As we come to terms with the harsh economic realities of our times, it is always good to pay heed to the wise words given to us by some of America’s most dynamic and gifted presidents that will hold us in good stead. Every year we celebrate President’s Day in February, and it would behoove us to pay closer attention to their advice.
Thomas Jefferson’s wise words
Thomas Jefferson’s invaluable advice was to live within our means. He obsessed over his finances and closely tracked his expenses but tragically died deeply in debt. He had a taste for the finer things life had to offer, such as antique paintings. However, his advice still holds true. Try not to spend more money than you have and save as much as you can to build wealth.
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George Washington’s policy of hedging his bets
Washington used to grow tobacco, which was very profitable at the time. However, he stopped growing it as it was taking a toll on the soil and instead switched to several different crops including hemp, flax, and corn that had a local demand. In this way, he was able to diversify his portfolio and offset any possible losses on one crop with the profits of the others. In addition to this, he also wrote extensively on debt and strongly advised against borrowing more to pay off old debts.
Abraham Lincoln and humble living
Abraham Lincoln lived a hard life while growing up. His father fell on hard times and lost most of his land. Lincoln is famous for admonishing his wife who refurbished the White House and far exceeded her budget. During his lifetime, he saved most of the money he made as President, which was about $25,000 a year. From Lincoln, we learn the importance of being tight-fisted and living modestly.
Jimmy Carter on how less is more
Jimmy Carter bemoaned the hedonistic excess of capitalism that seemed to plague America and the constant one-upmanship of who has the better house, car, clothes, and so on. Human beings, he said, are no longer measured by the quality of their convictions but by their material possessions. He stressed the need to go back to our roots and instead of living paycheck to paycheck, we need to cultivate a healthy habit of saving and investment.
Ulysses Grant on making prudent investments
Grant suffered from financial troubles for most of his life. He got into business with a young investor, Ferdinand Ward, who used Grant’s contacts and influence to swindle money from several high net-worth individuals in a massive Ponzi scheme. Grant himself lost all his money and was able to provide for his wife by writing his memoirs, which eventually became a bestseller. From Grant, we learn that we must make a careful assessment of any investments by studying the market closely and taking opinions from experienced people.
These are just some of the important lessons to take away and you can use these leaders’ experiences to make better choices when it comes to money.
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