2007 Commencement Address:
Congratulations are due to the class of 2007, but I get to speak to all of them one last time before they can go. Before I get started here, allow me to say that this is something new to me. I’m used to talking to 15-30 students about literature and writing – things that I know a little bit about. I’m not used to talking to a few hundred people about advice for life – something that I’m just figuring out for myself right now. But here goes…
Ten years ago, way back in 1997, I was in the graduates’ position, and some person my class had asked to speak was in the position I am in now – in front of a crowd speaking. I don’t have a clue who that was. I haven’t the foggiest idea what he or she talked about. It didn’t stick with me, and it didn’t help me at all because it didn’t change anything. After living through the last ten years after I graduated, I am now qualified to deliver the commencement address I wish I had heard ten years ago, and this is it. This is not the normal motivational speech, because I think those have a tendency to affect the audience for a couple days, maybe a week at the most. This is practical advice for graduates heading to college, the military and the workforce, as well as parents and friends in the audience. I hope this speech does stick with you and that it does change things.
I hear a lot of people say their motto is “no regrets.” Sometimes I wonder exactly what they mean, because there are a couple options. Do they mean that since they can’t change what they did in the past that it’s not worth regretting? While that’s true, and some people do dwell too much on regretting things they cannot change, I hope that more people mean that they plan to live in such a way that they won’t have any regrets later. I would say this is one of the mottoes by which I try to live now, but I haven’t always done this well. I have some regrets now. Let me clarify, since “regrets” is kind of a strong word. When I say I have regrets, I mean there are some things I would change if I could go back and do them over. And there are some things in my life, especially within the last ten years, that I would do differently if I had the chance.
I’ve narrowed some things I would do differently down to some mottoes that are easy to remember that I wish I followed starting at the time of my high school graduation. And like I said, this is the commencement address I wish I had heard ten years ago because I would be in a better situation today had I started out following this advice.
First of all: mind your own business. This’ll be harder for some of the ladies in the house. Girls, I’m just kidding. Guys, you know what I’m talkin’ about… Actually, what I think we should do is learn from the business world. Businesses are in business to make money, and so they closely monitor how much money comes in, how much money goes out, and how much time their employees spend doing productive things or wasting time. I think if we lived a bit more like we conduct business we would profit from that. And remember: in the business of life, we are all self-employed.
The last thing I would advise is for someone to leave here and try to live entirely like a business by only caring about profit margins or living for money, but I think that if we integrate some common business practices into our daily lives, we will profit in the long run. Our society today has gotten used to spending more than we bring in. That’s bad business, and that’s what credit cards and payment plans are all about. “Don’t have the money now? That doesn’t matter. Buy it now and pay for it over the next few years.” What would most businesses do if they couldn’t afford to buy something? They would get by with what they had for the time being and wait until they saved enough to buy it later. To make this a little more personal, here are some regrets from my personal business history.
The most expensive thing I wish I could do differently happened a few years ago when I said, “I do.” Girls, I’m just kidding. Guys, you know what I’m talkin’ about. Actually, I’m not talking about getting married. Don’t get me wrong, that’s very expensive, too, but I wouldn’t redo that. I got that one right the first time.
I said, “I do,” when the financial aid people at my college asked me if I wanted to sign some papers to take out some loans. (Actually, I don’t think they asked it that way, and I really doubt I answered it that way. “Do you want to sign some papers to take out some loans?” “I do.”) But anyways, I thought, “Hey, I’ll be making some sweet money when I get a real job. I’ll be able to pay these back lickity split.” (Actually, I don’t think I thought those exact words either...) But I’ve been paying those loans back ever since I graduated, and until this winter I was paying $400 per month. That adds up to about $24,000 so far, and that’s getting close to the total amount that I borrowed in the first place. Now my payments have been reduced to about $225 per month, which is a lot easier to take, but I already paid back most of what I borrowed. Now I’m paying the interest. And I still owe around $10,000. My math might be a little bit off, but my point is not – compound interest can be very expensive. If I could redo things, I would try to pay as I went more and to find more financial aid. If I had done that then and been paid off by now, all of the money I’m bringing in now would still be mine instead of in the mail.
