The Way to Wealth By Benjamin Franklin

Benjamin Franklin’s “The Way to Wealth” is a must read for anyone going through financial difficulty.  In truth, I recommend it to everyone, regardless of your current financial situation.  I rate The Way to Wealth very highly, alongside classics like The Richest Man in Babylon and Rich Dad’s Guide to Investing. This short composition teaches the core fundamentals of wealth creation.

Father Abraham, a wise old man, shares some timeless insights into acquiring and retaining wealth, both material and emotional wealth.  He shares two key principles that will set you on the way to your own wealth, these are: Industry and Frugality.

Father Abraham warns against laziness, saying, “Sloth, like rust, consumes faster than labor wears.”  He goes on to tell the listening crowd, “The sleeping fox catches no poultry – if you would be rich, then you must constantly be productive, either by your own hand, or by employing the services of another.”

The main ingredient to productivity is using time effectively.  Time is a finite resource that must be cherished.  “But dost thou love life? Then squander not time, for that is the stuff life is made of.”  This is one of the most sobering thoughts in this passage.  It reminds you that money comes and it goes, but time goes and it goes and it just keeps on going. You can always make more money, but you can never get more time.  Jim Rohn puts it mildly when he says, “Days are expensive.”  If you spend one day recklessly, it is gone for good. You can’t get it back.  To sum up the relationship between the proper use of time and productivity, Benjamin Franklin says, “Never leave ‘til tomorrow that which can be done today.”

Being careless in your affairs ultimately costs you more than being uneducated.  Take care of your business and your business will take care of you.

Modern management fads preach delegation.  Father Abraham warns, however, that delegation does not mean neglect.  Stay in the loop about what is going on in your business or you might lose it all.  Keep your employees and colleagues accountable.  Maintain proper reporting structures, and occasionally visit the factory to see for yourself if everything is still going according to plan.

Frugality is an important component of building your wealth.  Father Abraham says, “If you would be wealthy, think of saving as well as getting.” He warns that “Fools make feasts, and wise men eat them.”  If you spend all your money on items you don’t need, you will soon have to sell the things you do need. Watch I Blew It to find out what this means.

Reckless spending leads to financial devastation.  You will soon have to borrow money from friends, family or financial institutions.  Borrowing money is costly in every possible way. It costs you money in the form of interest and related charges, and it causes you so much embarrassment that you lose your dignity. 

When you borrow money, you give the lender power over your life.  The Way to Wealth emphasizes the notion that wealth is not created by what you earn, but rather, by what you keep. 

He says, “Get what you can, and what you get, hold.”

The essence of The Way to Wealth is this:

Waste neither your time nor your money,

but make the best use of both. 

Be frugal and industrious. And then invest wisely.

What was the best piece of financial advice you have ever received?  And, what was the worst financial mistake you ever made?

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