PDF Summary:All the Presidents' Money, by Megan Gorman

The ability to see oneself in the long-term future deeply shapes how individuals manage their financial affairs—especially for those in positions of great power and responsibility. In All the Presidents' Money, Megan Gorman explores how American presidents have displayed far-sightedness (or lack thereof) when handling their personal wealth before, during, and after holding office. She shows the vital roles of family upbringing, education, and personal qualities like determination and restraint in the economic fortunes of commanders-in-chief.

The book also reveals how presidents' spending habits and financial management impacted American society, from FDR's fundraising efforts that helped defeat polio to Calvin Coolidge's frugality during the "Roaring Twenties." Additionally, it delves into the monetary dynamics between presidential couples, highlighting both harmonious and rift-causing money matters between the White House's most powerful partners.

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Calvin Coolidge's frugal nature and aversion to borrowing influenced his financial governance style and the lasting impact he created.

Gorman explores how a natural tendency to save and an aversion to borrowing shape individual behaviors by tracing the financial journey of the United States' 30th President. The foundational period of Coolidge's life was strongly influenced by these values. His relatives and forebears held the values of frugal living in high regard. As he sought power through politics, Coolidge made a choice to be thrifty, refusing to acquire more wealth that would put him in a conflicted position.

Gorman highlights how President Coolidge exercised financial prudence, focusing on his modest lifestyle while in office and his reluctance to invest in real estate, despite it being regarded as a shrewd financial decision. His ability to grow his wealth was limited by his understanding of financial expansion tactics and his dedication to living within his means. During his presidency, Coolidge emphasized financial prudence, which influenced his policy choices and underscored the period of economic boom referred to as the "Roaring Twenties." He resisted taking advantage of opportunities to grow his wealth, despite receiving advice from financial experts, because of his natural tendency to be frugal. He exhibited careful and moral stewardship of his financial resources, which showcased his self-restraint but possibly limited his ability to accumulate substantial wealth.

Practical Tips

• You can adopt a frugal mindset by creating a "Coolidge Jar" where you deposit a set amount of money each week that you've saved through cost-cutting measures like using coupons, avoiding impulse purchases, or walking instead of driving short distances. This tangible representation of savings can motivate you to continue and even increase your frugal habits.
• Implement a 'One Month, One Expense Cut' plan where each month, you identify one regular expense that you can reduce or eliminate. It could be dining out less, canceling an unused subscription, or switching to a cheaper phone plan. Document the savings and review the impact after a year. This gradual approach to cutting costs can lead to significant long-term savings without feeling overwhelming.
• Start a "power through simplicity" journal where you document daily decisions that reflect a minimalist approach to achieving your goals. This could involve identifying one task each day that you can accomplish using fewer resources or in a more straightforward manner. For instance, if your goal is to improve your fitness, instead of joining an expensive gym, you could opt for running outdoors and doing bodyweight exercises at home.
• Start a "Use What You Have" week every quarter, where you focus on utilizing items you already own rather than purchasing new ones. This could involve repurposing old furniture, mending clothes instead of buying new ones, or using up all the food in your pantry before going grocery shopping. It's a way to appreciate and extend the life of your possessions, reducing the urge to acquire more.
• You can assess your financial decisions by creating a "Values-Based Budgeting" plan. Start by listing your core values and then align your budget categories with these values. For example, if 'simplicity' is a core value, you might allocate less to entertainment and luxury items and more to savings or debt repayment, reflecting a preference for financial peace over material possessions.
• Experiment with a monthly 'financial freedom day' to explore potential wealth-building activities without compromising overall self-restraint. On this day, dedicate time to research and possibly engage in a new financial venture, such as starting a small online business, investing in a stock or a mutual fund, or purchasing materials to start a side hustle. This designated day encourages you to take calculated risks while keeping your regular finances disciplined.

LBJ and Lady Bird, through their joint financial acumen and teamwork, considerably grew their broadcasting business.

Megan Gorman suggests that the collaborative financial savvy of both Lyndon B. Johnson and his spouse, Claudia "Lady Bird" Johnson, was crucial in amassing their significant wealth. Lady Bird applied her sharp business acumen and the wealth she inherited to turn a small, struggling broadcasting outlet into a prosperous media empire valued at millions, as LBJ focused on his political career. Lady Bird shrewdly grew her investment portfolio by purchasing KTBC and adeptly leveraged the station's limited resources, overcoming regulatory hurdles to turn it into a prosperous enterprise.

