By Don McNay
CNHI News Service
I preach a simple gospel: Think about the long-term. Don’t trust Wall Street, your government or your employer to take care of you.
The world is an increasingly complicated place, but one rule has held true for centuries: People who have financial security control the destiny of the people who don’t.
The late John Savage, a frequent speaker at the Million Dollar Round Table, said, “Spenders in the world always work for savers. It never happens the other way around.”
The rich get richer for many reasons. One is that they take a long-term view about their money.
I was flipping though the news channels when I heard someone demand that we not give tax rebates to the poor. “Rich people accumulate wealth. Poor people accumulate things,” he said.
He had a trickle-up theory of economics. He believed poor people will go on wild spending sprees while wealthy people sock it away.
Most poor people need their income just to survive. Many people are broke because they don’t handle money well.
A line separates savers and spenders. Savers wind up with wealth, and spenders wind up with debt. People on their way to wealth have good savings habits. People living beyond their means blow money on stuff they don’t need.
When I was growing up, I used to think some people didn’t have good jobs. They lived in rundown houses and often had their cars repossessed. I found out some made as much money as my parents - sometimes more. The people who lived in rundown houses spent money on gadgets they didn’t use and motorboats that never made it in the water. They had no sense of long-term planning and ultimately had no money.