If you want to protect your widow and your children, why not take a tip from J. P. Morgan-one of the wisest financiers who ever lived. He left money in his will to sixteen principal legatees. Twelve were women. Did he leave these women cash? No. He left trust funds that ensured these women a monthly income for life.
Rule No. 8: Teach your children a responsible attitude toward money.
I shall never forget an idea I once read in Your Life magazine. The author, Stella Weston Turtle, described how she was teaching her little girl a sense of responsibility about money. She got an extra cheque-book from the bank and gave it to her nine-year-old daughter. When the daughter was given her weekly allowance, she “deposited” the money with her mother, who served as a bank for the child’s funds. Then, throughout the week, whenever she wanted a cent or two, she “drew a cheque” for that amount and kept track of her balance. The little girl not only found that fun, but began to learn real responsibility in handling her money.
This is an excellent method and if you have a son or daughter of school age, and you want this child to learn how to handle money, I recommend it for your consideration.
Rule No. 9: II necessary, make a little extra money off your kitchen stove.
If after you budget your expenses wisely you still find that you don’t have enough to make ends meet, you can then do one of two things: you can either scold, fret, worry, and complain, or you can plan to make a little additional money on the side. How? Well, all you have to do to make money is to fill an urgent need that isn’t being adequately filled now. That is what Mrs. Nellie Speer, 37-09 83rd Street, Jackson Heights, New York, did. In 1932, she found herself living alone in a three-room apartment. Her husband had died, and both of her children were married. One day, while having some ice-cream at a drug-store soda fountain, she noticed that the fountain was also selling bakery pies that looked sad and dreary. She asked the proprietor if he would buy some real home-made pies from her. He ordered two. “Although I was a good cook,” Mrs. Speer said, as she told me the story, “I had always had servants when we lived in Georgia, and I had never baked more than a dozen pies in my life. After getting that order for two pies, I asked a neighbour woman how to cook an apple-pie. The soda-fountain customers were delighted with my first two home-baked pies, one apple, one lemon. The drugstore ordered five the next day. Then orders gradually came in from other fountains and luncheonettes. Within two years, I was baking five thousand pies a year-I was doing all the work myself in my own tiny kitchen, and I was making a thousand dollars a year clear, without a penny’s expense except the ingredients that went into the pies.”
The demand for Mrs. Speer’s home-baked pastry became so great that she had to move out of her kitchen into a shop and hire two girls to bake for her: pies, cakes, bread, and rolls. During the war, people stood in line for an hour at a time to buy her home-baked foods.
“I have never been happier in my life,” Mrs. Speer said. “I work in the shop twelve to fourteen hours a day, but I don’t get tired because it isn’t work to me. It is an adventure in living. I am doing my part to make people a little happier. I am too busy to be lonesome or worried. My work has filled a gap in my life left vacant by the passing of my mother and husband and my home.”
When I asked Mrs. Speer if she felt that other women who were good cooks could make money in their spare time in a similar way, in towns of ten thousand and up, she replied: “Yes-of course they can!”
Mrs. Ora Snyder will tell you the same thing. She lives in a town of thirty thousand-Maywood, Illinois. Yet she started in business with the kitchen stove and ten cents’ worth of ingredients. Her husband fell ill. She had to earn money. But how? No experience. No skill. No capital. Just a housewife. She took the white of an egg and sugar and made some candy on the back of the kitchen stove; then she took her pan of candy and stood near the school and sold it to the children for a penny a piece as they went home. “Bring more pennies tomorrow,” she said. “I’ll be here every day with my home-made candy.” During the first week, she not only made a profit, but had also put a new zest into living. She was making both herself and the children happy. No time now for worry.
This quiet little housewife from Maywood, Illinois, was so ambitious that she decided to branch out-to have an agent sell her kitchen-made candy in roaring, thundering Chicago. She timidly approached an Italian selling peanuts on the street. He shrugged his shoulders. His customers wanted peanuts, not candy. She gave him a sample. He liked it, began selling her candy, and made a good profit for Mrs. Snyder on the first day. Four years later, she opened her first store in Chicago. It was only eight feet wide. She made her candy at night and sold it in the daytime. This erstwhile timid housewife, who started her candy factory on her kitchen stove, now has seventeen stores-fifteen of them in the busy Loop district of Chicago.
Here is the point I am trying to make. Nellie Speer, in Jackson Heights, New York, and Mrs. Ora Snyder, in May-wood, Illinois, instead of worrying about finances, did something positive. They started in an extremely small way to make money off the kitchen stove-no overhead, no rent, no advertising, no salaries. Under these conditions, it is almost impossible for a woman to be defeated by financial worries.
Look around you. You will find many needs that are not filled. For example, if you train yourself to be a good cook, you can probably make money by starting cooking classes for young girls right in your own kitchen. You can get your students by ringing door-bells.
Books have been written about how to make money in your spare time; inquire at your public library. There are many opportunities for both men and women. But one word of warning: unless you have a natural gift for selling, don’t attempt door-to-door selling. Most people hate it and fail at it.
Rule No. 10: Don’t gamble-ever.
I am always astounded by the people who hope to make money by betting on the ponies or playing slot machines. I know a man who makes his living by owning a string of these “one armed bandits”, and he has nothing but contempt for the foolish people who are so naive as to imagine that they can beat a machine that is already rigged against them.
