I was blessed to have two Dads.  And they each impacted my life in different ways.  Both of my Dads were Engineers and they were both very wise with their finances.  They were good fathers and they were deeply committed to their children.  But, their goals, thoughts and personalities couldn’t have been any more different.  These differences gave me two valuable perspectives.

George Frohlich III 

George Frohlich

My Dad George is gone now, but he left quite a legacy.  He raised 11 kids from two different families and his proudest accomplishment was that all of his children turned out well.  He didn’t measure himself by his job titles, assets or net worth.  He measured his value by what he could pass onto others.  When he left this world, he didn’t have to worry about any of his children.  He had shown us how to take care of ourselves and our own families.

My Dad encouraged me to invest in my early ’20s.  He invested in mutual funds and he talked me into buying newsletters and reading books.  He taught me how to read a prospectus and how to evaluate the performance and expenses.  He could sit around for hours talking about the markets and he loved to watch the financial news on TV.  Since he lived in a foreign country, there weren’t many people he could talk with about investments and finances.  So, when he came to visit, he was literally bursting at the seams with strategies and information.  He was very proud of the way I invested, especially since I had very little money left over from my meager income.

One of my Dad’s goals was to retire at 45 and sail around the world.  He always hated the “Rat Race” and he dreamed of a peaceful life with less stress and more time for thought and reflection.  Because of his many children, a divorce and the financial support he provided for his folks, he had to put his dream on hold.  He did retire at 55 and he lived out his remaining years on a beautiful island surrounded by people he loved.

I remember as a young man thinking he was nuts to want to retire so young.  I was excited about my career and I couldn’t understand why Dad wanted to leave the workplace.  But, now that I have reached that age, I understand exactly what his dream was about.  He simply wanted regain control over his life.  He wanted the freedom to decide whether to read the newspaper or drive into town.  He wanted to spend all day cooking a special meal for his kids and to watch them walk home from school.  He wanted to be the master of his time and he accomplished this goal.

Edgar Furse

Ed Furse

My step-dad Ed and I are very close.  At family parties, we can usually be found hanging around talking.  Since Ed came along later in my life, he is like a mentor to me.  He is exceedingly wise and always thoughtful.  We have a lot in common, since we both worked in the computer industry from its infancy.  We can talk for hours on technical subjects that would bore others within minutes.

Ed’s wisdom flows in a quiet and measured way.  Most of the things I learned were from carefully listening to his stories and comments.  He doesn’t proclaim his knowledge or offer unsolicited advice.  But, you could ask him a variety of questions and he would have a well-reasoned answer for all of them.  He also has a different perspective from most people I know, because of his international upbringing.  He is more open-minded and less judgmental than others.  So, his advice is subtle and indirect.

One of the most valuable things I learned from Ed was about his handling of mortgages.  He told me that once his personal exemption exceeded his interest deduction, there was no reason to have a mortgage.  So, it was time to pay it off.  Another trick I mimicked with my own mortgage is increasing the payment as time goes by.  He explained that after some years have passed, your income will have risen, but your mortgage will be the same.  So, it’s very easy to increase your payment and shorten the term.  This advice will cut 9-10 years off my mortgage and I am thrilled about that.

Ed’s goal was to travel in retirement.  And, he takes at least one trip per month, with my Mom.  Sometimes, they are small trips, like riding a train up the coast.  Sometimes, they are big trips, like visiting his family in Peru.  He is enjoying his retirement completely, without any worries or regrets.  Anyone who has worked so hard and given so much deserves no less.

The Bottom Line

The bottom line is, if you have one good parent, you received an invaluable gift.  If you had four wonderful parents, like me, you are incredibly blessed.  Take advantage of the things you learn, from those who have already accomplished what you strive for.  Then, pass this wisdom on to your children, who look to you for guidance.

“He didn’t tell me how to live; he lived, and let me watch him do it.”

Clarence Budington Kelland – American Author

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Most people believe you have to “strike it rich” to become a millionaire.  They think it is all based on income.  And, for some millionaires that is true.  But, the vast majority of millionaires didn’t get rich off of a very high income or a sudden windfall.  Most millionaires became wealthy by earning and saving over a long period of time.  I know that sounds boring, but it’s true.

