Henry Ford Might Be Able To Improve The Production Of Your Finances
Written by Cassandra Garnett
July 13, 2018 |
Henry Ford was a revolutionary captain of industry in the United States. His optimized model of assembly line labor meant that Ford was able to produce cars at a massive scale. The result was the company now known as the Ford Motor Company, a still thriving business. Ford left us with many inspiring quotes that might just help optimize the production of your finances.
Henry Ford was a very ambitious industrialist, and during his lifetime many very insightful quotes were recorded. Despite Ford's focus on large scale industrial projects including the Ford Motor Company and the Fordlândia project in the Amazonian jungle, many of his quotes still have relevance to individual finances today.
Never Concede Defeat
Of all of Ford's quotes, arguably this is the best. Too often people assume they will always be in debt. Debt loads are large per person, and in some states amount to $1.92 in debt for every $1 earned in income. With a debt to income ratio of 1.92, it can seem as though the elimination of debt is an impossible quest.
Assuming you will always be in debt encourages you to continue to spend beyond your means. After all, if you'll only end up in debt anyway, why bother even trying to avoid it? Average debt loads are high, but it is growth of this type of ratio that is particularly scary.
Debt elimination takes hard work, and you have to believe you can do it. There will be times where the sheer enormity of debt seems impossible. But if you think you can get out of debt, you're right!
Your Finances Are Affected By Dependents
Your spouse and family need to be on board with plans to more effectively manage spending. If you have a spouse or dependents who do not agree with your financial plan, it is almost a certainty that the plan will fail. The key to an effective financial plan is to provide a mechanism for a reasonable amount of discretionary spending without that amount being enough to cause serious damage to your financial future.
It is also not enough for everyone to agree: the rubber hits the road when sacrifices are made to avoid bad spending. Nods, handshakes, and even signatures all amount to nothing if promises made to follow a financial plan are broken. The first test will be a sacrifice made by you or your family to avoid a purchase that would cause financial harm.
Success should be shared among all participants. Once a financial milestone is met, a dinner out or a movie shared together might go a long way to help ensure future milestones also get achieved smoothly.
Always pursue success with respect to your finances, even after you are at a goal point. That may be a certain level of savings or the elimination of debt. Don't let a milestone let you part from financial prudence. Keep working as a team long term.
It's Never Over
Everyone makes poor spending choices - sometimes even with large purchases like a car or home. Being aware of what differentiates a good versus bad purchase is essential. The only long term threat to your finances is repeating the same financial mistakes over and over. Understand what makes a good purchase, and avoid making bad ones.
Do you have a favorite Henry Ford quote that provides you with inspiration in your personal financial planning? What changes did you implement in your financial life as a result of a Henry Ford quote?
Here is the original presentation used for this post: