Willard D. Holt, M.D., 33°

Financial security is no guarantee of a stable family, but financial insecurity often guarantees an unstable one.

In the 1950s, 60s and 70s, a family doctor like myself in a small town was called on for more than medical advice. When you have practiced long enough to be at the birth of the grandchildren of the first babies you helped into the world, families come to you with many problems, especially marital and family problems.

Before long, it became clear that many, perhaps most, of the problems tearing families apart were financial. When a father and mother know they are reasonably financially secure, they can face most things. When they are worried about where the next month's rent or mortgage payment will come from, or whether they can give their children the things they need, there is a underlying tension which never goes away and which puts a shaky foundation under the whole family. Financial security is no guarantee of a stable family, but financial insecurity is often a guarantee of an unstable one.

Over the years, I've learned certain principles of financial security. There is nothing radical or surprising about them, but I have found out that many young people don't know them. One advantage of being an old family doctor is that you can speak bluntly about things without sugar coating. So, bluntly, here are the principles.

• Unless you die young, you are going to have to retire. Start planning for that from your first job. It not only gives you security for the future, it builds a resource in case of emergency.
• Don't count on our mutual Uncle (Sam) to take care of you. You can only be secure if you can take care of yourself.
• Social Security and Medicare are not enough and will not be enough.
• As soon as possible (20 years old is not too young), take out a small insurance policy. Buy a term policy with a guaranteed conversion to ordinary life at a later date, and with a provision which allows you to increase the coverage. I saw too many young families whose father died, leaving them to struggle without any protection. Add to it whenever you comfortably can.
• Remember Bro. Ben Franklin's admonition that "a part of all you earn is yours to keep." Start saving at once. Save at least 10¢ out of every $1 you earn. That isn't always easy, but it's essential. It's better to have others paying you interest than for you to be paying them.
• Do not spend more than you make, no matter how little it is. Beware of credit. It looks so easy, and it's a trap for almost everyone.
• Never quit a job until you have a better one for sure. It's easy to get mad and quit; it's easy to feel oppressed and think you'll find something better. Don't quit until that better job is in hand.
• Get a college degree if possible, even if it takes years and you have to do it a couple of night courses at a time. It makes you a better person, and it makes you richer, too.
• Watch the amount you pay in rent. Many people rent houses for more than they can really afford. Better a small house in a less desirable neighborhood than having to worry each month about how to make the payment.
• Budget sanely. Many people budget their entire income; then there is no pad if income drops. It will often mean putting things off or doing without, but that's better than constant worrying.
• You will need a car. Buy one second hand when you can afford it. Until then, ride public transportation.
• Live on what you earn, no matter how little it is, and take any income from investments and reinvest it. Start investing as soon as you can. Use your savings account as a way to accumulate money, then take the money and start investing. If you're not sure how to invest, use a good mutual fund and let it do the work. You will make a little less, but you risk a lot less. When you're ready to invest for yourself, put most of your money in the stocks of companies which make things people have to have—utilities, services, and the like.
• Stick to the budget. If people say you are "tight," don't worry. The tight people usually have the money.
• This sounds cold, but it is important—don't have more children than you can afford. I saw many families in which an additional child took them from financial security to financial trouble. Children are wonderful, but they are expensive.
• Do not go into a business you don't understand, and don't loan money to friends. Regard any loan made to a friend as a gift. If you get it back, that's great. If you don't, don't get bitter.

Lots of things go into making up a family. I value the love, the trust, the mutual experiences, the sharing. And all of them are better, safer, and more secure when you have family financial security.

Dr. Willard D. Holt served for many years on the Advisory Conference of the Guthrie Scottish Rite Temple. Commander of Kadosh from 1963 to 1966, he acted in and directed many of the Degrees, and served on many special committees of the Temple including the Building Committee and the Finance Committee. He was a member of the Shrine, the Camel Herders, and the Royal Order of Jesters. Born in Olustee, Oklahoma, he practiced medicine in Altus, Oklahoma, for several decades. A few days after writing this article and shortly before his 90th Birthday, Dr. Holt laid down his working tools for a final time on this earth.