Hints for Those That Would Be Rich
[October, 1736—From Poor Richard, 1737]
The Use of Money is all the Advantage there is in having Money.
For £6 a Year you may have the Use of £100 if you are a Man of known Prudence and Honesty.
He that spends a Groat a day idly, spends idly above £6 a year, which is the Price of using £100.
He that wastes idly a Groat's worth of his Time per Day, one Day with another, wastes the Privilege of using £100 each Day.
He that idly loses 5s. worth of time, loses 5s. and might as prudently throw 5s. in the River.
He that loses 5s. not only loses that Sum, but all the Advantage that might be made by turning it in Dealing, which, by the time that a young Man becomes old, amounts to a comfortable Bag of Money.
Again, He that sells upon Credit, asks a Price for what he sells equivalent to the Principal and Interest of his Money for the Time he is like to be kept out of it: therefore He that buys upon Credit, pays Interest for what he buys. And he that pays ready Money, might let that Money out to Use; so that He that possesses any Thing he has bought, pays Interest for the Use of it.
Consider then when you are tempted to buy any unnecessary Householdstuff, or any superfluous thing, whether you will be willing to pay Interest, and Interest upon Interest for it as long as you live; and more if it grows worse by using.
Yet, in buying goods, 'tis best to pay Ready Money, because, He that sells upon Credit, expects to lose 5 per Cent by bad Debts; therefore he charges, on all he sells upon Credit, an Advance that shall make up for that Deficiency.
Those who pay for what they buy upon Credit, pay their Share of this Advance.
He that pays ready Money, escapes or may escape that Charge.
A Penny sav'd is Twopence clear,
A Pin a Day is a Groat a Year.