With keen wit and patient wisdom, pundits from the past and present have shown an amazing ability to reveal the essence of good personal financial planning in their public remarks and published works. Through it all, it’s clear that the “basics” of money management — getting it, keeping it, growing it, spending it wisely – haven’t changed a lot over the centuries.

“More people should learn to tell their dollars where to go instead of asking them where they went.”
— Roger Babson

A number of experts — from notable mutual fund companies to the best-selling, ladies investment club authors from Beardstown, Ill. — have condensed this renowned statistician’s thought to “Pay yourself first.” The idea is to regard your financial future as an ongoing obligation that’s equally — or more — important than monthly bills, such as a mortgage or car payment. Your resources should be directed by, for and toward you and those you care about.

“Better a steady dime than a rare dollar.”
— Anonymous

Somebody should seize credit for this adage that extends the common sense in “paying yourself first” to paying yourself regularly, even if it’s less than a colossal amount. Typically, the well-funded “nest-egg” is built with a few dollars today, a few dollars tomorrow and a few dollars the day after that. Waiting for a “windfall” to start saving too often nets only the waiting.

When asked what is the greatest miracle known to man… “Compounding.”
— Albert Einstein

An interesting answer from the father of quantum physics. But to get earnings on your money today, and then get earnings on those earnings tomorrow, is a more applicable reality than E=MC2. In reaching this conclusion, Einstein might have been inspired — not that he needed the help — by another American genius, Benjamin Franklin. His Time is money, and A penny saved, is a penny earned, most surely speak to the “miracle” of compounding.

But remarkable financial insight that spans the ages, one would be hard-pressed to beat this adage from a founding father:
“Necessity never made a good bargain.”
— Benjamin Franklin

And remember, Franklin said it before there were credit cards. The widespread availability and acceptance of plastic undoubtedly causes today’s consumers to define “necessity” a lot differently than it was defined in 1776. No matter how much we may think we need something, or how good a “deal” the purchase price, paying with a high-interest credit card virtually ensures the truth in Franklin’s quote: it’s not a good bargain.

“Genius is only a greater aptitude for patience.”
— Comte de Buffon

The philosopher said it in the late 18th century, but it’s an apt way to describe “genius” investors who (not being geniuses at all) simply have had the patience to “wait out” stock market downturns and thus stay positioned to take advantage of even stronger comebacks. Though past stock market performance doesn’t guarantee future results, “stick-to-itiveness” can be an important trait to achieve financial success. If you’ve invested for the long-term, let the long-term unfold. It’s not about winning the lottery, it’s about establishing a personal financial plan… and sticking to it.

“When I was young, I used to think that money was the most important thing in life; now that I am old, I know it is.”
— Oscar Wilde

An impertinent twist on the proverbial “Money isn’t everything” from the Anglo-Irish author known for impertinence. But if youth is wasted on the young, it shouldn’t be wasted by the young. Setting goals is a crucial part of financial planning for persons of all ages; a comfortable retirement is just one of them.

“Put money in thy purse. “
– William Shakespeare From Othello

In adhering to the master’s advice, you must — today — establish a solid financial plan, one with clear short-and long-term objectives, one that allows you to “pay yourself first, “and in amounts that are reasonable.And, you must resolve to stick to your plan because, in the words of Woody Allen:

“Money is better than poverty, if only for financial reasons.”

Submitted by Don Soderquist of Waddell & Reed offices in Silverdale. Don may be reached at (360) 692-0980 or wrsilverdale@msn.com.