Why Wealth Needs a Purpose

Photo by Wonderlane

What if you want to become a millionaire now, so you can live the good life?

You probably won’t stay rich for very long, because your wealth doesn’t have a purpose, except to be consumed.  That’s what happens to athletes, musicians and lottery winners.  They are often bankrupt within a very short time after becoming wealthy.  The only thing worse than starting out poor is ending up poor.

In order to preserve that wealth, it must have a purpose.  And, that purpose must be more important than the wants and needs of daily life.  That purpose must be stronger than the lure of gold or the jealous look of a neighbor.  Otherwise, your wealth will quickly disappear, taking all of your hopes and dreams with it.

The Value of Life

I’m a little bit emotional and reflective today, because I am heading to the funeral of one of my coworkers.  She is the one I wrote about in my last post, who died of cancer.  The point I want to make is that life is valuable.  And, it’s fleeting.  A good life should have purpose.  It should have direction.  It should benefit all who come in contact with it.  A life without these things is hollow and superficial.  The same can be said for money.

My Purpose for Wealth

My entire life’s purpose right now is to achieve financial freedom.  Every day I work, every paycheck I collect and every dollar I invest is a step closer to my goal.  My dream is to wake up in the morning and be the master of my day.  I want to eat breakfast with my wife and decide if I want to go to work or to go on an adventure.  I want to see places I have never seen and to do things I have never done.  I want a lot more beautiful moments and a lot less stress.  And, I don’t want to wait until I am 67 years old to get there.  I have worked very hard for the past 30 years and I’m starting to believe I deserve it.  Wealth is the vehicle that will make this possible.

I’m still about ten years away from living my dream.  But, it’s getting close enough that I can start to see it.  One thing that brought my dream even closer was in reevaluating the concept of retirement.  I had always thought I would work until I was older and then retire.  Instead, I am beginning to realize that it makes more sense to semi-retire at an earlier age.  This will allow me to keep busy and creative, but retain the flexibility to enjoy my life.

What’s your Purpose?

OK, now it’s your turn to dream.  What are you going to do with your gift of life and the prospect of wealth?  How are you going to change the world and make it better for others?  How are you going to overcome obstacles and reach all of your goals?  Life is short and the clock is ticking.

What’s your purpose for wealth?

“Wealth is the ability to fully experience life.”

Henry David Thoreau – American Author

Recommended Reading

Many of the concepts I learned for accumulating wealth came from the book The Richest Man in Babylon.  Most of what I learned about the wealthy came from the book The Millionaire Next Door.  The ability to visualize and enjoy my dreams came from the book The Type Z Guide to Success with Ease.  If you haven’t read these three books, I highly recommend them.

This post was featured on the Carnival of Personal Finance. If you aren’t familiar with the Carnival of Personal Finance, it’s the premiere carnival of its kind. If you want to read informative articles from knowledgeable bloggers, this is the place.

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Photo by Don Hankins

One thing I have never posted on my blog before is that I was defrauded out of a large sum of money.  It’s kind of embarrassing to admit this and I definitely should have known better.  Here I am, handing out financial advice to others and yet I was taken in myself by a con artist.

However, I have decided to share my story with everyone, in the hope that others may avoid a similar fate.  And, I have learned some very valuable lessons that I feel obligated to pass on. 

There is good news to my story and some closure in my case.  Many victims aren’t so lucky and they never recover their money or obtain justice from the courts.

Last week, after two years of lies, confusion and disappointment, I received an email from the District Attorney’s Office.  The perpetrator plead guilty to one felony count and as part of his plea agreement, he will have to pay me full restitution.  He will be sentenced near the end of this month.

How it Happened

Back in 2007, we decided to take a vacation to visit my wife’s family.  My wife is from a small island in Micronesia and the plane tickets are incredibly expensive.  We contacted Continental, who has a monopoly on air travel to Micronesia, and were quoted a price of $10,000 for four tickets.  This was way out of our budget, so we talked to some of our relatives who had bought discounted tickets.  They recommended a travel agent who was very knowledgeable about travel to the islands and he recommended ways to reduce the cost of the tickets by flying on certain days.  He provided a quote of  $6,756 for the four tickets and we purchased them.

