Mom and Dad were right regarding money

From my parents I heard, “Money is the root of all evil,” “What you give away is more important than what you keep,” “Money inflates self-worth,” “Money gets you into the front door of a job but does not have the power to keep you there,” and “God should get the first 10 percent of everything you make.”

From a series of financial advisers (some of whom are selling athletic shoes today) I heard, “Mutual funds are the only safe way to take advantage of Wall Street,” “You are too busy to follow your investments … that is what you are paying me to do,” “Diversification is the name of the investment game,” “Buy and hold because you are taking the long view,” “Speculation is of the Devil” and “You will thank me 30 years from now.”

We need to get this straight right now. I respect the professionalism and insight of financial advisers and investment counselors. I have three of them who watch over my limited resources. They are smart, ethical, and they are my friends.

At the same time, in my mature 50s, I have discovered that the one area of living where we have been dumbed-down by this society is how to intelligently handle our finances.

Think about it. We will not allow a teenager to graduate from high school without knowing how to drive a car, how to navigate the keyboard of a computer and how to open a combination lock on a hall locker.

Where do we teach our children how to build a weekly budget, how to systematically save and how to read the little itty bitty numbers on the newspaper stock page?

If the only financial competence we are expecting from our children is what convenience store has the lowest price for a six-pack and how late a mortgage payment can be before someone comes looking for it, we are in trouble.

Have you noticed we are in trouble?

The majority of us have not saved enough for retirement, credit card debt is at staggering numbers and bankruptcies are on the rise again.

We need to question some of the messages we have heard from the financial mavens who have populated our pockets.

First, “Mutual funds ares the only safe way to take advantage of Wall Street.”

Is there anyone reading these words who lost as much money as I did in March 2000? I would like to tell you that I gained all of that money back five years later. In your dreams.

Mutual funds are a component of good money management but not always the “safe harbor” we were sold.

The premise of mutual funds is to minimize risk by owning a little of 100 different stocks.

Historically, investing on Wall Street does bring better returns than putting your money in fixed-return investments. So, instead of a mutual fund, if you are believer in the stock market, buy an “index fund.” An index fund goes up or down depending on how the entire stock market fluctuates. And, you can buy an index fund without the aid of a financial adviser. The costs are minimal.

Second, “You are too busy to follow your investments … that is what you are paying me to do.”

You know what, I’m busy, you’re busy, we’re all busy. But we always make time for what we want to do.

I believe all of us are capable of taking 10 minutes every day to review our investments, read an article on an emerging company and go online to check our bank balances.

If I were to ask you, “Do you want to make more money today?” the answer would be a resounding “Yes.” Ten minutes. That’s it. Ten minutes a day, and you and I can start to make informed decisions about where our bucks should go.

Third, “Speculation is of the Devil.”

If no one had speculated on Home Depot, eBay or Microsoft, this would not be the greatest economy in the world. Speculation is the milk of capitalism.

Please listen carefully to this: No one should speculate with life-sustaining or retirement funds. I am not talking about taking food out of the mouth of your 3-year-old to fund the next nanoscience company. I am suggesting there are emerging Intels and Chico’s out there. You just have to find them.

There are three rules for discovering the next “aha!” company. First, they have to have real, not fairytale, financials. Research the numbers to find out if they are real.

Second, good emerging companies should have experienced and visionary management. You may want to call some of these companies and interview the top dogs.

If none of the dogs will talk with you, scratch them off your list.

Third, these emerging companies should have a product or service that you are convinced is timed right for this economy. Really, was this nation ripe for Starbucks or what?

Well, as I look over my lengthening life, I have had two major message centers about money and … my parents were always right.

Cal LeMon of Executive Enrichment Inc. solves organizational problems with customized training and consulting.