“There is much revenue in economy, and no revenue is sufficient without economy.”
“In short, the Way to Wealth depends chiefly on two words, Industry and Frugality. He that gets all he can honestly and saves all he gets (necessary expenses excepted) will certainly become RICH.
— Benjamin Franklin
Several years ago, I visited St. Kitts in the Caribbean for a Liberty Forum conference (my 76th country to visit). As I was standing in line to go through immigration, the man next to me said, “Are you Mark Skousen?” I said yes, and he said, “I’m a lifetime subscriber, and you’ve made me a rich man. In fact, I’ve made more money from your newsletter than from my business as a trial lawyer!” He and his wife were coming to the Caribbean to stay at their vacation home they had bought with profits from my newsletter recommendations.
The Three Financial Virtues: ‘Industry, Thrift, and Prudence’
As a eighth generation direct descendant, I’d like to think I follow the advice of Ben Franklin when it comes to being “healthy, wealthy and wise.”
In 1757, on his way to England, the financial guru decided to write down his thoughts about making money and becoming rich. The essay was published in the 1758 edition of “Poor Richard’s Almanack” and became so popular he made it into a separate pamphlet called “The Way to Wealth.”
According to the sage from Philadelphia, the key to financial success depends on applying three grand principles: industry, thrift and prudence. Let’s discuss each one.
Principle #1: Work Hard
First, industry. By that, Franklin means working hard and working successfully. He once wrote a friend, “It is incredible the quantity of good that may be done in a country by a single man who will make a business of it and not suffer himself to be diverted from that purpose by different avocations, studies and amusements” (see p. 13 of my new book).
Franklin worked hard to become the best printer in Philadelphia and the colonies. He would show up early to work and stay late. He bought the latest presses and tools from England to stay ahead of the competition.
Most importantly, he leveraged his success by borrowing judiciously and franchising his printing business throughout the East Coast.
Principle #2: Live Within Your Means and Save Regularly
Second, thrift. Living frugally means living within your means and avoiding unnecessary waste by shopping around and limiting your needs. As Poor Richard says, “There’s much revenue in economy.” Furthermore, “no revenue is sufficient without economy.” Millionaires have gone bankrupt because they spent too much. The only secure way to build wealth and keep it is to save every year and invest it wisely.
George Clason incorporated Franklin’s wisdom when he told the story of Arkad in “The Richest Man in Babylon” in the 1920s. He wrote, “In old Babylon there once lived a certain very rich man named Arkad. Far and wide he was famous for his great wealth. Also, he was famed for his liberality. He was generous with his charities. He was liberal in his own expenses. But nevertheless, each year his wealth increased more rapidly than he spent it.” How? By always saving at least 10% of his new income, no matter how much he earned. Save a lot and save often. I’ve known middle-class investors who save 35% of their income regularly by controlling their expenses. John Train wrote in “The Money Master,” that “most of the great investors are misers.”
Principle #3: Be Conservative and Wise with Your Money
Third, prudence. How many successful people in business have destroyed all their hard-earned wealth practically overnight by investing in penny stocks, a pre-IPO private placement, or a highly speculative venture that wiped them out? I’ve seen it time and time again. It’s tragic.
Franklin was willing to take risks but never overdid it. He was always well diversified in rental properties, government bonds, bank stocks and bank accounts in three countries. In the good times, he saved money and invested wisely, so that when the bad times came, he was able to weather the storm. In 1772, there was a banking crisis in London, but Franklin survived by having his funds in two conservative banking houses that withstood the bank run. “Being out of debt myself my credit could not be shaken by any run upon me,” Franklin wrote home.
At the end of his life, Franklin mused, “The years roll round and the last will come; when I would rather have it said, He lived usefully, than, he died rich.” He ended up both.
You can, too, if you play your cards right.
Franklin Was the First…
Ben Franklin was first in many areas: first scientific American, first diplomat, first humorist, first postmaster general and first American. He may well have been the first financial self-help guru!
Among his many careers, Franklin was a financial counselor, dispensing sound advice to his friends and clients on how to be financial independence. I quote him 20 times in the current edition of “The Maxims of Wall Street.” Only Warren Buffett and Jesse Livermore are quoted more. (“Maxims” is available at a discount at http://www.skousenbooks.com.)
Twenty-one chapters of my new book, “The Greatest American,” are devoted to his advice in business, personal finance and investing.
