A Rainy Day

When I turned 20 a friend of my family gave me some advice. We were sitting at a family barbecue and just talking. I was about ready to move out on my own. I had a job and was moving across the country to California. I would be on my own for the first time in my life. I was working and living at home. I was paying off some bills and obligations. This gentleman was a great family friend. We had known Charlie and his wife for ten years and he had watched my brothers and sisters and I all grow up. But now I had the opportunity to go out on my own.

Charlie was an older gentleman who had been working for a great many years. I think he was almost ready to retire then. This was thirty years ago. I remember his advice like it was yesterday. It was the best advice I had ever been given. Too bad it took me 15 years to take it. Charlie told me that no matter how much money I make or don’t make, "Pay yourself first". Charlie said that that could take many different forms. But the most important thing was to "pay yourself first."

That advice was always in the back of my mind as I packed all my belongings in the back of my Ford pickup and moved to Lake Tahoe. I found a nice little motel room that I could rent by the month. I think the rent was $155 a month. I had bought my truck from a dealer and was paying about $120 a month on the payment. I was making $5 bucks an hour for a full-time job but I wasn’t too sure what I could afford. I had maybe $600 in my pocket. I had to make expenses each month. And I had to have money left over to live. I WAS living in Lake Tahoe. "Pay yourself first." Very good advice.

After six months in Tahoe I had made enough friends to find a couple of roommates. We moved into a house together and I started saving money. I eventually saved enough money to go back to college. I could save money when I had a distinct goal in mind but saving on a regular basis for a rainy day, that was a different story.

I have tried to convince my children that saving for a rainy day is the best thing to do but I don’t know if it has sunk in. I told my daughter when she started working that she should save a little bit of every pay check. I think I used the words "pay yourself first". But todays world is an expensive place. Even the price of gas eats up most of her paycheck. I know she is managing to save some money, though.

I give my son money to take care of the yard. From the looks of the yard you would think I am saving money. I have to get on his case several times before the rake moves from the garage but he does ok. He does his chores and he gets compensated for it. He wants a new skateboard and I think he is saving up for a banjo (of all things). He may get there.

I have learned to save for a "rainy day". I am now saving for retirement. I am paying myself first. I am very thankful that it is was made easier with all the IRA’s and 401k’s out there now. And the auto deductions from work are fantastic. The only thing that worries me is that I hope my retirement is not really rainy days. Please throw some sunshine in there too.

Thanks Charlie.

David