Money Monday: What’s The Best Piece of Financial Advice You’ve Ever Received?

by Dr. Charles Alonzo Peters

Long before the country had ever heard of Katrina, I visited New Orleans for a convention of black physicians. A student at the time, I was looking to solicit financial support for my organization that mentored minority youth.

As night descended over the southern sky, I struck up a conversation with an older gentlemen, a physician who happened to be attending the same conference.

We shared a cab into the city. I told him about my organization and how we were teaching young high school students about safe sex, violence prevention, and college preparation. I explained my plans to solicit financial support from the doctors at the conference.

The older gentleman was very attentive, but then in a low voice he leaned over and said, “Good luck.” After a slight pause he added, “most Black doctors are broke.” He then peered into my eyes as if to say, “do you understand what I’m telling you?”

I’ll admit it wasn’t until years later that I fully comprehended his implicit advice. But, it’s probably one of the most important pieces of advice I’ve ever received.

As young kids we’re told to study hard, work hard, and get a good job. That’s the American Dream. But the part they don’t tell us is, spend less than you make, and use what’s left over to create wealth.

You see, America aims to make us all perpetual slaves, forever working harder and harder to keep up on the treadmill of consumerism. She’s always offering something bigger, something better to swallow up our money – a newer car, a bigger house, the latest electronic gear, the baddest shoes.

Before you know it, we’re spending every cent we’ve earned. And it all seems normal, because everyone else is doing the same thing.

From the janitor to the physician, the secretary to the businesswoman, our lifestyles expand to consume our salaries.

As soon as we get more money, “no-name” clothes and shoes become Manolo Blahnik, Marc Jacobs, and Jimmy Choo. Home made mac-n-cheese turns into fine restaurant dining. Basketball with the boys morphs into an expensive day on the golf greens. The Honda Civic turns into the Honda Accord before becoming the Lexus ES.

This is how the American Dream turns into the Great American Trap, dooming even the highest income earners amongst us. And we continually tell ourselves, “If only I had more money, things would be better.” Ironically more money will never be enough until we learn to live on less than we make now.

My cab companion those many years ago was trying to tell me that despite their high income, many of his physician friends were so busy living the “doctor life” that they had never created any real wealth. There was no money left over for it.

The art of living easily as to money is to pitch your scale of living one degree below your means. – Sir Henry Taylor

Yes, he was implicitly warning me, it’s not how much you make that matters, it’s how much you keep that counts.

So BMWK,  what’s the best money advice you’ve ever received?

About the author

Alonzo Peters is founder of MochaMoney.com, a personal finance website dedicated to helping Black America achieve financial independence.

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