The Young Man's Guide by William Andrus Alcott (reading strategies book .TXT) 📕

It is an important point never to buy what you do not want. Many people buy an article merely because it is cheap, and they can have credit. It is true they imagine they shall want it at some future time, or can sell it again to advantage. But they would not buy at present, if it cost them cash, from their pockets. The mischief is that when the day of payment is distant, the cost seems more trifling than it really is. Franklin's advice is in point; 'Buy what thou hast no need of, and ere long thou shalt sell thy necessaries;'—and such persons would do well to remember it.

The difference between credit and ready money is very great. Innumerable things are not bought at all with ready money, which would be bought in case of trust; so much easier, is it, to order a thing than to pay for it. A future day, a day of payment must come, to be sure; but that is little thought of at the time. But if the money were to be drawn out the moment the thing was received or offered, these questions would arise; Can I not do without it? Is it indispensable? And if I do not buy it, shall I suffer a loss or injury greater in amount than the cost of the thing? If these questions were put, every time we make a purchase, we should seldom hear of those suicides which disgrace this country, and the old world still more.

I am aware that it will be said, and very truly, that the concerns of merchants, the purchasing of great estates, and various other large transactions, cannot be carried on in this manner; but these are rare exceptions to the rule. And even in these cases, there might be much less of bills and bonds, and all the sources of litigation, than there now is. But in the every day business of life, in transactions with the butcher, the baker, the tailor, the shoemaker, what excuse can there be for pleading the example of the merchant, who carries on his work by ships and exchanges?

A certain young man, on being requested to keep an account of all he received and expended, answered that his business was not to keep account books: that he was sure not to make a mistake as to his income; and that as to his expenditure, the purse that held his money, would be an infallible guide, for he never bought any thing that he did not immediately pay for. I do not mean to recommend to young men not to keep written accounts, for as the world is, I deem it indispensable.

Few, it is believed, will deny that they generally pay, for the same article, a fourth part more, in the case of trust, than in that of ready money. Suppose now, the baker, butcher, tailor, and shoemaker, receive from you $400 a year. Now, if you multiply the $100 you lose, by not paying ready money, by 20, you will find that at the end of twenty years, you have a loss of $2,000, besides the accumulated interest.

The fathers of the English church, forbade selling on trust at a higher price than for ready money, which was the same thing in effect as to forbid trust; and this was doubtless one of the great objects those wise and pious men had in view; for they were fathers in legislation and morals, as well as in religion. But we of the present age, seem to have grown wiser than they, and not only make a difference in the price, regulated by the difference in the mode of payment, but no one is expected to do otherwise. We are not only allowed to charge something for the use of the money, but something additional for the risk of the loss which may frequently arise,—and most frequently does arise—from the misfortunes of those to whom we thus assign our goods on trust.

The man, therefore, who purchases on trust, not only pays for being credited, but he also pays his share of what the tradesman loses by his general practice of selling upon trust; and after all, he is not so good a customer as the man who purchases cheaply with ready money. His name, indeed, is in the tradesman's book, but with that name the tradesman cannot buy a fresh supply of goods.

Infinite, almost, are the ways in which people lose by this sort of dealing. Domestics sometimes go and order things not wanted at all; at other times more than is wanted. All this would be obviated by purchasing with ready money; for whether through the hands of the party himself, or those of some other person, there would always be an actual counting out of the money. Somebody would see the thing bought, and the money paid. And as the master would give the steward or housekeeper a purse of money at the time, he would see the money too, would set a proper value upon it, and would just desire to know upon what it had been expended.

Every man, who purchases for ready money, will naturally make the amount of the purchase as low as possible, in proportion to his means. This care and frugality will make an addition to his means; and therefore, at the end of his life, he will have a great deal more to spend, and still be as rich as if he had been trusted all his days. In addition to this, he will eat, and drink, and sleep in peace, and avoid all the endless papers, and writings, and receipts, and bills, and disputes, and lawsuits, inseparable from the credit system.