My wife was leaving two weeks earlier than the rest of the family, so we drove her to the airport.  We arrived at LAX, after a two-hour drive, and found out the e-ticket reservation number was invalid.   The tickets had been reserved but never paid for by the travel agent.  When we returned from the airport very angry, the travel agent wouldn’t answer his phone.  After some back-and-forth messages and an apology from the travel agent, he provided a one-way ticket for my wife.  We never received the rest of our tickets and I had to buy another one-way ticket to fly my wife back home.  So, I was out more than $6,000 and our family vacation was ruined.

Dealing with It Emotionally

It’s easy to get depressed when you are the victim of a crime.  And, it’s easy to blame yourself, even though you are not the criminal.  It’s hard to explain to others how the fraud occurred; when you know deep-down you may have been able to avoid it.  The hardest part for me was accepting some responsibility for my own missteps, while keeping the blame focused squarely on the person who committed the crime.

Another frustrating situation was everyone asking, “What is going on with your case?”  They were almost as upset as I was and they wanted to know that justice would be served.  The reason this was so frustrating is because I had no idea what was going on with my case and I wouldn’t find out for years.  I began to doubt there would ever be a resolution and I wished people would just stop asking about it.  Even though I knew others were only trying to help, it stirred up a helpless feeling I wanted to avoid.

After a while, walking away from the problem would have been the easiest thing for me to do.  It would have been a big relief to put it all behind me.  One thing that kept me going was the thought of other victims, past, present and future.  I don’t know their names or their stories.  But, I knew they existed from talking to the DA and I knew exactly how they were feeling.

Dealing with It Legally

Disclaimer: I am not an attorney and this post should not be construed as legal advice.  This post is for entertainment purposes, based on my experience in my specific case.  If you need legal advice, you should contact an attorney.

I Researched the Law - When it first became obvious that I wasn’t going to get my airline tickets or a refund in a timely manner, I looked up the specific laws governing travel agencies.  I learned it is considered a felony for a travel agent to misappropriate money paid for airline tickets.  And, if the airline tickets cannot be furnished, a full refund must be provided within 48 hours.   It was very important that I understood the law before I presented my demand email to the travel agent or filed a complaint with the authorities.  Otherwise, it may have reduced my chances of recovering my money or obtaining a conviction.

I Stated my Demands - Before I could sue in court or file a complaint for fraud, I first needed to demand a refund in a definitive manner that couldn’t be disputed in court.  In my case, I replied to his email saying he couldn’t provide the tickets and I was lucky that he replied back to my demand email, proving he had received it.  Otherwise, I would have sent a certified letter, with a return receipt.  In my demand email, I included all of the following items:

• I referenced the specific laws that had been broken.
• I demanded a complete refund and included the amount. 
• I demanded a refund within 48 hours and included the date.
• I stated my next action would be to file a fraud complaint.
• I referenced the specific regulating authority. (DA’s office)

I Filed a Fraud Complaint – The travel agent’s response to my demand email didn’t comply with the law.  Basically, he stated that he didn’t have my money and he would try to pay me back by the end of the year.  So, after the 48 hours had elapsed, I filed a fraud complaint with the DA’s office.  The DA had an online complaint form, which made filing a snap.  But, that was only the beginning of the work that was required to initiate my case.

I Got it in Writing – Long before my demand email, I realized legal action was likely.  So, I stopped using the phone and switched to email.  I also let the phone ring through and caught the messages on voice mail.  Since my company had a Cisco phone system, the messages were forwarded as a WAV file attached to an email.  When I provided my evidence to the DA, I forwarded these voice messages.  They were time-stamped recordings in his own words, that couldn’t be twisted around or disputed.  Between the email and voice messages, he incriminated himself completely and I captured it.

I Tracked Everything - I created a timeline in Excel that detailed every contact that occurred.  And, I printed out every email, logged every phone call and obtained a copy of my cancelled check.  Then, I sorted all of the printed evidence to match the timeline.  The packet I sent to the DA’s office was almost an inch thick.  My caseworker told me we had the strongest case of all the victims.  This empowered me to believe I could make a difference.