Like I said, I didn’t think it would be a problem to pay back the loans because I would be making money – I would be able to pay them off pretty quickly. How easily I overlooked so many other things that have cost me money since then as well. Here are some things that didn’t think about having to pay for ten years ago. My house, newer cars, insurance for those cars, maintenance for those cars, gas, over $3 per gallon of gas, entertainment (like cable TV, internet, movies, video games), cell phone bills, clothing, utilities, food, restaurants, trash collection, eye exams, furniture, patio furniture, lawn mower, washer/dryer, an engagement ring and a wedding, a baby and all of her expenses. That doesn’t really leave much room for savings, vacations, and investing, although some people in the room would consider an engagement ring an investment. Girls, I’m kidding. That was just a joke. Guys, you know that’s how they think.
So, this is what I would do if I could go back and handle my money differently, and this is my advice to you: since you are self-employed and you have to mind your own business: live by a budget. Business people use budgets to ensure they don’t spend more money than they bring in without realizing it. Perhaps the best way I could put it is to say this: if you don’t budget it, you’ll lose it and you won’t know how you lost it. And here’s how I’d do it. I would take a couple months as a sample to figure out how much money I spend in an average month, then I’d try to stop wasting as much as possible, and then I’d figure out how much I should be living by. And then I’d stick to that.
And I would not use a credit card either. Thankfully, I almost never used one anyways. Credit card companies make them so easy to use, and to use without thinking about it. It’s so easy to pay just the minimum payment, and you’ll pay it off over a few years. Well, it’s that compound interest again. That’s how the companies are making so much money. How else could they pay for so many commercials and so much junk mail? Just say “no” to credit cards, and if you don’t like the idea of carrying cash around, use a debit card. It’s connected to your bank account – your real money – so you’ll be smarter with it anyways.
OK, you parents and grandparents out there, listen up. I say I would go back and do this over, but I should say that I am doing it over right now. Before this winter I did not live by a budget. I just bought things if I felt like it without too much thought about the near or distant future. I started living by a budget just this winter when I got this simple but life-changing advice from a guy on the radio named Dave Ramsey. I wish I had started taking this advice ten years ago, though. Man, I’d have so much more money now. If you don’t have a plan for your money, you will lose it. Earlier I said compound interest can be very expensive, but it can be used in your favor if you’re smart. Ramsey’s book talks about how the average American household brings in about $40,000 per year, or about $2,850 per month after taxes. They spend about $1,850 making payments on the house, cars, credit cards and other various loans. Do you know what that $1,850 per month would bring if invested in some average mutual funds? After fifteen years, they would have $1,000,000. Booyah! Their money would double in only five more years, and they would have $2,000,000 total. Booyah part two. My wife and I together make well over $40,000 per year, but we are not yet on our way to becoming millionaires. Why not? We have some payments to get rid of first, and it’ll take us another year or two to finish paying off my college and her car loans. Again, my advice – live by a budget now; buy only what you can afford with the money you are bringing in so that you don’t start out with a lot of debt around your necks. You start out even in the world, not owing anyone anything. Incurring a lot of debt when you’re young means you start out behind, and it will keep you behind for a long time.
I couldn’t recommend Dave Ramsey’s radio show and his book more highly. Check him out, and here’s something for the iPod generation – you can use iTunes to get one hour of his show for free every day. Stick that podcast on your iPod and get smarter with money every day. Commercials are taken out, so it’s 40 minutes long. And I couldn’t deliver a speech without recommending a book. You parents, family members and friends in the audience can get these grads a book that every one of them should read (and everyone of you should read it, too): The Total Money Makeover. You can get it for $15 on Dave’s website. $20 total when you pay $5 for shipping. I did a quick search this morning and there were many copies available on eBay for around $5. I realize I may sound a bit like a commercial myself right now, but I really wish I had this podcast and this book ten years ago. Man, I’d have so much more money now. And every person to whom I’ve told I would mention Dave Ramsey tonight has said, “I wish I had read his book a long time ago.” I’d say that’s a regret. Don’t have this regret later – read this book this summer. A side note to Chad Brunk’s family – I’m Chad’s NHS sponsor, and I’ll bring his copy of the book when I come to his open house.
