Yes, that was the punch line to the story yesterday, but what does teaching the horses to sing really mean?
Well, in the context of my Father’s discussions with me about paying back money’s owed to him and my mother, his view was: wait a while. Maybe in a few years you’ll have a lot of money and you can pay me back then, or maybe my parents will pass away, or the horses might sing. Have I paid the money back? Well, that is none of your business, is my answer to that question, but good question!
So that was my context, what can this parable mean in terms of Financial Planning and Debt Reduction? No, I don’t think I am saying procrastinate or hope for a better day in the future where everything will be better, but I am saying that if you have the luxury of Time to put perspective on a problem or a financial decision, maybe take advantage of that luxury. Don’t rush decisions that don’t need rushing, you’d be amazed at what can happen in 6 months.
I seem to remember a very good financial writer stating that any time you get a “windfall” of money (e.g. large inheritance, large settlement, lottery winning, etc.,) DON’T leap into a quick decision about what to do with the money. Put it aside in a conservative slow growth but safe place and think for at least 6 months about what you think you should do about it. I might only append to that sage piece of advice with, if you can pay off your debts right away, and still have a “nest egg” left, maybe do THAT, because you never can be too sure if the horses will actually sing!
While the 6 month rule is a good one, if you have done some pre-planning you can go ahead and use the windfall.
For instance, we know will get a nice windfall someday from an estate. We also know we need to re-do our kitchen (it is tiny). We have already planned to use part of the windfall to expand our kitchen in a reno.
Now I see that this was posted at 10;52 when all dedicated PS’s should be hard at work.!