GET THE FACTS DOWN ON PAPER!
WHEN ARNOLD BENNETT STARTED OUT IN LONDON FIFTY YEARS AGO TO BE A NOVELIST. HE WAS POOR AND HARD-PRESSED. SO HE KEPT A RECORD OF WHAT HE DID WITH EVERY SIXPENCE. DID HE WONDER WHERE HIS MONEY WAS GOING? NO. HE KNEW. HE LIKED THE IDEA SO MUCH THAT HE CONTINUED TO KEEP SUCH A RECORD EVEN AFTER HE BECOME RICH, WORLD FAMOUS, AND HAD A PRIVATE YACHAT.
YOU AND I. TOO, WILL HAVE TO GET NOTEBOOKS AND START KEEPING RECORDS. FOR THE REST OF OUR LIVES? NO, NOT NECESSARILY. EXPERTS ON BUDGETS RECOMMEND THAT WE KEEP AN ACCURATE ACCOUNT OF EVERY NECKEL WE SPEND FOR AT LEAST THE FIRST MONTH - AND , IF POSSIBLE, FOR THREE MONTHS. THIS IS TO GIVE US AN ACCURATE RECORD OF WHERE OUR MONEY GOES, SO WE CAN DRAW UP A BUDGET.
OH, YOU KNOW WHERE YOUR MONEY GOES? WELL, MAYBE SO, BUT IF YOU DO, YOU ARE ONE IN A THOUSAND! MRS.STAPLETON TELLS ME IT IS A COMMON OCCURENCE FOR MEN AND WOMEN TO SPEND HOURS GIVING HER FACTS AND FIGURES, SO SHE CAN GET THEM DOWN ON PAPER - THEN, WHEN THEY SEE THE RESULT ON PAPER, THEY EXCLAIM, IS THAT THE WAY MY MONEY GOES? THEY CAN HARDLY BELIEVE IT. ARE YOU LIKE THAT? COULD BE.
2. GET A TAILOR-MADE BUDGET THAT REALLY
FITS YOUR NEEDS!
MRS. STAPLETON TELLS ME THAT TWO FAMILIES MAY LIVE SIDE BY SIDE IN IDENTICAL HOUSES, IN THE VERY SAME SUBURB, HAVE THE SAME NUMBER OF CHILDREN IN THE FAMILY, AND RECEIVE THE SAME INCOME - YET THEIR BUDGETING NEEDS WILL BE RADICALLY DIFFERENT. WHY? BECAUSE PEOPLE ARE DIFFERENT. SHE SAYS A BUDGET HAS TO BE A PERSONAL, CUSOM-MADE JOB.
THE IDEA OF A BUDGET IS NOT A WRING ALL THE JOY OUT OF LIFE. THE IDEA IS TO GIVE US A SENSE OF MATERIAL SECURITY - WHICH IN MANY CAUSES MEANS EMOTIONAL SECURITY AND FREEDOM FROM WORRY. PEOPLE WHO LIVE ON BUDGETS, MRS. STAPLETON TOLD ME, ARE HAPPIER PEOPLE.
BUT HOW DO YOU GO ABOUT IT? FIRST AS I SAID YOU MUST LIST ALL EXPENSES. THEN GET ADVICE.
I ASKED MRS. STAPLETON, "WHAT WOULD YOU DO, IF YOU LIVED IN A SMALL TOWN, OR ON A FARM, AND WANTED PERSONAL ADVICE ON DRAWING UP A BUDGET, SHE ANSWERED, I WOULD TERRITORY, I WOULD ASK THAT PAPER WHERE I COULD GET PERSONAL GUIDANCE IN DRAWING UP A BUDGET - AND I WOULD TRAVEL ALL DAY, IF I HAD TO, TO GET THAT ADVICE.
3. LEARN HOW TO SPEND WISELY
BY THIS I MEAN: LEARN HOW TO GET THE BEST VALUE FOR YOUR MONEY . ALL LARGE CORPORATIONS HAVE PROFESSIONAL BUYERS AND PURCHASING AGENTS WHO DO NOTHING BUT GET THE VERY BEST BUYS FOR THEIR FIRMS. AS STEWARD AND MANAGER OF YOUR PERSONAL ESTATE, WHY SHOULDN'T YOU DO LIKEWISE?