OK, let me sum up my first main point about money by saying this again: if you don’t budget it, you’ll lose it and you won’t know how you lost it. And that brings me to my second and shorter point, because the same advice for your money goes for your time. I used to be one of the guys in school, in high school and college, who would claim that “I didn’t have enough time” to get my work done. The dirty little secret is that I almost always had enough time to play video games and hang out with my friends. And I know many of you on stage behind me now have said the same thing when you were rushing to get things done or after you should have gotten things done. Even though you really did have enough time, you just lost it because you didn’t use it wisely. Again, all it took for me to fix this was some simple but life-changing advice, this time from a college professor of mine. He told me that he went through grad school by using a very simple budget for his time, and not like you might think. It’d be silly to have every minute or every half-hour block planned out ahead of time, but a simple plan can work wonders. This professor would go to classes and study every day until dinnertime. After that, he would take a break for the rest of the night so he could hang out with his friends and do other things besides schoolwork. I gave this advice a fair shot, and my grades got a nice boost, I no longer had to cram or rush to get things done, and I was able to be more spontaneous with my time because I had planned things out in advance. Because I began to budget it, I was no longer losing my time without realizing where it was going.
This morning I put a cliff’s notes version of my advice on my class website so you can check that out for a reminder. Now, this advice will not be easy to follow all of the time. You guys will soon find out, if you haven’t already, there is no easy button in life. But the more you hit the hard button, the easier it gets. Here are the main points again: Mind your own business – incorporate some common business practices into your personal life. || You are self-employed – it is up to you (and it is for your benefit) to do this and stick with it. || Live by a budget – if you don’t budget your money, you will lose it, and you won’t know where it went. || Check out Dave Ramsey – his book is called The Total Money Makeover, and he’s on the radio 3 hours every week day. You can download one hour every day (that’s 40 minutes because the commercials are taken out) for free using iTunes. || Budget your time as well as your money – if you don’t budget it, you will lose it and you won’t know where it went.
OK, my budgeted time is up. If you tuned me out while I was talking, or if you do not heed this advice from someone who was recently in your position, you’ll probably forget who spoke at your graduation and what he said, like I did. However, if you remember this advice, take it to heart and live by it, you may never know how much different your life will be as a result. But I think you’ll have a much better chance of having “no regrets.”
Thank you very much.
Congratulations again to the class of 2007.
And one last thing for all the students who were in my senior English class: Shut.
Congratulations are due to the class of 2007, but I get to speak to all of them one last time before they can go. Before I get started here, allow me to say that this is something new to me. I’m used to talking to 15-30 students about literature and writing – things that I know a little bit about. I’m not used to talking to a few hundred people about advice for life – something that I’m just figuring out for myself right now. But here goes…
Ten years ago, way back in 1997, I was in the graduates’ position, and some person my class had asked to speak was in the position I am in now – in front of a crowd speaking. I don’t have a clue who that was. I haven’t the foggiest idea what he or she talked about. It didn’t stick with me, and it didn’t help me at all because it didn’t change anything. After living through the last ten years after I graduated, I am now qualified to deliver the commencement address I wish I had heard ten years ago, and this is it. This is not the normal motivational speech, because I think those have a tendency to affect the audience for a couple days, maybe a week at the most. This is practical advice for graduates heading to college, the military and the workforce, as well as parents and friends in the audience. I hope this speech does stick with you and that it does change things.
I hear a lot of people say their motto is “no regrets.” Sometimes I wonder exactly what they mean, because there are a couple options. Do they mean that since they can’t change what they did in the past that it’s not worth regretting? While that’s true, and some people do dwell too much on regretting things they cannot change, I hope that more people mean that they plan to live in such a way that they won’t have any regrets later. I would say this is one of the mottoes by which I try to live now, but I haven’t always done this well. I have some regrets now. Let me clarify, since “regrets” is kind of a strong word. When I say I have regrets, I mean there are some things I would change if I could go back and do them over. And there are some things in my life, especially within the last ten years, that I would do differently if I had the chance.
I’ve narrowed some things I would do differently down to some mottoes that are easy to remember that I wish I followed starting at the time of my high school graduation. And like I said, this is the commencement address I wish I had heard ten years ago because I would be in a better situation today had I started out following this advice.
First of all: mind your own business. This’ll be harder for some of the ladies in the house. Girls, I’m just kidding. Guys, you know what I’m talkin’ about… Actually, what I think we should do is learn from the business world. Businesses are in business to make money, and so they closely monitor how much money comes in, how much money goes out, and how much time their employees spend doing productive things or wasting time. I think if we lived a bit more like we conduct business we would profit from that. And remember: in the business of life, we are all self-employed.
