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I know a barber who had the opportunity of
buying one of the oldest and best barbershops in
his city. He had worked there for a few years,
and knew it was a good investment. So, he made
arrangements with the owner, and took the
plunge.
However, it wasn't long before he realized he
was in serious financial difficulty. Actually,
he was in trouble before the purchase of the
shop, and the added debt put him in way over his
head.
Prior to obtaining the barbershop, this fellow
had several bad business ventures. They were all
legitimate. Just bad choices! Generally, they
all involved selling, in which he was not
exactly a shining star. Oh, he did manage to
sell a few things such as his house and his car.
It was not quite that bad, but almost.
About the same time as the business failures and
the purchase of the barbershop, his wife and two
daughters were in college. So the debts really
began to pile up, as the pressure became
intolerable. Also, fatigue set in because of the
three jobs he was working so that he could
continue to tread water.
The barber/entrepreneur did a couple of things
he thought might relieve some immediate
pressure. He borrowed on credit cards and from
the Internal Revenue Service (by not paying
estimated taxes). Eventually everything started
to come apart, as the IRS threatened a tax
lien.
For lunch one Saturday the barber's family came
to his shop after hours, as they often did. He
was so overcome with worry and stress that he
verbally threw them out. Then he went home,
closed his bedroom door and considered how he
might end his life without destroying his family
or disappointing his God. As it turned out, only
thoughts of God and family keep him from doing
the unthinkable.
As you might guess, I know the fellow's story so
well because I'm the fellow. Today, I'm pleased
to say that, because I obtained the help I
needed emotionally and financially, I'm well on
the way to being completely debt free in few
years (except for a home mortgage). And, I lead
a happier, fuller life than ever. However, I've
been left with some lessons I'll never
forget.
The first lesson is: ìDebt robs a man of
his self-respect, and makes him almost despise
himself.î (P.T. Barnum). Thus, there's a
need to use credit wisely. Self-esteem is at
stake. And, while you might buy things on credit
that you can't afford, because it temporarily
lifts your spirits or gives you something to
show to others, it's not worth the shame and
loathing when debt becomes overwhelming. Learn
to live within your means even if it involves
doing without!
The second lesson is how a loss of respect due
to financial woes affects one's attitude toward
others. Sherry can always tell when I'm not
happy with myself. That's when I'm unkind to
her. I'm the same way with customers. In fact,
there's no telling how much business I ran off
while I was drowning financially and
emotionally. I could easily have lost both my
family and my business.
The third lesson I will pass along is that
'There is more satisfaction in rational saving,
than in irrational spending.' (P.T. Barnum). As
per the financial advice I received for turning
our circumstances around, Sherry and I began a
consistent, well-planned investment, retirement
program. That, combined with the fact that the
barbershop is now paid for, is very satisfying.
It's much more satisfying than new, showy things
that we don't need or can't afford. I'm no
longer interested in a big hat. I want the
cattle!
Lesson number four is to learn from others.
Experience (the school of hard knocks) is a
great teacher, but not the best. That's because
much of its value is lost in the time it takes
to learn the lessons. Time-tested principles are
the best teachers, and they can be discovered in
writings, seminars, counseling and advice from
those who have been there.
Yet, it still takes time to learn these things.
And, as John Wayne said, 'We're burnin'
daylight.'
Control your money or it will control you.
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