Gorman highlights the crucial influence of Lady Bird in the rejuvenation of KTBC. She recruited seasoned executives, modernized antiquated machinery, actively sought to collect outstanding debts, and concentrated on expense control, which collectively halted the broadcaster's fiscal decline and established a foundation for subsequent expansion. Additionally, LBJ recognized the reciprocal advantages for his political ambitions and the broadcasting industry, leading to a pivotal alliance with CBS that permitted KTBC to air in-demand programs to viewers across the country. This tactical move not only boosted the station's dominance and profitability but also propelled the Johnsons from modest financial beginnings to rank among the wealthiest families connected to the presidency.

Context

• Claudia "Lady Bird" Johnson was not only the First Lady but also a savvy businesswoman. Her education included a degree in journalism and a background in public relations, which likely contributed to her understanding of media and communications.
• At the time of the purchase, broadcasting was heavily regulated by the Federal Communications Commission (FCC), which controlled licensing and operations. Navigating these regulations was crucial for expanding the station's reach and profitability.
• The modernization of machinery at KTBC likely involved upgrading to more advanced broadcasting equipment, which improved signal quality and expanded reach, making the station more competitive.
• Forming a partnership with a major network could also lead to strategic alliances with other media entities, further expanding the Johnsons' influence in both the media and political landscapes.
• CBS was one of the major television networks in the United States, known for its wide reach and popular programming. An alliance with CBS would have provided KTBC access to a larger audience and more attractive content, which was crucial for increasing viewership and advertising revenue.
• During the mid-20th century, television and radio were rapidly growing industries, offering significant opportunities for financial gain. The Johnsons' investment in broadcasting was timely, aligning with the post-war economic boom and the increasing influence of media.

Traits like determination, foresight, and bravery evidently shape the manner in which presidents manage their personal finances.

The book emphasizes Gorman's definition of "grit" as the unwavering commitment and sustained zeal for the attainment of long-term goals, which she deems crucial to the building of wealth. Gorman delves into the necessity of traits such as ambition and courage for the attainment of financial success. Megan Gorman explores the financial trajectories of three U.S. presidents from different eras, showing how their individual traits shaped their economic outcomes.

George Washington's steadfast dedication, business acumen, and strategic decision-making were the driving forces behind his unparalleled financial achievements.

Gorman narrates the story of a young man whose steadfast resolve for wealth accumulation propelled him from humble beginnings to a status among the era's wealthiest individuals. Denied the privilege of a formal college education, he pursued knowledge through self-education, particularly in surveying, recognizing its potential in a land-rich society. During his twenties, his steadfast determination resulted in his proficiency in surveying and the effective gathering of land, which positioned him as a prosperous landowner and surveyor.

Washington's resolve was evident in his surveying work, and he was willing to take carefully evaluated risks to enhance his economic position. He adeptly managed the fortune passed down to him, made wise investments in real estate, and utilized his military service to acquire substantial tracts of land in Ohio. Gorman suggests that the first president's financial successes were established through meticulous planning, unwavering dedication, and the audacious capitalization on opportunities, thereby creating a model for accumulating wealth through determined actions and an innovative mindset.

Context

• His marriage to Martha Custis, a wealthy widow, significantly increased his wealth and provided him with additional resources to expand his business ventures.
• Primogeniture was common, meaning the eldest son typically inherited the family estate. Washington, however, was not the eldest, which makes his self-made wealth more notable.
• Surveyors often had first access to information about land availability and quality, giving them a strategic advantage in acquiring prime real estate before others.
• Washington's lack of formal education meant he had to rely on self-directed learning. This involved studying mathematics and geometry, which were essential for accurate surveying.
• Owning land was not only a sign of wealth but also provided economic opportunities through agriculture, leasing, or selling parcels. It was a way to generate income and increase social standing.
• Washington leveraged his political connections to gain insights and opportunities in land deals, a strategic risk that required maintaining a delicate balance of power and influence.
• His approach to managing his fortune included a focus on sustainability and long-term growth, ensuring that his wealth would endure beyond immediate gains.
• As a Virginian, Washington benefited from Virginia's claims to western lands. Virginia had extensive land claims in the Ohio region, which it used to reward its veterans, including Washington, for their service in the French and Indian War.
• Washington was known for experimenting with new agricultural techniques at his Mount Vernon estate, which increased productivity and profitability, showcasing his forward-thinking approach to business.
• His military service provided him with opportunities to acquire land grants, which were often given as compensation. This not only increased his holdings but also expanded his influence and network.