4. DON'T INCREASE YOUR HEADEACHES
WITH YOUR INCOME
MRS. STAPLETON TOLD ME THAT THE BUDGETS SHE DREADS MOST TO BE CALLES INTO CONSULTATION ON ARE FAMILY INCOMES OF FIVE THOUSAND A YEAR. I ASKED HER WHY. "BECAUSE" SHE SAID, "FIVE THOUSAND A YEAR SEEMS TO BE A GOAL TO MOST AMERICAN FAMILIES. THEY MAY GO ALONG SENSIBLY AND SANELY FOR YEARS- THEN, WHEN THEIR INCOME RISES TO FIVE THOUSAND A YEAR, THEY THINK THEY HAVE ARRIVED. THEY START BRANCHING OUT. BUY A HOUSE IN THE SUBURBS THAT DOESN'T COST ANY MORE THAN RENTING AN APARTEMENT. BUT A CAR, A LOT OF NEW FURNITURE, AND A LOT OF NEW CLOTHES - AND THE FIRST THING YOU KNOW, THEY ARE RUNNING INTO THE RED. THEY ARE ACTUALLY LESS HAPPY THAN THEY WERE BEFORE - BECAUSE THEY HAVE BITTEN OFF TOO MUCH WITH THEIR INCREASE IN INCOME.
THAT IS ONLY NATURAL. WE ALL WANT TO GET MORE OUT OF LIFE. BUT IN THE LONG RUN, WHICH IS GOING TO BRING US MORE HAPPINESS - OR HAVING DUNNING LETTERS IN THE MAIL AND CREDITORS POUNDING ON THE FRONT DOOR?
5. TRY TO BUILD CREDIT, IN THE EVENT
YOU MUST BORROW
BE SURE YOUR INSURANCE POLICIES HAVE A SAVINGS ASPECTS, IF YOU WANT TO BORROW ON THEM, FOR THIS MEANS A CASH VALUE. CERTAIN TYPES OF INSURANCE, CALLED "TERM INSURANCE" ARE MERELY FOR YOUR PROTECTION OVER A GIVEN PERIOD OF TIME AND DO NOT BUILD UP RESERVES. THESE POLICIES ARE OBVIOUSLY OF NO USE TO YOU FOR BORROWING PURPOSES. THEREFORE, THE RULE IS, ASK QUESTIONS! BEFORE YOU SIGN FOR A POLICY, FIND OUT IF IT HAS A CASH VALUE IN CASE YOU HAVE TO RAISE MONEY.
NOW, SUPPOSE YOU DON'T HAVE INSURANCE YOU CAN BORROW ON, AND YOU DON'T HAVE ANY BONDS, BUT YOU DO OWN A HOUSE, OR A CAT, OR SOME OTHER KIND OF COLLATERAL. WHERE DO YOU GO TO BORROW? BY ALL MEANS, TO A BANK! BANKS HAVE A REPUTATION TO MAINTAIN IN THE COMMUNITY, AND THEY WILL USUALLY DEAL WITH YOU FAIRLY. FREQUENTLY IF YOU ARE IN A FINANCIAL JAM, THE BANK WILL GO SO FAR AS TO DISCUSS YOUR PROBLEMS WITH YOU, MAKE A PLAN, AND HELP YOU WORK YOUR WAY OUT OF YOUR WORRY AND INDEBTEDNESS. I REPEAT, IF YOU HAVE COLLATERAL GO TO A BANK!
HOWEVER, SUPPOSE YOU ARE ONE OF THE THOUSANDS WHO DON'T HAVE COLLATERAL, DON'T OWN ANY PROPERTY, AND HAVED NOTHING TO OFFER AS GUARANTEE EXCEPT YOUR WAGES OR SALARY? THEN AS YOU VALUE YOUR LIFE, HEED THIS WORD OF WARNING! DO NOT DO NOT APPLY TO A "LOAN COMPANY" WITHOUT MAKING SURE THAT IT OPERATES UNDER STATE LICENSE. THE 32 STATES WHICH DO HAVE THIS LAW, HOWEVER, THE LICENSED LOAN COMPANIES CAN USUALLY BE DEPENDED ON. MOST OF THEM ARE ETHICAL, HONEST, AND STRICTLY ON THE LEVEL. THEY ARE DOING A SERVICE TO THOSE PEOPLE WHO ARE FACED WITH ILLNESS OR EMERGENCY AND HAVE TO RAISE MONEY. THEY CHARGE A HIGHER RATE OF INTEREST THAT THE BANKS, BUT THEY HAVE TO DO THIS, FOR THEY TAKE GREATER RISKS AND HAVE GREATER EXPENSES IN COLLECTING. BUT, IF YOU LIVE IN A STATE WHERE LOAN COMPANIES ARE UNREGULATED. BEFORE DOING BUSINESS WITH ANY LOAN COMPANY, GO TO YOUR BANK, TALK TO ONE OF ITS OFFICERS, AND ASK HIM TO RECOMMEND TO RECOMMED A LOAN COMPANY THAT HE KNOWS TO BE FAIR.
RULE NO 6. PROTECT YOURSELF AGAINST ILLNESS,
FIRE, AND EMERGENCY EXPENSES.'