I Followed Up Regularly – Anyone who has ever dealt with the court system knows it takes forever.  I was warned by the DA’s office that it would take a long time to resolve this case.  And, I followed-up every month for almost a year.  One day, I got a voice message that my case worker had retired.  I honestly just gave up hope at that point.  But, my case was still working its way through the system.  I was very surprised last week, when I learned my case was settled.

Final Thoughts

I was lucky the fraud occurred in the U.S., where reasonable laws and enforcement exist.  I was very unlucky (and foolish) because I didn’t use a credit card for this purchase.    If I had, I could have easily reversed the charges and recovered my money.  I also should have checked on his status as a travel agent.  I later learned that his registration hadn’t been renewed for many years.  If he had been a registered travel agent at the time of my purchase, there was a recovery fund that may have provided a refund.

Seasoned fraudsters try to act like your friend and take advantage of your good nature.  They may act like they are a victim of bad luck and they just don’t have your money.  Or, they may try to intimidate you and act like it is your fault.  In my case, the travel agent hinted that I had to play by his rules in order to get my money back.  In all cases, you must realize the fraud was planned ahead of time and these are simply techniques to avoid prosecution.  Never doubt yourself or fall prey to these common tricks.  Otherwise, you will become the victim, instead of the plaintiff.

The Bottom Line

The bottom line is that your best recourse against fraud is to avoid it entirely.  Before handing over your hard-earned money on a large purchase, make sure you can obtain a refund if something goes wrong.  If that doesn’t happen, you must become diligent and aggressive in pursuing the fraudster.  No one else will care about your case, unless you demonstrate your own willingness to spin the wheels of justice.

Recommended Reading

This post was featured on the Carnival of Personal Finance. If you aren’t familiar with the Carnival of Personal Finance, it’s the premiere carnival of its kind. If you want to read informative articles from knowledgeable bloggers, this is the place.

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Making Sense of it All

Photo by Antigone78

Days like today deliver a powerful message to employees.  We are vulnerable to market conditions, company goals and whims of those who manage us.  It’s a helpless feeling to know as an employee you have no control over your next paycheck.  Yet, it is a valuable lesson for those who have become too dependent on their employer.  We are each responsible for our own futures.  And, it is foolish to believe someone else is obligated to take care of us.  So, we forge ahead, knowing there will be no pensions or gold watches waiting for us.

After 25 years of corporate life, the layoffs are something I never get used to.  It’s like attending a funeral as a small child.  You understand why someone has been lost.  But, that still doesn’t ease the pain you feel when they are gone.  It is especially personal for me, because I have to pack up their computers and forward their phones to the receptionist.

Often, I feel like the grim reaper.  I know when someone’s number is coming up and I have to smile and make polite conversation ahead of the layoff meeting.  I never intend to get used to this charade.  And, I never intend to become callous to an event that deeply affects people’s lives.  Yet, I will execute my duties, as I have for decades.  And, I will think of my fallen comrades.

Lessons from the Trenches

Be All that you can Be – Do whatever is required of you, not just the things listed in your job description.  Volunteer for the ugly little projects that no one else will touch.  Having worked at two start-ups and two other companies that have shut down, I know a lot about reductions in force.  And, the people who are let go first are usually difficult to work with, inflexible with their job duties or specialists in a unique field.  Employees who become valuable to a down-sizing company are able to wear many hats, they pitch in to help out and they make problems disappear.

Never Count your Chickens - Your income is never assured and you need to plan for its loss.  Having been laid-off twice, I know how important it is to keep the payments low and to have money stashed away.  The last thing anyone needs is to lose their cars or their house due to a layoff.  Searching for a job is stressful enough, without having to deal with crushing money problems.  A layoff is often sudden and unexpected.  So, don’t be caught by surprise.  Be prepared financially, before the pink slip arrives.

Develop your Professional Network -If you are like most job seekers, your next job opportunity will come from someone you know.  During troubled times, a friend, a customer or a coworker can help get your foot in the door.  It goes without saying that if you have treated these people in a professional manner, they will be happy to act as a reference or to introduce you to someone who is hiring.  Join LinkedIn or Facebook and keep in touch with the people you have worked with.

The Bottom Line

The bottom line is that companies will do what is best for the company and the shareholders.  And, that isn’t always what is best for the employees.  You need to do what is best for you and your family.  And, the best thing in my opinion is to become prepared financially.

