The third Monday of each February marks President’s Day.  Below are three life and financial lessons exemplified by George Washington, Thomas Jefferson, and Abraham Lincoln.

George Washington: Use Debt Wisely

In his presidential farewell speech, Washington cautioned against the frequent use of credit, stating that one method of preserving public credit is “to use it as sparingly as possible… but remembering also that timely disbursements to prepare for danger frequently prevent much greater disbursements to repel it…” ¹

This quote makes the case for a solid Emergency Fund.  An Emergency Fund will help protect you and your family against unplanned events and offer income assistance during tough economic conditions. This account should remain set aside for emergencies only and kept separate from regularly used accounts.  Please make sure the funds are readily available, and look at your Emergency Fund as lifestyle insurance rather than an investment. 

Thomas Jefferson: Live Within Your Means

Not all U.S. presidents have presented a good example of financial stewardship—some, like Thomas Jefferson, struggled with debt throughout their lives. At the time of his death, Jefferson owed more than $100,000 to creditors or $2 million in today’s dollars.² But these struggles may provide their own lessons:

• Avoid lifestyle creep, and don’t assume that a healthy income last forever.
• Save for big ticket items, outside of buying a home, in advance.
• Reread our article on Buying A Home to put yourself in a good financial position with the largest purchase most families will ever make.

Abraham Lincoln: Seek Out Contrary Opinions

Abraham Lincoln was one of the most controversial leaders of his time and was well-known for seeking out opinions of those who disagreed with him. In fact, Lincoln’s first presidential Cabinet included two of his rivals for the 1860 presidential nomination.³

Surrounding yourself with people who are inclined to agree with you could leave you without a full perspective. By getting advice and perspectives from multiple sources, you have a broader view of the issues facing you and may be able to formulate some outside-the-box solutions.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

¹ https://www.ourdocuments.gov/doc.php?flash=false&doc=15&page=transcript

² https://www.consumercredit.com/blog/presidential-debt-thomas-jefferson/

³ https://theconversation.com/3-crisis-leadership-lessons-from-abraham-lincoln-136794

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