INSURANCE IS AVAILABLE, FOR RELATIVELY SMALL SUMS, ON ALL KINDS OF ACCIDENTS, MISFORTUNES, AND CONCEIVABLE EMERGENCIES. I AM NOT SUGGESTING THAT YOU COVER YOURSELF FOR EVERYTHING FROM SLIPPING IN THE BATHTUB TO CATCHING GERMAN MEASLES - BUT I DO SUGGEST THAT YOU PROTECT YOURSELF AGAINST THE MAJOR MISFORTUNES THAT YOU KNOW COULD NOT YOUR MONEY AND THEREFORE DO COST YOU WORRY. IT'S CHEAP AT THE PRICE.
RULE NO 7. DO NOT HAVE YOUR LIFE-INSURANCE
PROCEEDS PAID TO YOUR WIDOW IN CASH
IF YOU ARE CARRYING LIFE INSURANCE TO PROVIDE FOR YOUR FAMILY AFTER YOU'RE GONE, DO NOT, I BEG OF YOU, HAVE YOUR INSURANCE PAID IN ONED LUMP SUM.
WHAT HAPPENS TO "A NEW WIDOW WITH NEW MONEY? I'LL LET MRS.MARION S.EBERLY ANSWER THAT QUESTION. SHE IS HEAD OF THE WOMEN'S DIVISION OF THE INSTITUTE OF LIFE INSURANCE. 60 EAST 42ND STREET, NEW YORK CITY. SHE SPEAKS BEFORE WOMEN'S CLUBS ALL OVER AMERICA ON THE WISDOM OF USING LIFE-INSURANCE PROCEEDS TO PURCHASE A LIFE INCOME FOR THE WIDOW INSTEAD OF GIVING HER THE PROCEEDS IN CASH. SHE TELLS OF ONE WIDOW WHO RECEIVED TWENTY THOUSANDS DOLLARS IN CASH AND LENT IT TO HER SON TO START IN THE AUTO-ACCESSORY BUSINESS FAILED, AND SHE IS DESTITUTE NOW. SHE TELLS OF ANOTHER WIDOW WHO WAS PERSUADED BY A SLICK REAL-ESTATE SALESMAN TO PUT MOST OF HER LIFE-INSURANCE MONEY IN VACANT LOST THAT WERE "SURE TO DOUBLE IN VALUE WITHIN YEAR". THERE YEARS LATER, SHE SOLD THE LOTS FOR ONE TENTH OF WHAT SHE PAID FOR THEM. SHE TELLS OF ANOTHER WIDOW WHO HAD TO APPLY TO THE CHILD WELFARE ASSOCIATION FOR THE SUPPORT OF HER CHILDREN - WITHIN TWELVE MONTHS AFTER SHE HAD BEEN LEFT FIFTEEN THOUSAND DOLLARS IN LIFE INSURANCE. A HUNDRED THOUSAND SIMILAR TRAGEDIES COULD BE TOLD.
THE AVERAGE LIFETIME OF TWENTY-FIVE THOUSAND DOLLARS LEFT IN THE HANDS OF A WOMAN IS LESS THAN SEVEN YEARS". THAT STATEMENT WAS MADE BY SYLVIA S. PORTER, FINANCIAL EDITOR OF THE NEW YORK POST, IN THE LADIES HOME JOURNAL.
YEARS AGO, THE SATURDAY EVENING POST SAID IN AN EDITORIAL: THE EASE WITH WHICH THE AVERAGE WIDOW WITHOUT BUSINESS TRAINING, AND WITH NO BANKER TO ADVICE HER, CANBE WHEEDLED INTO PUTTING HER HUSBAND'S LIFE-INSURANCE MONEY INTO WILDCAT STOCKS BY THE FIRST SLICK SALESMAN WHO APPROACHES HER - IS PROVERBIAL. ANY LAWYER OR BANKER CAN CITE A DOZEN CASES IN WHICH THE ENTIRE SAVINGS OF A THIRTY MAN'S LIFETIME. AMASSED BY YEARS OF SACRIFICE AND SELF-DENIAL, WERE SWEPT AWAY SIMPLY BECAUSE A WIDOW OR AN ORPHAN TRUSTED ONE OF THE SLICK CROOKS WHO ROB WOMEN FOR A LIVELIHOOD.
IF YOU WANT TO PROTECT YOUR WIDOW AND YOUR CHILDREN, WHY NOT TAKE A TIP FROM J.P MORGAN - ONE OF THE WISEST FINANCIEAR WHO EVER LIVED. HE LEFT MONEY IN HIS WILL TO SIXTEEN PRINCIPLE LEGATEES. TWELVE WERE WOMEN. DID HE LEAVE THESE WOMEN CASH? HE LEFT TRUST FUNDS THAT INSURED THESE WOMEN A MONTHLY INCOME FOR LIFE.