“Opportunity is missed by most because it is dressed in overalls and looks like work.”

Thomas Edison – American Inventor

Recommended Reading

This post was featured on the Carnival of Personal Finance. If you aren’t familiar with the Carnival of Personal Finance, it’s the premiere carnival of its kind. If you want to read informative articles from knowledgeable bloggers, this is the place.

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Why I Changed Domains

Photo by Popofatticus

When I first registered BretFrohlich.com, it was only because I wasn’t able to find a suitable domain name for my personal finance blog.  I’ve never had any desire to become famous or to make myself into a brand.  In fact, I considered blogging anonymously, to make sure it didn’t impact my career.  But, I quickly decided against anonymity, because I just wanted to be myself.  I wanted to be comfortable while explaining finances and to speak to readers on a more personal level.  If there is one thing I have learned over the years, it’s that finances are personal.  And, I never want to lose that element from my blog.

Unfortunately, most of the good domain names were taken by squatters.  In fact, the domain name I really wanted was owned by a speculator who wanted $75,000 for the rights.  Since I didn’t launch this blog to make a ton of money, I didn’t see any good reason to pay thousands of dollars for a domain.  I knew one day I would find my own domain name that would reflect my true purpose for this blog.  I just didn’t expect it to take a couple of years.

Finding Hope to Prosper

One day, while I was gathering ideas for a post, I started to think about my ultimate financial goal.  And, I realized I had a very simple goal of doing well with my finances.  I didn’t need to amass a huge fortune or take over Wall Street.  And, I didn’t care about owning anything fancy or expensive.  I just wanted to live a good life, without my personal decisions being limited by my finances.  I wanted to be happy and to share with others.  In other words, I Hoped to Prosper.

The Einstein Logo

One element I kept from my old blog is the Einstein logo.  Although personal finances are much easier than physics, our financial futures depend on being smart with our money.  Einstein learned a lot about compound interest and he shared this knowledge in one of my favorite quotes.  A little wisdom from a true genius is a valuable thing.  And, every time I see Einstein staring at me from the corner of my blog, it reminds me to be wise with my money.  I hope it has the same effect on all of my readers.

The Bottom Line

The bottom line is that I have worked hard for years on my blog, without any expectation of a return.  And, I have enjoyed creating the posts and interacting with the readers.  What I didn’t expect was to meet so many incredible people in the blogging community.  The learning experience has been well worth the effort.

“The most powerful force in the universe is compound interest”

Albert Einstein – Father of Modern Physics

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Lessons in Life

This post was inspired by my son Aaron. He is a typical 20-year old who is trying to find his place in this world and to make a living in tough economic times.

His perspective on life has taught me as much about being a parent as I have taught him about being an adult.

This hasn’t been an easy process for either of us. But, it seems to be working. So, I will share some of what I have learned with you.

Conflict of the Generations

A couple of days ago, I was visiting with my neighbor. And, I asked him if he missed his two daughters who had gone away to college. His answer surprised me. He said, “No, it was a perfect time for them to go. They have had enough of us and we have had enough of them.” He loves his daughters and is very proud of them. And, they are both really great kids. Of course he misses them. But, he is happy the house is peaceful and quiet. He no longer has to argue with his kids and a great weight of responsibility has been lifted from his shoulders.

Children’s Side of the Conflict

Conflict -Young adults believe they are entitled to all of the rights, freedom and privileges of other adults. And they resent being told what to do and when they can do it. They are trying to express themselves freely and live their lives as adults. But, their parents still treat them like children and are constantly nagging them.

Considerations – What kids may not realize is they haven’t yet earned the rights or freedom of an adult. If they are still dependent on their parents, they still have to live by their parent’s rules. And, their parents are still responsible for them in many of ways, even though they have turned 18. Also, parents worry about them whenever they are out late or engaged in dangerous behavior.

Solution -If kids believe parents are interfering with their life, they should move out and pay their own way. The rewards and experience of living on their own will greatly outweigh the tight finances. And, they will be able to make their own decisions. If they are being supported through college, they need to respect and appreciate the sacrifice their parents are making. Most important, they will need to think and act like an adult, before others will begin to treat them as an adult.

