Almighty Dad | A stay at home dad blog

There are risk takers and there are those who play it safe.  It’s my belief that we are, to some degree, pre-programmed to be one or the other.  Within these two broad categories there are two more varieties of people.  It may come as a surprise that being a risk taker does not necessarily preclude us from being responsible.  Likewise, desiring security does not by its nature make people responsible.  I know we are told that to be responsible we should save up to buy a house, work a regular job, and budget for our children’s college.  I disagree.  I am, by nature, a risk taker, and I want my kids to be risk takers too.  My problem has been that, in addition to being entrepreneurial, I have been irresponsible.  I’d like my kids to have the best of both worlds as I see it, to be entrepreneurial and responsible.  There is nothing wrong with taking the safe route through life.  Lots of people find justifiable comfort in that approach.  Their version of success is to make it through life without any big mishap.  That’s a pretty decent reward, to not get too badly hurt.  The down side is that there is no big payoff.  Let’s talk about responsibility.

The Entrepreneur

Kids don’t typically know anything about money.  They waste it and they lose it.  As a parent I want to teach them to invest it and make good decisions.  I haven’t had a lot of success with money, but that doesn’t mean I can’t teach them anything.  At the very least I can teach them what not to do.  The first lesson of entrepreneurship is to treat every dollar as if it’s your last.  That means when you look at a dollar you have to think about how to make it into more dollars, not how to spend it.  If spending it will make more dollars then that’s a wise decision, if it has no return on investment then it is a waste.  Factors to incorporate into decision making and lessons to teach my kids are as follows:

1. Time – You must know what your time is worth. Buying a dishwasher might seem like a waste of money to some people.  But if your time is worth 50 dollars an hour then it suddenly turns into a money maker.  If you are making money instead of washing dishes then it’s a good purchase.  If you are not making money instead of washing dishes then possibly it’s worth washing the dishes by hand.  But then there is effort.

2. Effort – It’s related to the time question.  Will performing a task expend more energy than the return is worth?  If I have a garage sale and spend all day in the yard in the sun but only make 50 bucks, was that worthwhile?  It might be if the alternative is that I make nothing.  What about being too tired the next day to make money?  Will wearing myself out today hurt my efforts tomorrow?  Good question.

3. Fluctuation – You must plan for down time.  A good friend of mine owns Adam’s Polishes, a premium car care product company.  He learned a long time ago that the car care business is seasonal.  He has to budget throughout the year so that when winter comes he makes it to spring (much like a hibernating bear).  He would never spend money at a time when his return will be minimal.  Bad entrepreneurs see profit as a line forever sloping upwards.  It’s not pessimistic to be wise.

4. Get Smart – People will rip you off if given a chance.  There’s a show on TV called Pawn Stars.  The guys aren’t necessarily looking to rip people off, but it is in their best interest to pay as little as possible for an item and then sell it for as much as they can.  They can only do that by being informed.  If the seller is not informed about what they are selling then shame on them.  I find it amazing how many people seem to throw away money simply because they are ill-informed.  Don’t be that person (I’ve been that person before).

Being an entrepreneur can be a family affair. We used to run a martial arts studio but, because of some poor financial decision, we were forced to sell it.  That experience may seem like a failure, but failures can also be learning experiences.  My dream is to run a business with my sons, and that previous failure has taught me valuable lessons for the future.  I’ll have more confidence the next time I give it a try.  I have never owned a house or saved a penny towards my sons’ educational expenses.  It’s not because I’m irresponsible, it’s because I know my money is better spent in other places right now.  I choose not to take the safe rout because I have faith that I’m capable of making my dreams come true.  I have a plan and I’m implementing my plan.  I make mistakes and lots of them.  I’ve also had successes.  Each time I come crashing down (which has happened quite a few times) I get up and try again.  Playing it safe works for some people, not for me.  But, taking risks and failing does not make me irresponsible or any less of a parent.  There is no rule that says we all must live in the suburbs, drive mini-vans (no offense to Real men drive minivans) and get stuck in traffic every day on our way to work.  Some of us lose sleep not by wondering how to deal with our bosses the next day but by wondering how we’re going to make a buck the next day.  It’s all a trade off.  We’re all one or the other.

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