Benjamin Franklin and a Lifelong Investment in Learning
Benjamin Franklin was one of the founding fathers of the U.S.A. Although he lived more than three centuries ago, Franklin’s advice – “An investment in learning pays the best interest” – is just as relevant today as it was for 18th century citizens, entrepreneurs and investors.
Even if you didn’t like high school math, an understanding of numbers is absolutely essential for business, because you have to know what revenue comes in, what goes out, and what stays in your pocket. You also need to know how much it costs to produce and sell your product, and what margin you can add to that to be profitable etc.
(Photo Credit: Lifehack)
Typically, our college and university studies prepare us to specialize in a certain field or industry. In my case, it was languages. Rather than become a teacher, I opened a school, which has thrived for over 35 years (albeit now under different ownership). However, once you open a business, you simply must commit to lifelong learning to improve your knowledge and keep up with the pace of change, especially your obligations in an evolving regulatory and legislative environment.
And hats off to learning from mistakes. When we survive a big error in business, whether it’s in sales, marketing, human resources, or legal and accounting matters, we quickly realize that we’d better not do that again. Many years ago our bookkeeping system failed to keep track of revenue that came in for a future financial year and counted the revenue as current. We thought we had made a great profit one year, but in the next year, we had no revenue to cover the expenses of those students. Ouch! We survived that, and made the necessary adjustments to our system so that we didn’t do that again.
To grow and protect their wealth, wise investors are also life-long learners who improve their knowledge throughout their investing career, sometimes through education and sometimes through mistakes they make.
New to investing? Take advantage of my no-cost seminars and webinars. Contact me at email@example.com for information on upcoming sessions. More experienced investor? Turn your mind to subjects such as:
- corporate class mutual funds
- preferred shares
- the effect of rising interest rates or commodity prices on bonds
- active vs. passive investing
- tax and estate planning
- layering your income during retirement to pay the least tax
- and so much more
I’m here to educate both new and experienced business owners and investors to reap more from your business and your investments.
It’s just good advice.
Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Note: Leveraging carries its own risks and is not for everyone. Talk to your financial advisor for advice on properly managing those risks.