Financial peace is where a paid-off home mortgage has replaced the BMW as the status symbol of choice. -Dave Ramsey
Being old and poor is much worse than being young and poor. If you make a mess of things while you are young, there is still time to make up for your mistakes. Seniors don’t have that luxury. As Tennessee Williams said, "You can be young without money but you can't be old without it."
In my youth, I overspent and got into debt. It was hell. But I recovered. Later, while still a young man, I took charge of a business that was teetering on the edge of bankruptcy. In those days, the government didn't give other people's money to failing private enterprises. Of course they don't do it now, either, unless they decide you are "too big to fail." Climbing out of those holes was tough going, but it taught me valuable lessons about financial fitness.
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"I have been pondering what advice to give about money. What I keep coming up with is this: Do not act like typical Americans. Do not fail to save. Do not get yourself in debt up to your eyeballs. Work and take pride and honor from your work. Learn a useful skill that Americans really need, like law or plumbing or medicine or nursing . . . " —Ben Stein
Mr. Stein was offering advice to young adults. However, the advice should apply to all of us at any age, particularly the part about "Do not get yourself in debt up to your eyeballs."
Many in government urge consumers (us) to spend more to get or keep the economy going. I understand. But watch out. Easy credit and buying things people really can't afford gets them in trouble. It is the polar opposite of financial fitness. Does anyone believe government will rescue you if deep in debt? No. All of us are on our own unless in the eyes of government we are "too big to fail."
Protect yourself
Here are six things that my years have taught me personally about financial fitness:
One of the most satisfying feelings you will ever experience is being debt free.
I have found the following people to be honest and reliable financial fitness sources. Each may have a different approach to money management, but all offer solid financial information. I do not get paid or receive any compensation for recommending them.
Clark Howard: One of the best consumer advocates around.
Eric Tyson: A good book to have at hand is Tyson's Personal Finance for Seniors for Dummies. Whenever he updates the book, I get the latest edition.
Dave Ramsey: His books and radio program are strong medicine to cure money ills.
Bob Brinker: His long running "Money Talk" radio program is a good one for investment advice.
Of further interest to mature adults . . .
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