The Money Tree
On April 1, 1957 the BBC ran a three-minute report showing the spaghetti tree harvest taking place in
Switzerland. Spaghetti wasn’t a common noodle at the time and many in the United Kingdom had no familiarity with making or baking with the product. Hundreds of viewers called the BBC to ask about growing their own tree. In 2009, CNN dubbed it the, “biggest hoax that any reputable news establishment ever pulled.”
If you haven’t figured it out by now, spaghetti can’t grow on trees.
In the same spirit of good humor, let me share with you the marvelous money tree in our backyard.
Every morning it blooms anew with ample cash to spend however we want. There are extra blooming Benjamin Franklins each month when the mortgage is due. U.S. Grant smiles down on us each Friday when we think about going out to dinner. We have so much that our children use soapy Abraham Lincolns to clean off the grime in the bath.
Hopefully you do not fall for this fateful tall tale on April 1, 2022. Your grandmother was right when she told you to mind your pennies, “for money doesn’t grow on trees.” In fact, the very value in money comes from its scarcity. In 2008 Zimbabwe found out what happens when you flood the market with money, creating hyperinflation which caused the price of one newspaper, like the one you are reading right now, to skyrocket to $25 billion.
In many ways it is good that there are no money trees.
That means, however, that we must be prudent stewards of the limited resources we have. When you buy an iPhone instead of paying the rent, or take a vacation instead of settling debts, you can’t beg the tree for more to cover your misstep.
The United Way put out a good article, “Tips for Prioritizing Monthly Expenses,” which identified the steps one should consider taking as they evaluate how to use the dollars coming in. They first suggest making
a list of your expenses. This will help you build a budget, and it will highlight any expenses that may be out-of-hand or expendable. Certain expenses are musts: shelter, utilities, insurance, medical, debt, food and so on. Even in these, which they call “must pay”, you will find wiggle room. For example, consider how adjustments to the thermostat might affect monthly utilities.
It generally is a poor decision to pay nothing on monthly debt. If the budget is tight, there may be options to lessen your monthly debt load, but don’t skip it. If you are really struggling to make your debt payments, talk with your lenders and see if there is a workable solution.
Money doesn’t grow on trees any more than spaghetti, but with hard work, prudent prioritization, and bit of savvy savings you can make your own money tree produce benefits for you far into the future.
Joshua Riggins is the president of Farmers & Mechanics Federal Bank in Bloomfield, and is committed to providing customers with a reliable and competent banking experience.
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