Benjamin Franklin, is commonly referred to as “The First American.”  According to his Wikipedia entry, “He was also a “polymath, he was a leading writer, printer, political philosopher, politician, Freemason, postmaster, scientist, inventor, humorist, civic activist, statesman, and diplomat. As a scientist, he was a major figure in the American Enlightenment and the history of physics for his discoveries and theories regarding electricity. As an inventor, he is known for the lightning rod, bifocals, and the Franklin stove, among other inventions. He founded many civic organizations, including the Library Company, Philadelphia’s first fire department, and the University of Pennsylvania.” He was many things in one. He was also a great businessman.

But if you read his autobiography, you’ll find very insightful notes on Benjamin Franklin’s personal finance. 

1. Learn as Much as You Can

Benjamin Franklin was known to be a prolific reader. And in his time when books aren’t readily available, he sought books even with his rivals. His reading made him what he was, a little bit of everything.

“From my infancy, I was passionately fond of reading, and all the money that came into my hands was laid out in the purchasing of books.

“This library afforded me the means of improvement by constant study, for which I set apart an hour or two each day, and thus repaired in some degree the loss of the learned education my father once intended for me. Reading was the only amusement I allowed myself. I spent no time in taverns, games, or frolics of any kind; and my industry in my business continued as indefatigable as it was necessary. “

2. Never Buy on a Whim

When Benjamin was seven, he was charmed by a boy’s whistle that Ben offered him all his available money. The boy agreed with the deal and left Benjamin happily playing with his new whistle. However, this happiness fell short when Ben found out from his siblings that he paid 4x for the real price of the whistle.
A good lesson he learned early.
Franklin will then use the experience whenever he’d buy things.

“This, however, was afterward of use to me, the impression continuing on my mind; so that often, when I was tempted to buy some unnecessary thing, I said to myself, Don’t give too much for the whistle; and I saved my money.
As I grew up, came into the world, and observed the actions of men, I thought I met with many, very many, who gave too much for the whistle.”

3. Go DIY If You Can

Ben’s father took him to craftsmen so that he can find a trade he would like and not go off to the sea. He observed the craftsmen with gusto and got inspired by the handyman spirit.

“It has ever since been a pleasure to me to see good workmen handle their tools. And it has been often useful to me, to have learned so much by it, as to be able to do some trifling jobs in the house, when a workman was not at hand, and to construct little machines for my experiments, at the moment when the intention of making these was warm in my mind.”
As most of us all know, Benjamin was known to be a penny pincher and used this newfound way of DIYing things a great hobby, and later on a good business of his own.

4. Choose Your Friends Wisely

Franklin had a friend named James Ralph who had a penchant for borrowing money at the expense of poor Ben who worked hard to keep his printing business go. James Ralph unsuccessfully looked for work as a clerk, journalist, and actor. They had a falling out and never repaid Franklin.

After this troubling experience for a penny pincher, Ben Franklin started to choose his friends wisely. He associated himself with friends who shared his own values and even challenge his own through discourse. He formed a self-improvement group calle the “Junto” of which group members challenged each other’s ideas to help boost each other’s minds.

5. Slow and Steady Wins the Race

Even though Benjamin Franklin was considered a genius. He was not an overnight success. He started from the bottom and worked his way up. He saved enough money to be able to start his own business. His penny pinching technique included eating two pieces of bread every dinner. He tracked his day and wrote on his diary. He made sure he was a productive man ‘til his last breath.

6. Wealth to Him Was a Means to an End

Ben accumulated wealth so that he can do more of the things he loved, read, experiment, invent, visit friends, do whatever he liked. That’s the power of money. If someone says money can’t buy happiness, we disagree. Money enables you to enjoy your life more.

Did we miss any personal finance tips from Benjamin Franklin? What tips would you like to add?

 

Buy Ben’s book here: 

The Autobiography of Benjamin Franklin