The last thing I would advise is for someone to leave here and try to live entirely like a business by only caring about profit margins or living for money, but I think that if we integrate some common business practices into our daily lives, we will profit in the long run. Our society today has gotten used to spending more than we bring in. That’s bad business, and that’s what credit cards and payment plans are all about. “Don’t have the money now? That doesn’t matter. Buy it now and pay for it over the next few years.” What would most businesses do if they couldn’t afford to buy something? They would get by with what they had for the time being and wait until they saved enough to buy it later. To make this a little more personal, here are some regrets from my personal business history.
The most expensive thing I wish I could do differently happened a few years ago when I said, “I do.” Girls, I’m just kidding. Guys, you know what I’m talkin’ about. Actually, I’m not talking about getting married. Don’t get me wrong, that’s very expensive, too, but I wouldn’t redo that. I got that one right the first time.
I said, “I do,” when the financial aid people at my college asked me if I wanted to sign some papers to take out some loans. (Actually, I don’t think they asked it that way, and I really doubt I answered it that way. “Do you want to sign some papers to take out some loans?” “I do.”) But anyways, I thought, “Hey, I’ll be making some sweet money when I get a real job. I’ll be able to pay these back lickity split.” (Actually, I don’t think I thought those exact words either...) But I’ve been paying those loans back ever since I graduated, and until this winter I was paying $400 per month. That adds up to about $24,000 so far, and that’s getting close to the total amount that I borrowed in the first place. Now my payments have been reduced to about $225 per month, which is a lot easier to take, but I already paid back most of what I borrowed. Now I’m paying the interest. And I still owe around $10,000. My math might be a little bit off, but my point is not – compound interest can be very expensive. If I could redo things, I would try to pay as I went more and to find more financial aid. If I had done that then and been paid off by now, all of the money I’m bringing in now would still be mine instead of in the mail.
Like I said, I didn’t think it would be a problem to pay back the loans because I would be making money – I would be able to pay them off pretty quickly. How easily I overlooked so many other things that have cost me money since then as well. Here are some things that didn’t think about having to pay for ten years ago. My house, newer cars, insurance for those cars, maintenance for those cars, gas, over $3 per gallon of gas, entertainment (like cable TV, internet, movies, video games), cell phone bills, clothing, utilities, food, restaurants, trash collection, eye exams, furniture, patio furniture, lawn mower, washer/dryer, an engagement ring and a wedding, a baby and all of her expenses. That doesn’t really leave much room for savings, vacations, and investing, although some people in the room would consider an engagement ring an investment. Girls, I’m kidding. That was just a joke. Guys, you know that’s how they think.
So, this is what I would do if I could go back and handle my money differently, and this is my advice to you: since you are self-employed and you have to mind your own business: live by a budget. Business people use budgets to ensure they don’t spend more money than they bring in without realizing it. Perhaps the best way I could put it is to say this: if you don’t budget it, you’ll lose it and you won’t know how you lost it. And here’s how I’d do it. I would take a couple months as a sample to figure out how much money I spend in an average month, then I’d try to stop wasting as much as possible, and then I’d figure out how much I should be living by. And then I’d stick to that.
And I would not use a credit card either. Thankfully, I almost never used one anyways. Credit card companies make them so easy to use, and to use without thinking about it. It’s so easy to pay just the minimum payment, and you’ll pay it off over a few years. Well, it’s that compound interest again. That’s how the companies are making so much money. How else could they pay for so many commercials and so much junk mail? Just say “no” to credit cards, and if you don’t like the idea of carrying cash around, use a debit card. It’s connected to your bank account – your real money – so you’ll be smarter with it anyways.