Parent’s Side of the Conflict

Conflict – Parents may see their adult children as lazy and irresponsible. Their kids may not contribute to the family financially or by helping out around the house. They may leave messes everywhere and argue constantly. Parents may have to nag them frequently to do the simplest things. Kids may feel entitled to cars, cell phones, computers and a college education, which parents had to earn for themselves.

Considerations – What parents may not realize is their children haven’t yet learned about finances or how it affects their standing in society. And, society is now more protective, which places a higher burden on parents and less accountability from children. Other kids are receiving cars, computers and cell phones, which is why they feel entitled.

Solution – Parents need to stop subsidizing an idle lifestyle and insist their children contribute whatever they can. Parents need to teach their children about finances, even if they aren’t shining examples. Parents need to explain how much money it costs to live and why kids need to choose a career that will support them and their future family. Most important, parents need to prepare their children to become financially and emotionally independent.

The Game of Life

I remember playing a board game called Life when I was a kid. As I moved around the board and landed on squares, I was able to graduate college, get a job, get married and have children. At age 10, I didn’t realize the significance of this game. At age 45, I understand it completely. Unfortunately, accomplishing these goals in real life is much more difficult. So, planning and execution are critical.

How I Played the Game

Final Score - My goals that were planned well and executed well turned out well. Goals that weren’t planned well caused me a lot of financial hardship. Goals that weren’t executed well cost me dearly.

Future Considerations

The future for young adults in America is more uncertain than at any time I can remember. Your parents have lived through recessions and tough economic times before. Young people may not realize this, but the economy, housing and the stock market move in cycles. So, they have crashed in the past and they will crash in the future. This is natural and should be expected. In fact, you should prepare for it. What is different this time are some of the new problems in America that your parents didn’t have. Here are the new issues you will face:

Irresponsible Government – Never has the burden of our Government looked so ominous. The corruption, bickering and reckless spending has put America in a very bad position. Younger generations may be facing a future where America is not the leader of the free world.  You may face higher inflation, taxes, currency devaluation, unemployment and failing infrastructure, courtesy of the disaster that is our Government.

Income Disparity – Everyone knows the rich are getting richer and the rest are getting poorer. The working class is disappearing, along with the jobs that used to support them.  There are many reasons for this including greed, corruption, globalization and our transition to a knowledge economy.  The net effect is there won’t be many good jobs for the uneducated.  So, unless you can live on $9 per hour from a McJob, you better plan on going to college or starting a business.

Aging Population – Because of the demographics of the Baby Boomers and because fewer children are being born, you will be saddled with an incredible burden from the aging population.  This problem is already occurring in Europe, Asia and other parts of the world.  This burden may become overwhelming, considering our Government’s mishandling of Social Security and Medicare.  You may have to personally take care of your loved ones in the final days of their lives.

The Bottom Line

The bottom line is that you will decide how to run your life and accomplish your goals.  And, you will have to live with the results from your efforts.  And one day, if you are very lucky, you will have to pass your experience onto the next generation.

“Every generation needs a new revolution.”

Thomas Jefferson – Founding Father of America

Recommended Reading

This post was featured on the Carnival of Personal Finance. If you aren’t familiar with the Carnival of Personal Finance, it’s the premiere carnival of its kind. If you want to read informative articles from knowledgeable bloggers, this is the place.

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Happy Mother’s Day

First, I would like to wish every Mom a Happy Mother’s Day and I hope your day is truly special.  Moms have the most important job in the world and they deserve some recognition for everything they do.

Our Mother’s Day Tradition

Mom doesn’t allow gifts on Mother’s Day.  She only wants her children and grandchildren to be at her house for dinner.  So, I will show up on Sunday with my card, my family and a big hug.  My brothers and sisters will all be there and the kids will hang out together.  I’ve never missed a Mother’s Day in my life.

In the Beginning

When my parents were still together, Mom took care of the finances.  She was magical in her ability to make ends meet.  She could feed a family of seven with a single chicken and a couple of potatoes.  My parents sent five kids to Catholic school and supported us on a single income.  It still amazes me to this day.