First Book Review Out of ‘The Greatest American’
Response to my new book — the first in 10 years — has been gratifying. In case you missed it, read about it here.
The first book review, by Chuck Muth, is already out: Book Review: “The Greatest American” by Mark Skousen — Nevada News and Views.
John Mackey writes, “Of all the founding fathers, Ben Franklin is my favorite. He was America’s first conscious capitalist, achieving financial independence by meeting the needs and well-being of his customers. He then used his wealth to improve the community and played a crucial role saving the country during its darkest hours. More than any other writer, Mark Skousen illustrates why Franklin has come to be regarded, both by citizens and historians, as the greatest American.”
The retail price is $29.99, but you can obtain autographed copies for only $24 each at www.skousenbooks.com. All additional copies are $19 each. Many subscribers have bought multiple copies as gifts. One subscriber bought eight copies! I autograph all copies and mail them at no additional charge if mailed inside the United States.
Let’s make America free and proud again — Ben Franklin shows the way!
FreedomFest Agenda Is Now Posted: Over 100 Speakers, Panels and Debates!
FreedomFest is only 28 days away. And we just posted the full agenda here. Click on “schedule” and see the incredible line-up of speakers, panels, debates, Anthem films and entertainment.
You won’t want to miss our own libertarian magician at the opening cocktail party on Wednesday evening, June 11, with Doc Dixon.
Our conference is famous for its debates. Who can forget the debate between Kevin O’Leary (Mr. Wonderful on Shark Tank) and John Mackey (founder, Whole Foods Market)? You can watch it here.
What do we have planned for this year? Here’s a sample:
“The Tariff-ying World of Donald Trump: Trade Wars, Protectionism and the Future of Global Markets”
— Steve Forbes, Barbara Kolm, Art Laffer, Helen Raleigh (moderated by Mark Skousen).
“The Grand D-ebate: The Deficit and the Debt, Danger or Delusion?”
— John Tamny and Art Laffer, Rob Arnott and Alex Green (moderated by Mark Skousen).
“Bitcoin vs. Gold: The Future of Alternative Currency in America”
“How to Avoid the Next Financial Crisis”
— John Fund, Steve Forbes, Grover Norquist and Peter Schiff
“Foreign Policy: Isolationist or Interventionist?”
— Scott Horton vs TBD
“Searching for the Philosopher’s Stone: How to Achieve a Life of Flourishing and True Well-being”
— Brian Thomassen, “Bridging Philosophy and Business”… Eric Weiner, author, “The Socrates Express.”… Joel Wade, “Coaching Happiness, Mastering Life”… William Deresiewicz, “Reclaiming Individuality in an Age of Conformity”
Mock Trial: “Big Pharma on Trial” with Michael Shermer as the judge; Del BigTree as prosecuting attorney, Catherine Bernard as defending attorney, and star witnesses Dr. Robert Malone, Twila Brase, and Aaron Siri
Register Now and Save $100 Off the Retail Price
Our hotel room block is filling up, but there’s still time to come aboard, even if you can only join us for a day or two. (One- and two-day passes are available.)
Use code EAGLE to save $100 off the full retail price: Begin Registration: FreedomFest Palm Springs 2025 Or call Hayley at 1-855-850-3733, ext. 202.
And be sure to sign up for my Saturday morning breakfast on “Amazing Graphs: 10 Shocking Charts on Money and the Economy.” New!
Good investing, AEIOU,
Mark Skousen
You Nailed it!
Workfare to Replace Welfare
by Mark Skousen
In 1996, President Bill Clinton worked with House Speaker Newt Gingrich and Republicans to sign into law “The Welfare Reform Act of 1996.” It required welfare recipients to get off food stamps, Medicaid and Section 8 Housing if they were able-bodied workers after five years. The plan was so successful that people on food stamps and Medicaid actually declined for the first time.
Then came the financial crisis of 2008, and in 2009, President Barack Obama discontinued the program. Big mistake. Now around 12% of Americans are on welfare, and the numbers keep increasing. Many able-bodied men and women continue to be on welfare, even when the economy is at full employment. The labor participation rate continues to decline.
Fortunately, the Republicans are resurrecting the work requirements in the tax bill that is working its way through Congress. Republicans will require work for able-bodied adults up to age 64 from age 54 now. Parents with children age seven or older will also be required to work.
Our welfare system is a disgrace and has become a permanent feature in many American households, where three generations are on welfare.