Ulysses S. Grant's trusting nature and lack of financial acumen lead to a series of failed business ventures

Gorman highlights the stark contrast between the economic triumphs in Washington and the fiscal difficulties faced by Ulysses S. Grant. Grant's expertise and bravery in military matters sharply contrasted with his struggles in financial affairs, which arose due to his minimal grasp of business matters and vulnerability to fiscal exploitation. Gorman narrates the tale of Grant, a war hero of immense bravery who is perpetually being deceived.

Gorman details how Grant's ventures in business, including ice sales and farming, ultimately led to a ruinous investment in a provision store that left him insolvent and saddled with substantial financial obligations. These disasters, according to her, didn't just occur by chance; they also arose due to Grant's insufficient financial acumen and his overdependence on his counselors. His financial stability suffered because he placed too much trust in verbal agreements, failed to conduct thorough background checks, and did not protect his investments, leaving him vulnerable to unscrupulous partners and highlighting the need for vigilance when managing monetary matters.

Other Perspectives

• Grant's success in other areas, such as his military career and presidency, suggests that his skills and abilities were perhaps better suited to public service than to entrepreneurship.
• The financial difficulties faced by Grant could be partially attributed to the transition from a military to a civilian career, which often involves a steep learning curve that even capable individuals might find challenging.
• The financial obligations that Grant was saddled with were eventually mitigated through the support of friends and admirers, suggesting that his personal relationships did provide some financial safety net.
• The notion that Grant's financial disasters were solely due to his own shortcomings may overlook the collective responsibility of the business community and society to prevent exploitation and provide education on financial matters.
• Not protecting investments adequately could reflect the broader economic and regulatory environment of the period, which lacked the sophisticated financial instruments and regulatory protections we have today.
• Being deceived could also be attributed to the sophistication of the schemes or the deceitful nature of the individuals involved, rather than solely on Grant's trusting nature.

Nixon's fear of failure and his reluctance to embrace risk hindered his ability to amass wealth.

The book depicts Richard Nixon as someone whose initial financial struggles instilled in him a fear of failure, which in turn prompted him to adopt a careful and risk-averse strategy. Financial uncertainty characterized his formative years, driving his pursuit of success and deeply ingraining a fear of failure and financial uncertainty. His approach to managing risk was shaped by his early experiences with financial uncertainty.

Gorman highlights Nixon's ill-fated commercial ventures, notably his association with Citrifrost Corporation, which sought to capitalize on the burgeoning frozen food sector by marketing a version of orange juice intended for sale in a frozen state. The enterprise, initially brimming with promise, ultimately failed due to inadequate financial management, product defects, and challenges in the market. Gorman suggests that a combination of factors led to Citrifrost's collapse, among them the profound reluctance of Nixon to face loss and his reluctance to embrace new and uncertain methods. The writer believes that Nixon's previous encounters with financial matters resulted in a more conservative financial strategy, which in turn limited his ability to accumulate substantial wealth.

Other Perspectives

• The fear of failure could have been reinforced by factors other than financial struggles, such as the high expectations placed upon him in his political career.
• Some of the most successful individuals in history have been characterized by their cautious approach to risk, suggesting that risk aversion is not inherently a barrier to amassing wealth.
• The assertion that financial uncertainty in Nixon's formative years shaped his risk management overlooks the possibility that his political ambitions and the need for a stable public image may have dictated a more conservative financial approach.
• Market challenges are often outside the control of a single company or individual, and even well-managed companies with excellent products can struggle due to competitive pressures, regulatory changes, or unforeseen market dynamics.
• It is possible that even with a willingness to embrace new methods, the frozen food sector's challenges at the time were too great for Citrifrost to overcome, indicating that the industry itself, rather than Nixon's personal traits, was a more decisive factor in the company's failure.
• Nixon's political career, with its associated income and benefits, may have provided a more reliable and substantial source of wealth than entrepreneurial ventures.

Presidential unions and their interactions regarding economic matters and assets.

The section of the story delves into the financial interplay among couples leading the nation, scrutinizing their approaches to handling finances, the fiscal challenges they encountered, and the impact of these elements on the strength of their marital relationships. The author highlights the stark difference between couples who have established a balanced financial partnership and those whose relationships suffer due to financial disputes and an absence of transparency in managing their money.