This is by no means intended as a lesson of stinginess, nor is it any part of my purpose to inculcate the plan of heaping up money. But purchasing with ready money really gives you more money to purchase with; you can afford to have a greater quantity and variety of enjoyments. In the town, it will tend to hasten your pace along the streets, for the temptation at the windows is answered in a moment by clapping your hand upon your pocket; and the question; 'Do I really want it?' is sure to recur immediately; because the touch of the money will put the thought into your mind.

Now supposing you to have a fortune, even beyond your actual wants, would not the money which you might save in this way, be very well applied in acts of real benevolence? Can you walk or ride a mile, in the city or country, or go to half a dozen houses; or in fact can you open your eyes without seeing some human being, born in the same country with yourself, and who, on that account alone, has some claim upon your good wishes and your charity? Can you, if you would, avoid seeing one person, if no more, to whom even a small portion of your annual savings would convey gladness of heart? Your own feelings will suggest the answer.

Section VII. Of entrusting Business to others.

'If you wish to have your business done, go; if not, send.' This is an old maxim; and one which is no less true than old. Every young man, on setting out in the world, should make it a rule, never to trust any thing of consequence to another, which he can, without too much difficulty, perform himself.

1. Because, let a person have my interest ever so much at heart, I am sure I regard it more myself.

2. Nothing is more difficult than to know, in all cases, the characters of those we confide in. How can we expect to understand the characters of others, when we scarcely know our own? Which of us can know, positively, that he shall never be guilty of another vice or weakness, or yield to another temptation, and thus forfeit public confidence? Who, then, will needlessly trust another, when he can hardly be sure of himself?

3. No substitute we can employ, can understand our business as well as ourselves.

4. We can change our measures according to changing circumstances; which gives us those opportunities of doing things in the best way, of which another will not feel justified in availing himself.

As for dependants of every kind, it should ever be remembered that their master's interest sometimes possesses only the second place in their hearts. Self-love, with such, will be the ruling principle of action; and no fidelity whatever will prevent a person from bestowing a good deal of thought upon his own concerns. But this must, of necessity, break in more or less upon his diligence in consulting the interest of his employers. How men of business can venture, as they sometimes do, to trust concerns of great importance, for half of every week in the year, (which is half the whole year) to dependants, and thus expect others to take care of their business, when they will not be at the trouble of minding it themselves, is to me inconceivable! Nor does the detection, from time to time, of fraud in such persons, seem at all to diminish this practice.

There is a maxim among business people, 'never to do that for themselves which they can pay another for doing.' This, though true to a certain extent, is liable to abuse. If every body, without discrimination, could be safely trusted, the maxim might be more just; since nothing is more obvious than that laborers are often at hand, whose time can be bought for a much less sum of money than you would yourself earn in the meantime. I have often known people make or mend little pieces of furniture, implements of their occupations, &c. to save expense, when they could have earned, at their labor during the same time, twice the sum necessary to pay a trusty and excellent workman for doing it.

But, as I have already observed, persons are not always at hand, in whom you can confide; so that the certainty of having a thing done right, is worth much more than the loss of a little time. Besides, God has never said how much we must do in this world. We are indeed to do all we can, and at the same time do it well; but how much that is, we must judge. He is not necessarily the most useful man who does even the greatest amount of good;—but he who does the most good, attended with the least evil.

But we should remember that what others do, is not done by ourselves. Still, an individual may often do many little things without any hindrance to his main object. For example, I would not thank a person to make or mend my pen, or shave me; because I can write as much, or perform as much business of any kind, in a week or month—probably more—if I stop to mend my pens, shave myself daily, make fires, saw and split wood, &c. as if I do not. And the same is true of a thousand other things.

Section VIII. Over Trading.

I have already classed this among the frauds into which business men are in danger of falling; and I cannot but think its character will be pretty well established by what follows.

Over trading is an error into which many industrious, and active young men are apt to run, from a desire of getting rich more rapidly than they are able to do with a smaller business. And yet profusion itself is not more dangerous. Indeed, I question whether idleness brings more people to ruin than over trading.

This subject is intimately connected with credit, for it is the credit system that gives such facilities to over trading. But of the evils of credit I have treated fully elsewhere I will only add, under this head, a