OK, you parents and grandparents out there, listen up. I say I would go back and do this over, but I should say that I am doing it over right now. Before this winter I did not live by a budget. I just bought things if I felt like it without too much thought about the near or distant future. I started living by a budget just this winter when I got this simple but life-changing advice from a guy on the radio named Dave Ramsey. I wish I had started taking this advice ten years ago, though. Man, I’d have so much more money now. If you don’t have a plan for your money, you will lose it. Earlier I said compound interest can be very expensive, but it can be used in your favor if you’re smart. Ramsey’s book talks about how the average American household brings in about $40,000 per year, or about $2,850 per month after taxes. They spend about $1,850 making payments on the house, cars, credit cards and other various loans. Do you know what that $1,850 per month would bring if invested in some average mutual funds? After fifteen years, they would have $1,000,000. Booyah! Their money would double in only five more years, and they would have $2,000,000 total. Booyah part two. My wife and I together make well over $40,000 per year, but we are not yet on our way to becoming millionaires. Why not? We have some payments to get rid of first, and it’ll take us another year or two to finish paying off my college and her car loans. Again, my advice – live by a budget now; buy only what you can afford with the money you are bringing in so that you don’t start out with a lot of debt around your necks. You start out even in the world, not owing anyone anything. Incurring a lot of debt when you’re young means you start out behind, and it will keep you behind for a long time.
I couldn’t recommend Dave Ramsey’s radio show and his book more highly. Check him out, and here’s something for the iPod generation – you can use iTunes to get one hour of his show for free every day. Stick that podcast on your iPod and get smarter with money every day. Commercials are taken out, so it’s 40 minutes long. And I couldn’t deliver a speech without recommending a book. You parents, family members and friends in the audience can get these grads a book that every one of them should read (and everyone of you should read it, too): The Total Money Makeover. You can get it for $15 on Dave’s website. $20 total when you pay $5 for shipping. I did a quick search this morning and there were many copies available on eBay for around $5. I realize I may sound a bit like a commercial myself right now, but I really wish I had this podcast and this book ten years ago. Man, I’d have so much more money now. And every person to whom I’ve told I would mention Dave Ramsey tonight has said, “I wish I had read his book a long time ago.” I’d say that’s a regret. Don’t have this regret later – read this book this summer. A side note to Chad Brunk’s family – I’m Chad’s NHS sponsor, and I’ll bring his copy of the book when I come to his open house.
OK, let me sum up my first main point about money by saying this again: if you don’t budget it, you’ll lose it and you won’t know how you lost it. And that brings me to my second and shorter point, because the same advice for your money goes for your time. I used to be one of the guys in school, in high school and college, who would claim that “I didn’t have enough time” to get my work done. The dirty little secret is that I almost always had enough time to play video games and hang out with my friends. And I know many of you on stage behind me now have said the same thing when you were rushing to get things done or after you should have gotten things done. Even though you really did have enough time, you just lost it because you didn’t use it wisely. Again, all it took for me to fix this was some simple but life-changing advice, this time from a college professor of mine. He told me that he went through grad school by using a very simple budget for his time, and not like you might think. It’d be silly to have every minute or every half-hour block planned out ahead of time, but a simple plan can work wonders. This professor would go to classes and study every day until dinnertime. After that, he would take a break for the rest of the night so he could hang out with his friends and do other things besides schoolwork. I gave this advice a fair shot, and my grades got a nice boost, I no longer had to cram or rush to get things done, and I was able to be more spontaneous with my time because I had planned things out in advance. Because I began to budget it, I was no longer losing my time without realizing where it was going.
This morning I put a cliff’s notes version of my advice on my class website so you can check that out for a reminder. Now, this advice will not be easy to follow all of the time. You guys will soon find out, if you haven’t already, there is no easy button in life. But the more you hit the hard button, the easier it gets. Here are the main points again: Mind your own business – incorporate some common business practices into your personal life. || You are self-employed – it is up to you (and it is for your benefit) to do this and stick with it. || Live by a budget – if you don’t budget your money, you will lose it, and you won’t know where it went. || Check out Dave Ramsey – his book is called The Total Money Makeover, and he’s on the radio 3 hours every week day. You can download one hour every day (that’s 40 minutes because the commercials are taken out) for free using iTunes. || Budget your time as well as your money – if you don’t budget it, you will lose it and you won’t know where it went.
OK, my budgeted time is up. If you tuned me out while I was talking, or if you do not heed this advice from someone who was recently in your position, you’ll probably forget who spoke at your graduation and what he said, like I did. However, if you remember this advice, take it to heart and live by it, you may never know how much different your life will be as a result. But I think you’ll have a much better chance of having “no regrets.”
Thank you very much.
Congratulations again to the class of 2007.
And one last thing for all the students who were in my senior English class: Shut.