Gerald Ford, together with his wife Betty, implemented a systematic approach to managing their finances, which ensured a stable and secure financial position following his time in office.

Gerald Ford and Betty Ford, a model of financial harmony, exemplify, in Gorman's view, a shared vision for stable wealth after a lifetime of living paycheck to paycheck, especially during President Ford’s time in government. After leaving office in 1977, Gerald Ford and his wife Betty realized that they were not sufficiently prepared financially. They recognized that leveraging their public visibility was essential for accumulating wealth and securing their financial future.

Gorman details the strategies they used to secure lucrative opportunities, including speaking events, book deals, endorsements, and appointments to company directorships once their presidential terms concluded. Their expectations were clearly communicated. They persistently sought out such chances. They identified possible economic risks, including those associated with the operations of The Franklin Mint. The collective financial strategy and diligent economic discipline of the Ford family established a robust monetary base, freeing them from the extended economic difficulties they previously endured.

Other Perspectives

• The financial strategies employed by the Fords, while successful, might have depended on a unique set of circumstances and personal connections that are not available to every former president or public servant.
• Relying on public visibility as a means of wealth accumulation may not be a sustainable or reliable financial strategy, as public interest can wane over time.
• This approach to financial stability may raise ethical questions about the monetization of public service, as it could appear that a former president is capitalizing on the prestige of the office for personal gain.
• The pursuit of company directorships and endorsements could lead to potential conflicts of interest, where decisions made in office could be perceived as influenced by the prospect of future personal financial opportunities.
• The mention of The Franklin Mint does not provide information on how the Fords mitigated these risks, which is a critical aspect of risk management.
• The success of their financial strategy might also be partially attributed to economic conditions and market forces beyond their personal discipline and strategy, such as a favorable post-presidential economy or a strong stock market.
• While the systematic approach to managing finances may have helped alleviate immediate economic difficulties, it does not guarantee immunity from future financial challenges, as economic conditions can change unpredictably.

Abraham Lincoln and Mary Todd's financial incompatibility and Mary's overspending undermine their marital harmony

In this segment, the author reveals the intricate financial struggles faced by Abraham Lincoln and his wife, emphasizing that the absence of financial unity and secrecy about economic challenges in a marriage can create barriers to a harmonious partnership. Abraham Lincoln, recognized for his meticulous approach to finances and his inclination for frugality, often faced difficulties reconciling his own values with the lavish spending and seemingly spontaneous purchases made by his wife.

Gorman details the divergent financial backgrounds and viewpoints: Lincoln, raised in poverty, cherished thriftiness and steadfast adherence to his financial plan, while Mary, hailing from a background of wealth and privilege, had a tendency to favor lavish living. Mary frequently spent more than they earned, leading to financial obligations that put pressure on their partnership. Gorman suggests that ingrained psychological elements likely shaped Mary's spending behaviors, resulting in a scenario where both she and Lincoln maintained the confidentiality of their financial transactions from each other. The financial hardships they faced were exacerbated by the chaos of the Civil War and the sorrow caused by the loss of their son Willie, which further eroded the confidence in their marriage, leading to a pattern marked by fiscal challenges and highlighting the dangers of conflicting financial views and insufficient communication between spouses.

Practical Tips

• Develop a habit of documenting all your expenses and income in a shared spreadsheet or app with your partner to maintain transparency and joint responsibility. This practice ensures both partners are fully aware of the financial situation, which can prevent misunderstandings and foster a sense of teamwork. You could use a simple Google Sheet that both of you can update in real-time, categorizing expenses and noting any changes in income.
• Set up a "Thrift Challenge" with friends or family where each person proposes a cost-saving strategy and implements it over a set period. This could be anything from using public transportation instead of driving to making homemade gifts instead of buying them. At the end of the challenge, share your results and savings to encourage accountability and collective learning.
• Implement a 48-hour rule for non-essential purchases to avoid impulsive buying. Whenever you feel the urge to buy something that isn't a necessity, wait for 48 hours before making the decision. During this time, evaluate if the item is a want or a need, and consider the impact of the purchase on your budget. This pause can help reduce the frequency of unnecessary expenditures.
• Set up a "reverse budget" where you save first and spend what's left. Determine a percentage of your income that you want to save each month, and as soon as you get paid, transfer that amount to a savings account. Then, live off the remaining amount. This ensures you're not spending more than you earn and prioritizes saving.
• You can create a "Mystery Money Date" with your partner where each of you plans a surprise, budget-friendly activity using your personal funds without disclosing the cost. This encourages respect for individual financial autonomy while fostering a sense of adventure and trust in the relationship.
• Engage with your local community by volunteering at a historical society or museum with a focus on the Civil War era. Through this, you'll gain firsthand experience in how communities preserve the memory of financial hardships and other challenges from that time. This will provide a practical connection to the historical events and their impact on society, both past and present.
• Engage in a creative project with your partner that channels your shared sorrow into something tangible. This could be writing a story together, painting a mural, composing a piece of music, or planting a garden. Choose an activity that allows both of you to express your feelings and work collaboratively. Through the creative process, you can explore your emotions, support each other, and create a lasting tribute that signifies your journey through sorrow as a couple.
• Initiate a game of "financial role reversal" where you and your spouse switch financial responsibilities for a month. If one usually pays the bills, the other takes over, and vice versa. This exercise can build empathy and understanding of the other's perspective on financial management and decision-making.

