Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Financial advice from 1953
Old 03-19-2018, 05:02 PM   #1
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Augusta
Posts: 320
Financial advice from 1953

I came across my father's memoirs on my computer today and thought the readers here would get a kick out the letter my Dad transcribed that was written to my Mother by her father (my grandfather) Apparently Mom was asking for more funds (she was away at college)

Maybe this post should be in young dreamers?

I'd like to add that my grandparents, tho very comfortable financially, always had what would almost be considered a "tiny house" these days. They would custom build them. Very simple, lots of builtins etc. Their vacation house was one large room with murphy beds, a kitchenette and a deep water dock.

"Feb 24, 1953
This is to let you know that your marked improvement in grades has not gone by unnoticed - the improvement in your own feelings as a result is also evident - and very gratifying.
You'd be disappointed if I failed to bring in the plea for more and better yet and I would point out even Professor Einstein has not reached the Laurel resting point.
I have a theory that the Satisfaction gained from acquiring knowledge increases as the Square of Effort ex-pended (S = KE2) and assure you that you need not fear a point of diminishing returns.
Your political achievements are also noted and we are Very Proud.
Your financial difficulties are downright commonplace and I can find no single feature that is distinctive or engaging. Your managerial shortcomings are no doubt hereditary. In 43 years I have not been able to solve most of these problems.
Simply stated - Financial Solvency (and the very important suppression of mental anguish which it brings) is achieved and maintained by 1, increasing income above the level of expenditures or 2, reducing expenditures to a point lower than income or 3, a combination of these Basic Steps. Let me point out here that one of the greatest pitfalls for most is that many expenditures are related to time and go on relentlessly even tho' actual disbursement of funds is a periodic act (this is covered in your study of Accrual Accounting).
Good accounting (and good management) sets up a reserve to cover such items and contributes to it in a definite and orderly manner so that as liability increases, there is a corresponding increase in Assets and Balance is preserved. You will rarely find good management on a "Cash Basis".
Now let us divide Steps 1, 2 & 3 into 2 classifications - 1, those that we can do nothing about and 2, those which we can do something about.
I would say that at the moment you can do nothing about Step #1 (altho there is nothing wrong with trying and I'll give you an "A" for effort). Step #2 has definite possibili-ties and should be carefully examined. Step 3 need be considered only when positive action can be taken on Both 1 & 2.
I will confirm that my approach to this problem has been almost entirely thru' Step 1. This method has one substantial disadvantage. Control of income is difficult for most. As it is pushed higher a greater effort is required and less time is left to pursuit of life's happiness. (We find here many victims who have mistaken the pursuit of income for the pursuit of Happiness)
It is my opinion also that as incomes are carried higher the degree of stability is reduced and the margin of Safety over expenditure is therefore less certain and the danger of disruptive balance increases. - Furthermore we find, almost without exception, that the Human Animal is inclined to let expenditures increase with income. The net result being that increasing of income often fails to bring about solvency.
On the other hand, Control of Expenditure can be relatively stable and discipline, rather than ingenuity, imagination, drive or the restless enterprising spirit - is the required human quality.
Complete discipline is probably impossible and, I dare say, undesirable. But a liberal sprinkling of it is Very Effective and Enhances the opportunity of those who seek success. I highly recommend that you promote and encourage the growth of this prized quality."
__________________

Yarnstormer is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-19-2018, 05:12 PM   #2
Full time employment: Posting here.
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Brighton
Posts: 792
Wow, What a great letter and thank you for sharing it!!

Most young people would be surprised at what the grandparents know.

I always said that my father's advice was more true every year I got older.

He passed away in 2014, but I still find things he told me to ring true as I age.
__________________

__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 03-19-2018, 05:16 PM   #3
Moderator
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 11,688
That was very well done. Kudos to your grandfather.

A more concise version a bit over 100 years previously in David Copperfield:
Quote:
Annual income twenty pounds, annual expenditure nineteen six, result happiness.
Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery
braumeister is offline   Reply With Quote
Old 03-19-2018, 05:17 PM   #4
Full time employment: Posting here.
 
Join Date: Oct 2014
Posts: 569
very interesting read. Thanks for sharing Yarnstormer.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. New target 2020.-

-"Blow that dough"-Robbie

" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
Bigdawg is offline   Reply With Quote
Old 03-19-2018, 05:59 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,350
Well done, grandfather!
brucethebroker is offline   Reply With Quote
Old 03-19-2018, 06:21 PM   #6
Recycles dryer sheets
lemming's Avatar
 
Join Date: May 2008
Posts: 442
never mind.. Cranky
__________________
The experience I gained at age 21 would be useful if I were ever 21 again. But I'm 71 and new at it and keep making age 71 mistakes."
lemming is offline   Reply With Quote
Old 03-19-2018, 06:54 PM   #7
Thinks s/he gets paid by the post
gcgang's Avatar
 
Join Date: Sep 2012
Posts: 1,130
Great letter!

Did he give her the money?
__________________
In theory, there's no difference between theory and practice. In practice, there is. YB
gcgang is offline   Reply With Quote
Old 03-19-2018, 07:17 PM   #8
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Augusta
Posts: 320
Quote:
Originally Posted by gcgang View Post
Great letter!

