Post of the Day
May 19, 1998
Communion of Bears Board
Subject: Re: Will I be wealthy, or am I too cocky?
Seems like we all are looking for a quick and easy road to riches. Here is a story about reaching that the old fashioned way--hard work.
My father was a wage earner (railroader) all his life. My mother was a home maker. My brother and I never really wanted for anything during childhood. I took a world cruise starting at 17 which lssted until 23 (seeing the world through a U.S. Navy porthole). Father retired. He and Mom started living out their golden years in a long awaited lifestyle Bought a camper traveled and fished. My place in Florida for deep sea fishing in the Fall. My brothers place in Alaska for Salmon fishing in the summer. Snuggled into home base during the winters.
|"When Dad died I was considerably worried about the wefare of my Mother. In settling the estate I found a cash in the bank of over a million dollars."|
When Dad died I was considerably worried about the wefare of my Mother. In settling the estate I found a cash in the bank of over a million dollars. My God--where did all this money come from? I asked Mom. She explained their system for a road to riches.
From the day they were married-she at 18--he at 21--they took ten percent of every paycheck and put it in bank savings. That was untouchable until he retired. And during their entire life the only debt they had( and the only interest expense) was a house mortgage . When they wanted something the saved out of the 90 percent until they had enough to buy for cash. If they couldn't swing it for cash they did without. Regardless--that ten percent was never touched.
|"Therein lies their key to riches. Hard work. Steady savings with the power of compounding interest and no debt, meaning no interest expense."|
Paycheck after paycheck year after year that money went into savings and stayed there compounding interest year after year. Upon retirement they spent from it whatever they wanted to make their retirement years golden. Mom lived comfortably and actively for another 15 years with railroad retirement as current income. Still she never tapped the savings and never incurred a cent of debt. Therein lies their key to riches. Hard work. Steady savings with the power of compounding interest and no debt, meaning no interest expense.
It may sound dull and dreary--but they never wanted for anything. They retired comfortably and worry free. I see a lot of posts knocking stowing away money in a money market account. We want a buck to spring into a tenner in a flick of the eye. Life just doesn't work that way. I am not knocking investing and the market I have been in the market for almost 40 years--love it--have done well. But I gained my initial nut so I could be a trader just like my parents. Steady savings. Buying a chevy instead of a caddy, staying out of debt and never ever knocking the power of compound interest.