I also know one of the best known bookmakers in America. He was a student in my adult-education classes. He told me that with all his knowledge of horse racing, he couldn’t make money betting on the ponies. Yet the facts are that foolish people bet six billion dollars a year on the races-six times as much as our total national debt back in 1910. This bookmaker also told me that if he had an enemy he despised, he could think of no better way of ruining him than by getting him to bet on the races. When I asked him what would happen to the man who played the races according to the tipster sheets, he replied: “You could lose the Mint by betting that way.”
If we are determined to gamble, let’s at least be smart. Let’s find out what the odds are against us. How? By reading a book entitled How to Figure the Odds, by Oswald Jacoby-an authority on bridge and poker, a top-ranking mathematician, a professional statistician, and an insurance actuary. This book devotes 215 pages to telling you what the odds are against your winning when you play the ponies, roulette, craps, slot machines, draw poker, stud poker, contract bridge, auction pinochle, the stock market. This book also give you the scientific, mathematical chances on a score of other activities. It doesn’t pretend to show how to make money gambling. The author has no axe to grind. He merely shows you what the odds are against your winning in all the usual ways of gambling; and when you see the odds, you will pity the poor suckers who stake their hard-earned wages on horse races or cards or dice or slot machines. If you are tempted to shoot craps or play poker or bet on horses, this book may save you a hundred times-yes, maybe a thousand times-what it costs.
Rule No. 11: If we can’t possibly improve our financial situation, let’s be good to ourselves and stop resenting what can’t be changed.
If we can’t possibly improve our financial situation, maybe we can improve our mental attitude towards it. Let’s remember that other people have their financial worries, too. We may be worried because we can’t keep up with the Joneses; but the Joneses are probably worried because they can’t keep up with the Ritzes; and the Ritzes are worried because they can’t keep up with the Vanderbilts.
Some of the most famous men in American history have had their financial troubles. Both Lincoln and Washington had to borrow money to make the trip to be inaugurated as President.
If we can’t have all we want, let’s not poison our days and sour our dispositions with worry and resentment. Let’s be good to ourselves. Let’s try to be philosophical about it. “If you have what seems to you insufficient,” said one of Rome’s greatest philosophers, Seneca, “then you will be miserable even if you possess the world.”
And let’s remember this: even if we owned the entire United States with a hog-tight fence around it, we could eat only three meals a day and sleep in only one bed at a time.
To lessen financial worries, let’s try to follow these eleven rules:
1. Get the facts down on paper.
2. Get a tailor-made budget that really fits your needs 1
3. Learn how to spend wisely.
4. Don’t increase your headaches with your income.
5. Try to build credit, in the event you must borrow.
6. Protect yourself against illness, fire, and emergency expenses.
7. Do not have your life-insurance proceeds paid to your widow in cash.
8. Teach your children a responsible attitude towards money.
9. If necessary, make a little extra money off your kitchen stove.
10. Don’t gamble-ever.
11. If we can’t possibly improve our financial situation, let’s be good to ourselves and stop resenting what can’t be changed.
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Part Ten – “How I Conquered Worry”
32 True Stories
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Six Major Troubles Hit Me All At Once
BY C.I. BLACK WOOD
Proprietor, Blackwood-Davis Business College Oklahoma City, Oklahoma
In the summer of 1943, it seemed to me that half the worries of the world had come to rest on my shoulders.
For more than forty years, I had lived a normal, carefree life with only the usual troubles which come to a husband, father, and business man. I could usually meet these troubles easily, but suddenly-wham! wham!! wham!!! wham! !!! WHAM! !!!! WHAM!!!!!! Six major troubles hit me all at once. I pitched and tossed and turned in bed all night long, half dreading to see the day come, because I faced these six major worries.
1. My business college was trembling on the verge of financial disaster because all the boys were going to war; and most of the girls were making more money working in war plants without training than my graduates could make in business offices with training.
2. My older son was in service, and I had the heart-numbing worry common to all parents whose sons were away at war.
3. Oklahoma City had already started proceedings to appropriate a large tract of land for an airport, and my home- formerly my father’s home-was located in the centre of this tract. I knew that I would be paid only one tenth of its value, and, what was even worse, I would lose my home; and because of the housing shortage, I worried about whether I could possibly find another home to shelter my family of six. I feared we might have to live in a tent. I even worried about whether we would be able to buy a tent.
4. The water well on my property went dry because a drainage canal had been dug near my home. To dig a new well would be throwing five hundred dollars away because the land was probably being appropriated. I had to carry water to my livestock in buckets every morning for two months, and I feared I would have to continue it during the rest of the war.
5. I lived ten miles away from my business school and I had a class B petrol card: that meant I couldn’t buy any new tyres, so I worried about how I could ever get to work when the superannuated tyres on my old Ford gave up the ghost.
6. My oldest daughter had graduated from high school a year ahead of schedule. She had her heart set on going to college, and I just didn’t have the money to send her. I knew her heart would be broken.
One afternoon while sitting in my office, worrying about my worries, I decided to write them all down, for it seemed no one ever had more to worry about than I had. I didn’t mind wrestling with worries that gave me a fighting chance to solve them, but these worries all seemed to be utterly beyond my control. I could do nothing to solve them. So I filed away this typewritten list of my troubles, and, as the months passed, I forgot that I had ever written it. Eighteen months later, while transferring my files, I happened to come across this list of my six major problems that had once threatened to wreck my health. I read them with a great deal of interest-and profit. I now saw that not one of them had come to pass.
Here is what had happened to them: