Small Savings Build Fortunes

 "We won't get much here," whispered a lady to her companion, as John Murray blew out one of the two candles by whose light he had been writing when they asked him to contribute to some benevolent object. He listened to their story and gave one hundred dollars. "Mr. Murray, I am very agreeably surprised," said the lady quoted; "I did not expect to get a cent from you." The old Quaker asked the reason for her opinion; and, when told, said, "That, ladies, is the reason I am able to let you have the hundred dollars. It is by practicing economy that I save up money with which to do charitable actions. One candle is enough to talk by."

    Emerson relates the following anecdote: "An opulent merchant in Boston was called on by a friend in behalf of a charity. At that time he was admonishing his clerk for using whole wafers instead of halves; his friend thought the circumstance unpropitious; but to his surprise, on listening to the appeal, the merchant subscribed five hundred dollars. The applicant expressed his astonishment that any person who was so particular about half a wafer should present five hundred dollars to a charity; but the merchant said, "It is by saving half wafers, and attending to such little things, that I have now something to give."

     "How did you acquire your great fortune?" asked a friend of Lampis, the shipowner. "My great fortune, easily," was the reply, "my small one, by dint of exertion."


    Four years from the time Marshall Field left the rocky New England farm to seek his fortune in Chicago he was admitted as a partner in the firm of Coaley, Farwell & Co. The only reason the modest young man gave, to explain his promotion when he had neither backing, wealth, nor influence, was that he saved his money.

If  you begin at age twenty and save just three dollars every day, investing at 7% compound interest, you could have $150,000 when you reach 55 years old.  A few dollars each day is no unusual expenditure for beer or cigarettes, yet in fifty years it could easily amount to $250,000. The key is to start saving your money early.
 
   The money we spend on just one vice would bring up two children.

Such rigid economy, such high courage, enables one to surprise the world with gifts even if he is poor. In fact, the poor and the middle classes give most in the aggregate to missions and hospitals and to the poor. Only frugality enables them to outdo the rich on their own ground.

Hard Work and Luck

The Press often publishes stories of great fortunes made winning the lottery or in Vegas or Monte Carlo. The proprietors there love this publicity - it brings them new patrons.

It is necessary to dwell on this gambling side of the question, because every man who believes in luck has a touch of the gambler in him, though he may never have played a stake. And from the point of view of real success in affairs the gambler is doomed in advance. It is a frame of mind which a man should discourage severely when he finds it within the citadel of his mind. It is a view which too frequently infects young men with more ambition than industry.

The view of Fortune as some shining goddess sweeping down from heaven and touching the lucky recipient with her pinions of gold dazzles the mind of youth. Men think that with a single stroke they will either be made rich for life or impoverished for ever.

The more usual view is less ambitious. It is the complaint that Fortune has never looked a man's way. Failure due to lack of industry is excused on the ground that the goddess has proved adverse. There is a third form of this mental disease. A young man spoke to me in Las Vegas the other day, and said, "I could do anything if only I had the chance, but that chance never comes my way." On that same evening I saw the aspirant throwing away whatever chance he may have had at the tables.

A similar type of character is to be found in the young man who consistently refuses good offers or even small chances of work because they are not good enough for him. He expects that Luck will suddenly bestow on him a ready-made position or a gorgeous chance suitable to the high opinions he holds of his own capacities. After a time people tire of giving him any openings at all. In wooing the Goddess of Luck he has neglected the Goddess of Opportunity.

These men in middle age fall into a well-known class. They can be seen haunting the Temple, and explaining to their more industrious and successful associates that they would have been CEOs if a big opportunity had ever come their way. They develop that terrible disease known as "the genius of the untried." Their case is almost as pitiful or ludicrous as that of the man of very moderate abilities whom drink or some other vice has rendered quite incapable. There will still be found men to whisper to each other as he passes, "Ah, if Brown didn't drink, he might do anything."

Far different will be the mental standpoint of the man who really means to succeed. He will banish the idea of luck from his mind. He will accept every opportunity, however small it may appear, which seems to lead to the possibility of greater things. He will not wait on luck to open the portals to fortune. He will seize opportunity by the forelock and develop its chances by his industry. Here and there he may go wrong, where judgment or experience is lacking. But out of his very defeats he will learn to do better in the future, and in the maturity of his knowledge he will attain success. At least, he will not be found sitting down and whining that luck alone has been against him.

There remains a far more subtle argument in favour of the gambling temperament which believes in luck. It is that certain men possess a kind of sixth sense in the realm of speculative enterprise. These men, it is said, know by inherent instinct, divorced from reasoned knowledge, what enterprise will succeed or fail, or whether the market will rise or fall. They are the children of fortune.

The real diagnosis of these cases is a very different one from that put forward by the mystic apostles of the Golden Luck. Eminent men who are closely in touch with the great affairs of politics or business often act on what appears to be a mere instinct of this kind. But, in truth, they have absorbed, through a careful and continuous study of events both in the present and the past, so much knowledge, that their minds reach a conclusion automatically, just as the heart beats without any stimulus from the brain. Ask them for the reasons of their decision, and they become inarticulate or unintelligible in their replies. Their conscious mind cannot explain the long-hoarded experience of their subconscious self. When they prove right in their forecast, the world exclaims, "What luck!" Well, if luck of that kind is long enough continued it will be best ascribed to judgment.

The real "lucky" speculator is of a very different character. He makes a brilliant coup or so and then disappears in some overwhelming disaster. He is as quick in losing his fortune as he is in making it. Nothing except Judgment and Industry, backed by Health, will ensure real and permanent success. The rest is sheer superstition.

Two pictures may be put before the believer in luck as an element in success. The one is Las Vegas where the Goddess Fortune is chiefly worshiped — steeped in almost perpetual sunshine, piled in castellated masses against its hills, gaining the sense of the illimitable from the blue horizon of the Mediterranean—a shining land meant for clean exercise and repose. Yet there youth is only seen in its depravity, while old age flocks to the central gambling hell to excite or mortify its jaded appetites by playing a game it is bound to lose.

Here you may see in their decay the people who believe in luck, steeped in an atmosphere of smoke and excitement, while beauty of Nature or the pursuits of health call to them in vain. Three badly lighted tennis courts compete with thirty splendidly furnished casino rooms. But of means for obtaining the results of exercise without the exertion there is no end. The Salle des Bains offers to the fat and the jaded the hot bath, the electric massage, and all the mechanical instruments for restoring energy. Modern science and art combine to outdo the attractions of the baths of Imperial Rome.

In far different surroundings from these were born the careers of the living captains of modern industry and finance men like Warren Buffet, Bill Gates, Andrew Carnegie, or Walt Disney. These men believed in industry, not in fortune, and in judgment rather than in chance. The youth of this generation will do well to be guided by their example, and follow their road to success. Not by the worship of the Goddess of Luck were the great fortunes established or the great reputations made.

It is natural and right for youth to hope, but if hope turns to a belief in luck, it becomes a poison to the mind. Our youth have before them a splendid opportunity, but let it remember always that nothing but work and brains counts, and that a man can even work himself into brains. No goddess will open to any man the portals of the temple of success. Young men must advance boldly to the central shrine along the arduous but well-tried avenues of solid judgment and hard work.

Start early. Work Hard. Save Your Money. Invest Wisely.

Make More Money

Many serious letters and a half-humorous criticism in Punch suggest that I am to be regarded as the apostle of a pure materialism. That is not so. I quite recognise the existence of other ambitions in the walks of Art, Religion, or Literature. But at the very outset I confined the scope of my advice to those who wish to triumph in practical affairs. I am talking to the young men who want to succeed in business and to build up a new nation. Criticism based on any other conception of my purpose is a spent shaft.

Money—the word has a magical sound. It conjures up before the vision some kind of enchanted paradise where to wish is to have—Aladdin's lamp brought down to earth.

Yet in reality money carries with it only two qualities of value: the character it creates in the making; the self-expression of the individuality in the use of it, when once it has been made. The art of making money implies all those qualities—resolution, concentration, economy, self-control—which make for success and happiness. The power of using it makes a man who has become the captain of his own soul in the process of its acquirement also the master of the circumstances which surround him. He can shape his immediate world to his own liking. Apart from these two faculties, character in acquirement, power in use, money has little value, and is just as likely to be a curse as a blessing. For this reason the money master will care little for leaving vast wealth to his descendants. He knows that they would be better men for going down stripped into the struggle, with no inheritance but that of brains and character. Wealth without either the wish, the brains, or the power to use it is too often the medium through which men pamper the flesh with good living, and the mind with inanity, until death, operating through the liver, hurries the fortunate youth into an early grave. The inheritance tax should have no terrors for the millionaire.

The value of money is, therefore, first in the striving for it and then in the use of it. The ambition itself is a fine one—but how is it to be achieved?