Jimmy Carter, in partnership with his wife Rosalynn, utilized their collective financial expertise and shared ambitions to build a farming business valued in the millions.

The writer depicts how the collaborative relationship between Jimmy Carter and his wife Rosalynn, founded on shared values and complementary financial skills, has allowed them to surmount challenges and attain financial success. Carter's decision to abandon a promising naval career in favor of overseeing his family's farming business in Plains, Georgia initially seemed to impede his advancement in status and wealth. The writer argues that Carter, deeply shaped by his father's steadfast dedication to serving the community, sought a unique path to success, even though he sometimes faced monetary difficulties.

Confronted with economic inflation, severe drought, and escalating financial difficulties, the couple utilized their collective expertise to evolve their agricultural venture into a prosperous enterprise. Carter harnessed his intellectual curiosity and engineering acumen to modernize agricultural practices, while the exceptional business acumen of Rosalynn played a pivotal role in managing the financial side and boosting the profitability of their farming ventures. They evolved their modest agricultural operations into a peanut processing enterprise that achieved a multimillion-dollar worth. Gorman highlights how the unwavering commitment of the Carter family to their values, coupled with their strong conviction in the importance of hard work, honesty, and supporting their community, enabled them to overcome obstacles and achieve financial success.

Practical Tips

• Create a simple spreadsheet to track the profitability of a hobby or side project you're passionate about. This could be anything from gardening to crafting. Record all expenses and any income generated. Over time, analyze the data to understand the financial viability and consider ways to scale it up, similar to how a small farming operation might grow.
• Create a family business plan if you're considering taking over a family enterprise. Sit down with family members to outline the roles, expectations, and future goals of the business. This collaborative approach ensures everyone is on the same page and can help smooth the transition process.
• Establish a monthly "Community Day" in your personal calendar where you dedicate time to local causes or initiatives. This could involve cleaning up a park, reading to children at the library, or helping at a food bank. By setting a regular schedule, you ensure consistent involvement and can invite others to join you, fostering a community-focused mindset.
• Form a neighborhood barter network to exchange goods and services without the need for money. This can help you and your neighbors save on expenses and foster a supportive community. You might offer your skills in gardening in exchange for someone else's ability to mend clothes, effectively reducing the need for paid services.
• Try growing a small selection of herbs or vegetables using hydroponics or another soil-less agriculture method to explore the efficiency of modern farming techniques. This can be done with a simple DIY setup using containers, water, and nutrient solutions. It's a way to understand how modern agriculture maximizes space and resources, and you'll learn about the science behind plant growth without the need for large plots of land or traditional soil-based gardening.
• Consider diversifying your product offerings to meet market demands and increase revenue streams. Conduct market research to understand what complementary products or services your customers might be interested in. If you own a bookstore, you might find that your customers are also interested in writing workshops, leading you to organize and host such events to attract more visitors and create an additional income source.
• Research and connect with local peanut farmers or agricultural experts to learn about the industry. Networking with these individuals can provide insights into the market demand, potential challenges, and opportunities for innovation in peanut processing that you might not find in mainstream resources.
• You can foster a culture of honesty in your daily interactions by creating a "truth log" where you record instances where you were completely honest and times you could have been more truthful. This self-monitoring tool encourages reflection on your honesty and helps identify patterns or situations where you might struggle to maintain this value. For example, if you notice you're less honest when under pressure, you might work on stress management techniques.