Don't waste money on expensive habits or vices.
Don't waste money on expensive habits or vices.
Ben Franklin expresses the need for us to live frugally and not to waste money by buying expensive foods, or wines or teas. Imagine what Ben would think of the latte culture we've been indulging! Franklin says, "What maintains one vice, would bring up two children." The lesson here is to spend less on frivolous things that are unnecessary in our lives and spend that money on the important parts.
Beware of little expenses.
Franklin quotes Poor Richard about spending small amounts of money without being aware of how much of your money is slipping through your fingers. It's so easy to lose track of money once a $20 is cashed. But as Poor Richard says, "Beware of little expenses; a small leak will sink a great ship."
Don't buy what you don't need.
This is a good lesson to take to heart. Many people buy things not because they need them, but because the price was too low to pass up. Poor Richard is quoted here: "Buy what thou hast no need of, and ere long thou shalt sell thy necessaries." Franklin condemns the practice of dressing in the finest clothes but going hungry in order to afford that lifestyle.
Don't go into debt for your lifestyle.
If you can't pay for the nice clothes, Franklin says it's no good to go into debt in order to have them. "Think what you do when you run into debt," Franklin writes, "You give to another power over your liberty." Franklin also quotes Poor Richard who says it is better to go to bed without supper than to rise in debt.
Think of saving as well as getting.
Franklin believed that saving one's money was the same as earning it and more virtuous. By saving money instead of borrowing money to buy things, one can learn how to manage their expenses. Living frugally, keeping the "outgo" less than the "income" is the way Franklin sees the road to wealth.
Ben Franklin's advice is time-tested and based on common sense. Unfortunately, in today's era of borrowing and excessive living, that financial common sense is less common.