Mom went to work after we were bigger and she worked at Sears for seven years.  But, it was her second job at First Trust Bank, where she really started to hone her financial skills.  Although the pay was low, the experience was invaluable to her.  I can still remember the glimmer in her eyes when we talked about investments.

The Middle Ages

After my parents divorced things got tougher.  Mom had to keep the whole house running by herself.  Dad’s child support helped a lot, but the weight of responsibility fell squarely on Mom.  She never buckled under this pressure.  She always had that confident smile that let us know everything would work out.

Mom took care of the house, raised five kids, worked a full time job and went to night school.  After 11 years of college, she graduated with honors with a business degree.  The jobs that were available to her at the time were mostly secretarial.  So, she started her own tax and bookkeeping business, which she sold when she retired.

The Later Years

Mom finally started to pull ahead financially after we all started moving out.  Without the drain of kids on her finances, she was able to take better care of herself.  She paid off her house and then acquired a rental property, which provides income in her retirement.  She lives a comfortable life with her husband and they travel a lot.

Despite earning a modest income for her entire working life, she accomplished so much through sound financial planning.  And she has shared generously with others in so many ways.  She started college funds for her grandchildren and gives them each a savings bond every Christmas.  She sends them a quarterly statement, to encourage them to save and invest.  Her example has put us all on a similar path.

What I Learned about Finances from my Mom

• No matter how much you make, you should always save some.
• Spend the time to choose good investments and it will pay off.
• Real estate can be a great investment, when purchased wisely.
• A college education is an investment in your future income.
• Starting a business can put you in control of your own career.
• Teaching your kids about finances is your duty as a parent.

What I Learned about Life from my Mom

• Hard work always pays off, but it often takes time.
• The best way to influence others is to lead by example.
• Strength is a silent quality that shows in your actions.
• Wisdom comes from experience and you never stop learning.
• Compassion for others is a gift that will return to you.

The Bottom Line

There is no amount of money that could repay the debt of gratitude that I owe to my Mom.  I’m certain she feels a great reward just to see me becoming successful on my own.  Yet, I feel compelled to share the wisdom I received from her.  So, you are now the beneficiary of my mother’s wealth of experience.

“All that I am or ever hope to be, I owe to my angel Mother.”

Abraham Lincoln – 16th President of the United States

Recommended Reading

This post was featured on the Carnival of Personal Finance. There are lots of great articles from many of the best personal fianance bloggers. Check it out.

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The Paradox of Working Life

Hard work has served me well for the past 25 years and I’m thankful for the many paychecks, the insurance and the benefits.  I am also very thankful for all of the talented people who have helped me throughout my career.  I am thankful for the many experiences (even the painful ones) that have made me a smarter, stronger and more resourceful person.  And, I am very thankful for all of the wonderful people who have touched my life, in the workplace.

The paradox for me is the illusion of job security.  Throughout the course of my career, I have noticed something develop; Employers are demanding an ever-increasing commitment from their employees, and yet they are providing an ever-decreasing commitment in return.  So, while Americans routinely work 50+ hours per week and are the most productive employees in the world, they are now more likely to be laid-off, downsized, outsourced, replaced by people off-shore or even fired for dubious cause. 

Implications for the Future

I don’t consider this positive for the future of our nation.  I don’t think it “keeps employees on their toes” nor do I think it helps American corporations to remain competitive.  I think it’s mostly greed and a lack of compassion for working men and women.  If companies treated their employees the same as their CEOs, I might be convinced otherwise. 

The most important implication is the hope of a brighter future.  I don’t intend to work for 50 years, just to retire on 40% of my working income and hope Social Security remains solvent.  We all deserve a better fate and only we can ensure prosperity for our futures.  Counting on your employer or your Government for your future, is a promise of disappointment.  The only thing retirees can count on for certain are that pensions will be looted, retirement benefits will be cut and Social Security won’t keep pace with the cost of living.

Living the Dream

I long for the day when I can wake up in the morning and be the master of my destiny.  When I can schedule work around my life instead of scheduling my life around work.  When I can think about helping others, instead of thinking about bills and paydays.  When I can walk with the confidence that I am dependent on no one, except for myself.  When I can shake a person’s hand, expecting only friendship and good will.  Then, I will be living my dream.

What’s Your Dream?

Martin Luther King – Recited from a Spiritual

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