Tuesday, November 6, 2012

Economics Class Homework (Due Thursday, Nov. 8th by classtime)

Wealth: Is It Worth It? by S. Truett Cathy

Chapter 3 - Spend Wealth Wisely And Save It Reasonably (pages 107-147)
What were your thoughts on your reading over this chapter?

There is a ten sentence minimum to your post. You do not have to reply to other people's posts.

Be sure to sign your name (first & last) and your class period (Econ 3rd or Econ 6th). ie: Shane Hall, Econ 3rd

30 comments:

  1. Allison Lange (econ 3rd)November 6, 2012 at 3:03 PM

    I really like how Truett emphasizes the importance of patience and hesitancy, because without these, you will make careless mistakes, which could be devastating. I also like his idea that you should not spread yourself too thin, because if you do then you will not make good decisions. Truett makes the important statement that the road to wealth should not be set on borrowed money, but instead you should save and make decisions when you can. If you don't make wise decisions when it comes to building wealth then debt is a major possibility. I also really like the quote by Paul Harvey that says, "You might think life is not fair. Get used to it." I think that if people are more realistic about life they are more likely to approach things with hesitancy, which leads them to think things through before just diving in. I also really like Truett's belief that good things come out of difficulties, and even though situations may suck, it isn't for nothing, because good things do come out of tragedies. It gives hope about situations that seem hopeless. Once again, Truett emphasizes the importance of using wealth for good and for others, not just yourself. He also says that a good heart is needed when dealing with wealth, and I really respect him for that. I think that heart is at the center of what is important, and without it you are bound to fail

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  2. Chapter three was about how to spend money wisely and the best ways to save it. Truett Cathy talked about how risky spending money should be and how we should be careful with what we invest it in. Debt is very risky in itself, and can cause a huge burden on people finacially. Cathy says in this chapter that it is best to pay if off as soon as possible. Later he talks about how life isn't fair. Sometines things don't work out in life exactly as we plan for them to. We should be careful with our choices but when things go wrong he says we must remember that God can work all things together for our good. Truett Cathy also stresses the importance of doing things slowly and carefuly with our money. He says we should practice patience by investing in things long-term even though they may not have the greatest returns at first. He later talks about how important it is to keep growing finacially. Cathy says that he keeps working and trying to grwo in order to create opportunities for his employees and to remain confident in the future of his business.
    Summer Willingham
    Economics 6th

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  3. In this this chapter Cathy talks about spent vesting money. He talks a lot about investing your money steadily. If you spend to much money to fast then you could go into debt. To explain this he talks about Boston Chicken. This was a company in the early 1990's that was making great progress. They were expected to out grow chick ful a by 2000. This company invested to much money at to high of a rate and in 2000 they went bankrupt. Cathy talks a lot about winning the lottery also. This ties into the last chapter about hard work. He says that the people who win the lottery end up loosing the money because they don't know what it's like to earn the money they just receive the money and then they give it away. The two stories that Cathy used to explain this are very good examples. Cathy uses this chapter to really explain how someone should spend a good bit of time on something before going to the next thing. I liked this chapter because of the things that Cathy was talking about.

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  4. In this chapter, Truett Cathy talks about finance and how to spend money reasonably.He explains that as his career took flight, he was able to stay in business while other companies went bankrupt because they did not know how to manage their money. Unlike the previous chapters, this one focused on Truett’s business, and how Chik-fil-A came about, and all the struggles that Truett faced while building his empire. I found it interesting that Truett was able to maintain his senses even through his most successful and difficult times. He had many opportunities to expand his business and add to his wealth, but he always looked at the long-term goals.He knew it was better to build a solid foundation rather than building many restaurants that would be hard to maintain. Another interesting fact about Truett from this chapter is that he would rather have a private company instead of a public one. This is another trait that is admirable in Truett because if he had made Chik-fil-A a public company, he may have made more money.However, he was more interested in the people involved with every single restaurant that he decided to make Chik-fil-A, a private company. The last thing I took away from this chapter is Truett’s philosophy. His philosophy is waiting for the right time to buy something, whether it is a new piece of land or his current home, the Impossible Dream.
    -Heidi Park, 6th period-