I would lay down certain definite rules for the guidance of the young man who, starting with small things, is determined to go on to great ones:—


1. The first key which opens the door of success is the trading instinct, the knowledge and sense of the real value of any article. Without it a man need not trouble to enter business at all, but if he possesses it even in a rudimentary form he can cultivate it in the early days when the mind is still plastic, until it develops beyond all recognition. When I was a boy I knew the value in exchange of every marble in my village, and this practice of valuing became a subconscious habit until, so long as I remained in business, I always had an intuitive perception of the real and not the face value of any article.

The young man who will walk through life developing the capacity for determining values, and then correcting his judgments by his information, is the man who will succeed in business.

2. But supposing that a young man has acquired this sense of values, he may yet ruin himself before he comes to the fruition of his talent if he will not practise economy. By economy I mean the economic conduct of his business. Examine your profit and loss account before you go out to conquer the financial world, and then go out for conquest—if the account justifies the enterprise. Too many men spend their time in laying down "pipe-lines" for future profits which may not arrive or only arrive for some newcomer who has taken over the business. There is nothing like sticking to one line of business until you have mastered it. A man who has learned how to conduct a single industry at a profit has conquered the obstacles which stand in the way of success in the larger world of enterprise.

3. Do not try to cut with too wide a swath. This last rule is the most important of all. Many promising young men have fallen into ruin from the neglect of this simple principle. It is so easy for premature ambition to launch men out into daring schemes for which they have neither the resources nor the experience. Acquire the knowledge of values, practise economy, and learn to read the minds of men, and your technique will then be perfected and ready for use on wider fields. The instinct for values, the habit of economy, the technique of business, are only three forms of the supreme quality of that judgment which is success.

For these reasons it is the first £10,000 which counts. There is the real struggle, the test of character, and the warranty of success. Youth and strength are given us to use in that first struggle, and a man must feel those early deals right down to the pit of his stomach if he is going to be a great man of business. They must shake the very fibre of his being as the conception of a great picture shakes an artist. But the first ten thousand made, he can advance with greater freedom and take affairs in his stride. He will have the confidence of experience, and can paint with a big brush because all the details of affairs are now familiar to his mentality. With this assured technique nothing will check the career.

"Why," says the innkeeper in an adaptation from Bernard Shaw's sketch of Napoleon in Italy, "conquering countries is like folding a tablecloth. Once the first fold is made, the rest is easy. Conquer one, conquer all."

Such in effect is the career of the great captains of industry. Yet the man who attains, by the practice of these rules, a great fortune, may fail of real achievement and happiness. He may not be able to recognise that the qualities of the aspirant are not exactly the qualities of the man who has arrived. The sense of general responsibility must supersede the spirit of private adventure.

The stability of credit becomes the watchword of high finance. Thus the great money master will not believe that periods of depression are of necessity ruinous. It is true that no great profits will be made in such years of depression. But the lean years will not last for ever. Industry during the period of deflation goes through a process like that of an over-fat man taking a Turkish bath. The extravagances are eliminated, new invention and energy spring up to meet the call of necessity, and when the boom years come again it finds industry, like a highly trained athlete, ready to pour out the goods and pay the wages. Economic methods are nurtured by depression.

But when all has been said and done, the sceptic may still question us. Is the capacity to make money something to be desired and striven for, something worth having in the character, some proof of ability in the mind? The answer is "Yes."

Money which is striven for brings with it the real qualities in life. Here are the counters which mark character and brains. The money brain is, in the modern world, the supreme brain. Why? Because that which the greatest number of men strive for will produce the fiercest competition of intellect. Politics are for the few; they are a game, a fancy, or an inheritance. Leaving out the man of genius who flares out, perhaps, once or twice in a century, the amount of ability which enables a man to cut a very respectable figure in a Cabinet is extraordinarily low, compared with that demanded in the world of industry and finance. The politician will never believe this, but it is so.

The battles of the market-place are real duels, on which realities of life and death and fortune or poverty and even of fame depend. Here men fight with a precipice behind them, not a pension of $200,000 a year. The young men who go down into that press must win their spurs by no man's favour. But youth can triumph; it has the resolution when the mind is still plastic to gain that judgment which experience gives.

Our advice to the young men of to-day is simply this: Money is nothing but the fruit of resolution and intellect applied to the affairs of the world. To an unshakable resolution fortune will oppose no bar.

Save your money.