Did he give her the money?


Oh I’m sure he did. There is quite the volley of emails between the two and always a reference to her spending. Very amusing.
Yarnstormer is offline   Reply With Quote
Old 03-19-2018, 07:40 PM   #9
Full time employment: Posting here.
Luck_Club's Avatar
 
Join Date: Dec 2016
Posts: 595
Quote:
Originally Posted by Yarnstormer View Post
It is my opinion also that as incomes are carried higher the degree of stability is reduced and the margin of Safety over expenditure is therefore less certain and the danger of disruptive balance increases. "
This rings true in spades. When I experienced a major setback, I had been living on 22% of my income. Had I been living on half, we would have had to sell our house.
__________________
2017 dry run spending: 2018 accelerate debt elimination: 2019 RV procurement & 1MY begins: 6/19 DW last month went early: 9/19 start cross country loop: 1/20 first reinforcements arrive. 6/20 sell business or shut doors. 9/20 begin globe trot: 4/26 401K reinforcement.
Luck_Club is offline   Reply With Quote
Old 03-19-2018, 07:50 PM   #10
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 3,682
Quote:
Originally Posted by Yarnstormer View Post
Oh I’m sure he did. There is quite the volley of emails between the two and always a reference to her spending. Very amusing.
email in 1953? Over teletype? Impressive!

Seriously, I loved this. My dad was a great writer. Collectively, we've lost so much of our writing. But I do know some of my friends are mean texters. Gotta keep up with the kids.
JoeWras is online now   Reply With Quote
Old 03-19-2018, 08:14 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
Quote:
Originally Posted by Yarnstormer View Post
Oh I’m sure he did. There is quite the volley of emails between the two and always a reference to her spending. Very amusing.
They had email in 1953?
Meadbh is offline   Reply With Quote
Old 03-19-2018, 08:31 PM   #12
Recycles dryer sheets
 
Join Date: Apr 2016
Location: Augusta
Posts: 320
Quote:
Originally Posted by Meadbh View Post
They had email in 1953?


Oh lol! No I meant letters or course. I think the art of letter writing has really suffered due to emails.

Tho, I remember going to my grandfather’s business where they had an entire room dedicated to “the computer” - punched cards and all. It was like something out of a science fiction movie.
Yarnstormer is offline   Reply With Quote
Old 03-19-2018, 08:57 PM   #13
Full time employment: Posting here.
 
Join Date: Jun 2017
Location: Western NC
Posts: 919
Quote:
Originally Posted by Yarnstormer View Post
I'd like to add that my grandparents, tho very comfortable financially, always had what would almost be considered a "tiny house" these days. They would custom build them. Very simple, lots of builtins etc. Their vacation house was one large room with Murphy beds, a kitchenette, and a deep water dock.
reminds me of this article on Heinlein's 1951 home, "A House to Make Life Easy"
ncbill is offline   Reply With Quote
Old 03-19-2018, 10:37 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 2,387
I love this letter! So true.
Scuba is offline   Reply With Quote
Grandpa Kenobi
Old 03-20-2018, 06:18 AM   #15
Full time employment: Posting here.
Mdlerth's Avatar
 
Join Date: Oct 2016
Location: The Shire
Posts: 805
Grandpa Kenobi

An elegant letter, from a more civilized age.
__________________
Paying it forward is the best investment.
Mdlerth is offline   Reply With Quote
Old 03-20-2018, 07:01 AM   #16
Recycles dryer sheets
 
Join Date: May 2011
Posts: 301
A great essay. Few people have such a way with words today.
sanfanciscotreat is offline   Reply With Quote
Old 03-20-2018, 08:27 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,468
That was great! Grandpa was a brilliant and funny guy.
mystang52 is online now   Reply With Quote
Old 03-20-2018, 10:19 AM   #18
Thinks s/he gets paid by the post
GravitySucks's Avatar
 
Join Date: Feb 2014
Location: Syracuse
Posts: 1,698
Thank you for sharing.
__________________
“No, not rich. I am a poor man with money, which is not the same thing"
GravitySucks is online now   Reply With Quote
Old 03-20-2018, 10:35 AM   #19
Full time employment: Posting here.
Sojourner's Avatar
 
Join Date: Jan 2012
Posts: 884
Quote:
Originally Posted by Mdlerth View Post
An elegant letter, from a more civilized age.
Quote:
Originally Posted by sanfanciscotreat View Post
A great essay. Few people have such a way with words today.
+1

It's quite sad and dispiriting to see this stark reminder of how the writing skills of today compare so poorly to those of just a few generations ago.
__________________

Sojourner is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Advice, Advice and More Advice flyfishnevada Life after FIRE 18 06-26-2010 06:44 PM
Financial Myth (i stole this from another financial forum). please, don't sue me. Enuff2Eat FIRE and Money 20 08-19-2007 04:26 PM
Do your family members listen to your financial advice? JustCurious FIRE and Money 63 02-08-2007 11:22 PM
best financial advice websites newyorklady FIRE and Money 17 02-04-2007 05:48 PM
Poll: Paying for financial advice LOL! FIRE and Money 10 06-26-2006 02:54 PM

» Quick Links

 
All times are GMT -6. The time now is 10:08 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.