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  5. In Chapter Three of "Wealth, Is It Worth It?" Truett Cathy explains the importance of spending your money properly. He wrote about how when he started his business in the Dwarf House he took out $6,600 in a loan to start the restaurant. He paid off the bill as soon as possible because of the fact that he does not like being in debt. While his business was still young he expanded by leasing areas that have already been built. The places such as shopping malls worked great because he did not have to build a building and buy land. That would of costed more money that he did not have. While in the reastaurant business he said that the hard times and cumbersome events led to good times and results. With God in control he overcame them and became closer in faith and more wealthy. My favorite part in this chapter is when he says life is not fair. It seems that we want to have an equal way or amount at everything. Sometimes we have events in our life that are heart breaking, such as his two brothers and their family dying but all we can do is pray to God for an answer. God works for the good of those who love the lord.

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  6. This final chapter of the book was very interesting. Cathy spoke about how to manage your money and the ways to save reasonably. Cathy tells us that a "better path to wealth is wise spending and reasonable saving." It was interesting to read the various stories Cathy shared about himself, Dr. Carter, Eric and others. One story that he shared that stood out to me was about the tragedy concerning the Dwarf House. Cathy has borrowed 90,000 and his business was a disaster and he became in debt. His friend, Ted Davis stepped in and helped him. Cathy noted, that "out of misfortune came opportunity." I think that is something we can carry in our daily lives and apply.

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  7. In chapter 3, Cathy talks about risks. He says that it is important to take risks because if you don't, you will never grow. However, you need to think them through so that you do not make rash decisions. He talks about how life isn't fair. Not everything is going to go our way in life, but you have to get used to it. We live in a fallen world. In the Bible it says that all things work together for the good of those who love God. Even though it is hard to belive sometimes, it is always true. Even when things look bleak, God has a plan that will be in the best interest of His followers. Cathy says that bigger is not necessarily better. You should strive to be better before you try to expand. Also, you need to think long-term. It is important to look forward farther than a few days. In order to be successful you have to plan wisely, which means thinking long-term.
    Julia Peavy
    6th period Economics

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  8. I liked his illustration in the beginning of the hiker. Many people these days have a false idea of how to achieve big goals. I thin we sometimes think that if we are shooting for big things then we have to take huge risks and hope that even though it is crazy it will somehow workout in the end. It is incredible what Truett has been through to be where he is today. to have as big a business as he does almost completely debt free is HUGE!And to think, if it weren't for his financial crisis, we may have never had the chicken sandwich. God really can work ALL things for the good of those who are called according to his purpose! I also agreed with his points about the church. John Piper also speaks about this in one of his sermons about how sad it is when pastors are willing to spend all that time, effort, and money just to have a pretty or modern building to preach the word of God in! Our world is so concerned with appearance that it has even leaked into the church. we are called to be different and set apart from the world and we will never be if we follow the world's status quo.

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  9. The statement that we, "take too much risk," is a clear reminder that we should be wise in our spending and saving. Truett Cathy expresses how he felt when his two brothers died, but he knew some things we can't control and all we can do about them is trust God. He describes how embarrassed he felt having to borrow money from the bank and how he paid every cent back as soon as he could. There was a financial situation where Truett believed there was no hope, but in the end he committed his restaurant to glorifying God and recovered from his crisis. Ther will be instances in our lifetimes where we will have struggles with money, but these challenges will enable us to work harder and will turn into new opportunites. Truett explains that we should expand only as much as our cash allows. When truett exclaims, "If we get better, customers will demand we get bigger," he is demonstrating that it is more important to perfect your business than it is to make a bigger mess. We must focus on our mission rather than our money if we want to become wise with our money. He also discusses the problem wilth growing too fast is that it stretches you beyond your ability to identify and select leadership. Instead of focusing our attention on the short-run, we should prepare for the long-term and focus on how we can make the journey ahead easier and more prosperous.
    Lauren Ellard, Econ 6th

