Joe Sangl has continued his series on managing your money. Relating it to farming is an angle for this series and he makes it simple to understand.
Rule #2: Sow Some Seed
You better plant something if you want something to harvest, he says. Discussing corn kernels is his way of explaining it. If you don’t plant them in the spring, you won’t be able to harvest them in the fall.
Here are the similarities when it comes to your finances.
Being stingy with seed leads to a poor crop. Seems pretty common sense to me. If you’d rather not have any money (which sounds silly) then don’t save. Don’t invest in anything and Joe says you’ll have a poor crop.
Some seeds will be eaten or rot. In his explanation he says you can coat the seeds with pesticides and other poisons, but some seeds will still be eaten. Others will rot and not germinate.
If enough is planted, an abundant harvest will appear before you. Make sure you plant enough seed and it will lead to great harvesting. Think about the future.
Just one seed has the ability to produce hundreds or thousands more seeds. Think about the harvest that will bring.
Now he puts it in more solid, financial terms. Are you investing in a 401(k)? Are you putting some in a savings account at your bank for something you want to do in the future? Are you investing in different things such as stocks, bonds, real estate, small businesses or other ways to grow your money. Don’t be afraid to be a bit aggressive, especially if you are young.
Sangl tries to provide real world advice when it comes to handling your money. We all could use some encouragement even though it’s tough to think about saving when you are living paycheck to paycheck. Just take a little bit at time and see the benefits.