Plant Your Financial Tree
July 21, 2009 by: Dave Ozment 
According to an ancient Chinese Proverb, “The best time to plant a tree is 20 years ago. The second best time is now.”
I find that to be a compelling message. And one that lends itself to the world of personal finance. One only need imagine the line “the best time to pay-off debt, or start saving for retirement…” to identify the fit.
Several months ago, I was watching an episode of the Dave Ramsey television show. He was doing a special on the second half of his “live like no one else so later you can live like no one else” mantra. He was dedicating the show to callers who were debt free and prospering financially. I wanted to find it motivating as I tried to imagine myself as one of these callers one day, but I struggled in so literally comparing their circumstances with mine – the ages, debt loads, and wealth levels didn’t align. I could never be one of those callers.
But then a funny thing happened, either by masterful production or divine intervention a clear trend emerged among 3 consecutive callers.
Each individual’s specific details varied to some degree but suffice it to say each shared 3 unique (and highly desirable) markers.
- 100% debt free – including mortgages
- $1 million net worth – at least
- Cash saved for ‘life events” – college, retirement, emergencies, vacations, etc
The first caller was roughly 35 years old and I have to admit a tinge of jealously in hearing of this type of success at such an early age. Having already surpassed that age, I’ll never be “that guy”. But in hearing his story – little debt out of college and 12 years of hard work and saving I realized how proud I’d be if he were my child… and I realized that may, one day, be possible.
The second caller was roughly 45 years old and I paused a moment longer trying to squeeze my foot into his shoe. Hmm, a mental survey of my debt and age and income… it was at least plausible if not entirely practical – the window was simply too small.
The third caller was roughly 55 years old and either by the want of my ear or the sound of his voice, he seemed the happiest and most satisfied with his lot. Ooooh, now we’re talking. A quick thumb-in-the-air estimating exercise…. My age, income, debt, mortgage… hmm, I think I can be that guy one day.
Or course the next morning – in true budget nerd fashion – I started building a spreadsheet model. My assumptions were loose but in no way reckless and the final calculations were brilliant. With some luck and lots of discipline the freshly crunched numbers revealed a compelling story. While we all vaguely dream of a $1 million net worth, I now had a path complete with milestones and action plans. I can do it and now I know exactly how.
Sure, it’s easy to simply wish the tree had been planted many years ago so I could bask in its shade now but that’s simple-minded too. Now I see the seed and shovel and can envision the shade. So let’s get to digging.
Photo By: Taymaz Valley
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Very, very interesting post.
Thank you!
Thanks!
I love this article! My favorite part is how you related the topic to the TV show you were watching where he said, “live like no one else so later you can live like no one else”. That quote is so awesome, but it is so true and powerful. I really enjoyed reading this and it inspired me to go out to kick some butt and take names. I am going to pass this along to some of my buddies and I look forward to reading some more great stuff from you, keep up the good work man!
Talk to you soon!
Whitney Segura
Thanks Whitney, I appreciate your comments and encouragement. I’m glad you enjoyed the article.
Dave
I went ahead and planted yesterday, and am going to plant again today too…tomorrow seems like it might make sense also. Great article, and REALLY cool picture! Peace out.
Brandon´s last blog ..Financial Goals Are Not Achieved Overnight
Thanks TAM… plant early and often, that’s a plan.
Nice post, Dave. With your well laid out plan… and of course, Discipline (why is it so hard to swallow that word?) – You will make great strides.
There is nothing wrong with a little Self-Help guidance to boost the ego for a great cause. Keep us abroad with your progress.
*feeling pumped up* Now I am gonna to skillfully comb my budget!
Money Funk´s last blog ..8 Ways to Make Huge Savings in Your Budget
Thanks MF… discipline is an interesting word. I find when I’m under its influence that it gives me confidence and power and when not, the thought of it makes me cringe… that’s something.
Yeah, I’ll have to elaborate on my plan and progress… I’ll put some thought as to how to best present that material.
Thanks,
Dave
Thanks for sharing such great post, it will surly help many people who want such great info about investments. According to me financial planning is very much essential for all so all should start planning for that, it will surely help you to secure your future.
Lately, I’ve been thinking a lot about my finances and where I’d like them to be. I too thought wow I could have done things so differently, and how much better I’d be right now. But, the good news is that there room to change and as you said, start digging! And that’s what I’ve started doing too
Instead of thinking “I wish I could have that success”, I know I can have that success. Thanks for sharing!
There’s a great quote I have written down but I don’t recall who said it… Warren Buffett perhaps… the quote –
“a year from now you’ll wish you had started today”
Wow, that’s strong and so true.
Dave
Great article! Your best in a while I might say.
Thanks, …. I think. Just kidding, I really enjoyed the process behind this article. I watched that Ramsey episode many many months ago and I really did take action as I indicated. Then a few days ago I stumble upon that Proverb again and wham-o, a pretty compelling (if I say so myself) article pops out. Items like this are the most fun because they are so real and so organic. I’m glad to see when that comes across to you guys.
Dave
It really is a profound proverb, and has actually stuck with me. I’m considering using it as the premise of an article of my own. You know you’ve written something good if it sticks with a person for more than the moment they are reading it! Great job!
steven@hundredgoals.com´s last blog ..How to Quit a Job