shots: Part Deaux. Its comedic stylings are exquisite!
In H.J. Brown's book, Life's Little Instruction Manual, he suggested that you live in the nicest house you can afford and drive the cheapest vehicle you can.
That's good advice- Live in the nicest home you can afford and drive the cheapest vehicle you can. I must be very wise as I've combined them!