Money Lessons: 1,572 Years Worth of Financial Expertise

I recently interviewed nearly two-dozen men who lived through the Great Depression. Given our unpredictable economy, my hope was that these life soldiers, who’ve seen more monetary hardship and challenge than we probably ever will, would be able to offer some advice on negotiating the current morass.

The men ranged in age from 83 to 104. Collectively, they represented 1,572 years of living experience (or slightly less than Joan Rivers). Here’s what I learned from these old-timers:

Work as long as you can. While most of these guys are still financially comfortable, a sad few who retired in their 60s with seemingly adequate nest eggs have outlived their savings. They just never expected to have a life after retirement that was nearly as long as their life before it. Given medicine’s ongoing advances, it’s possible that retiring early and living long and comfortably might now be mutually exclusive ideals. In fact, I’m more dubious that I’ll ever be able to stop working and more mystified by how much money is enough.

Don’t let bankruptcy seduce you. I had one guy tell me it was the worst decision of his life. It’s not just your debts that you forgo, it’s your reputation, he said. “Even to this day – and I’m 89, mind you – if I were to apply for credit, I wouldn’t get it.”

Hustle, hustle, hustle. Although most of them had mainstay careers, they also moonlighted whenever they had to. In other words, they were resourceful. “You got to go to work,” said one 92-year-old. “You can’t let work come to you.”

Frugality pays the highest return. Clipping coupons, researching big purchases, bartering skills, having a garden…saving a little here and there has the highest compounding interest of any investment.

Veto the Visas. The only money the majority of these men ever borrowed was the loan to buy their home. Everything else, even right up to today, is a cash exchange. “Counting out the bills makes you think about whether what you’re buying is a want or a need. Most people no longer know the difference,” one 93-year-old fellow told me.

Remember that all things are cyclical. They’ve seen enough of life’s ebbs and flows not to get overly excited. “Sit back, be patient and put the guns away,” said one 89-year-old. Added another, who’s 104: The way to get rich quick is to not be in a hurry to get rich quick. That’s how most people lose money.”

Broaden your definition of wealth: The wisest advice of all, I thought, came from a gentleman who just turned 96. He told he this: “I’m one of the wealthiest men you’ll ever meet. To find happiness in your work like I did is a great endowment. To find enlightenment through education like I did is another. To have a good home, fine children and a wonderful wife like I had for 57 years are three more. And I could go on. I am a rich man because I have an endowment that money can’t buy. In fact, I think most men are much wealthier than they realize.”

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