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  10. In Chapter 3 of Cathy's "Wealth: Is it Worth It?" Cathy makes another important point. He shares his view on the matter of gaining wealth and using it carefully to benefit yourself and others for a number of reasons. I loved how he shared examples of hard situations he faced in business such as borrowing money when his restaurant burned down as well as borrowing money when building a home office. These events helped him to realize that our focus should truly be on trusting in God to work our trials out for good. I respect Cathy for writing about this issue because many times, specifically, at the present time, people lose sight of the fact that all the obstacles in life are in God's hands. Now this doesn't mean that we should just go out and do whatever we want and act however we want and then blame our outcomes on God. We certainly must not abuse this thought to our sinful advantage. In ordered to reap a respectable harvest, one must carefully and thoughfully take matters slowly and effectively. Truett Cathy is a prime example of this. While his business was down at one point in his life and money was becoming a slight issue, other blessings such as the creation of the Winshape Foundation came in to play. It just goes to show that God is in control of every situation and he is always one step ahead; we must not forget that.

    Abby Deckbar
    3rd period Economics

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  11. In the third chapter of Cathy's book he talks of the strategy for growth. Truett Cathy does not come across as a "cheap" man to me as he may to others, but rather as a strategic conservative grower. Cathy's most noteworthy lesson in growth is not to grow to fast and it come from Boston Market. Boston Market was a direct competitor of his and his executives feared as they were growing exponentially early, but as time dragged on they were bankrupt by 2000 where CFA had a billion dollar year. I like Cathy's attitude of fear towards debt as he has worked to pay off his company's debt in recent years by scaling back growth. I am afraid of debt and I have been offered loans on this and that, but refused to take them as they would be a sort of invisible bondage. Cathy is not concerned with the bottom line as much as he is with the reputation of his restaurant and the long-term forecast of profits. He says this is the difference between private and public companies. I agree as I have seen what Ford did in 1957 to outsell Chevrolet and now a 1957 Ford is a "needle in a haystack" compared to the Chevy. Cathy desires for his restaurant to be the best in quality not quantity and that is what makes something last. Risk has to be taken though and Cathy addresses that. Cathy tells us that he took a risk buy taking out a mortgage to buy the property for the Dwarf House instead of leasing it, but reflecting over the years of that investment he has saved a lot of money. Cathy also had to take out a great deal in loans so that his business could be launched and he did so in a bad market, but it was the right time. People have to take these risks and risk can make or break a person and can be as small as that career in the military that can put a person in a potentially deadly situation. Cathy also talks about investments and he talks about bad ones first like the lottery. I don't play it and it is a waste, but there are those who do. The lottery, in Cathy's words, can be deadly as the after effects are certain greed and worldly wants of friends. Bad investments like these break apart relationships, but there are good investments like land. Cathy is currently taking advantage of this and he describes land like this: there is only so much of it. Cathy ends on an important note and that is family. A dream of his was that penthouse condo, but the ultimate gift from CFA was his family which was united in purpose.

    -Alex Nelsen, 6 period. (Blame Carreker for it being so long)

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  12. In this chapter Cathy discusses spending wealth wisely and saving it responsibly. He tells us the the best path to wealth is wise spending and responsible saving. Cathy tells us that we take risk every day. He explains that debt is a finical risk that sometimes must be taken. Cathy also tells us that all things can work for good. Chickfila experienced many financial crisis, however things always worked out. One of the most important things Cathy talks about it thinking in the long term. He explains that growing in the short run sometimes is not as good as growing tin the long run. Cathy tells us that growing is important. This can apply to our lives cause the more we grow, the more opportunities we have- Carolyn McDonald

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  13. Jeremy Overman, 6th periodNovember 8, 2012 at 7:04 AM

    This chapter really showed me the importance of hard work and financial wisdom. Mr. Cathy worked hard in his first dwarf grill, taking in little personal income and working long hours with his brother. But when his brother died in a plane crash, he had to adjust. He was finally able to open a second restaurant without taking out another loan, but when that building burned down, he had to borrow $90,000 to rebuild with. After a lot of hard work and a relatively great length of time, he paid this off. From that point on he decided to wait on expansion so that he doesnt spread the money too thin. This is a great lesson to learn. By not spreading his profits too thin and working hard, by 2000 Chickfila grossed $1 billion dollars! Even now Mr. Cathy does not make investments unless the price is way lower than it should be and he has the cash to do it. Also, because he is so wise with his companys money, Chickfila is almost entirely out of debt and grossing well over $3 billion dollars now. So i learned that anything is possible with God, hard work, and wise money choices.

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    Replies
    1. i agree that Truett was very wise with how he spent his money and it paid off.

      bowen lader

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  14. Truett first approaches this chapter with any goal is reachable if you take the right steps to get there.this means to take care and confidences in the steps to get there. We should always make wise choices and avoid unnecessary risks. Life if is determined by the decisions we make. How we handle a situation makes all the difference. But not all risk is avoid able but we can mange risk with preparation and forethought. With out either of these things the result could be fatal. If you have debt in a business it equals risk. Debt is not secured by assets is an even greater risk. Never borrow money to grow your company!
    Patrick Hague
    3rd Period

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  15. In this chapter i can really see biblical prinipals in Cathy's life. The bible says it is not good to own anybody money and that is the same belief that he has. Even though he borrowed money he felt unconfortable doing so and made sure to pay it back. I think it is important when Cathy said they needed to bring their focus back to the mission and not worry about the money. Cathy puts an importance on building his bottom line and customer service and not borrowing a bunch of money like Boston Market did. Cathy shows the importance of money through the examples of how winning lots of money ruined their lives. Cathy is able to use his money wisely and avoid those calamities.

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  16. With money, we have to make the best smart decision. Using money wisely isnt always easy. In this chapter Truett Cathy talks about how we can do that. He quotes this to his daughter "No goal is too high if we climb with care and confidence ."In that he says to make wise choices and avoid unnessary risks.He says America cant avoid all risks but we can deal with them.A better path to wealth is wise spending and reasonable saving.Truett cathy said The Lord only gives us 24 hours aday to enjoy the blessings hes given us. Maybe someday he'll double that and give us more time to enjoy life even more! Using our money wisely can affect your evry day life.

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  17. in this chapter, i was remimnded that everything, whether its bad or good, happens for a reason. at times we may not understand why, but one day we will know why certain things have happened. he talked about how everyday holds a risk, or danger, but we have to face it, and we have to get out of bed in the morning. he also talked about a mountain climber, who was in an accident, and how someone said that he didnt have the right shoes, or rope, he wasnt prepared. in life we may not always know what is going to happen next, but we should atleast be prepared for what we know is comming, and have faith that God has a plan.
    Martha Shiver
    6th period

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  18. in this chapter cathy does a great job at eexplaing the biblical perspectives. he says we reallly shouldnt need to own people money. we need to use our money very wisely also instead of just giving it away to people. or just buying stuff you feel like you want. if you really think someone may need money then yes hep them but if deep down you really dont think they need it dont give it to them.we need to be more thankful on the way we earn the money and wise with it to.
    megan greeene
    6th period

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  19. To start this chapter off Truett said that any goal is reachable through hard work and determination. He also talks about how everything in life involves a danger or a risk and no matter what we do to avoid it, we will always have to face it. He also explains how debt is a financial risk that sometimes must be taked to achieve a goal. I like how he included examples such as borrowing money when his resturant burned down and also when he was building a home office. This may or may not help people relate but it should help. My favorite quote so far from the book was in this chapter. It was "The best path to wealth is wise spending and reasonable saving."
    Will Barkley
    6th Period
    Economics

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  20. In the third chapter of this book, Truett touches on risk, opportunity, eleminating debt, and a couple of other topics. He talks about an important issue in our country today which is debt. He speaks of the horror of going to the bank to borrow money knowing he has to pay it back. The worst finacial crisis that he was involved in was when he borrowed 10 million dollars with high interset rates. The most interesting part to me about that, is that during this crisis is when the franchise came up with their corporate statement. Their statement basically said that they entrusted in God with a purpose to have a positive influence on all who came in contact with the resturant. So even through his most scary finacial period, he entrusted in the Lord and the Lord helped him through it.
    Sam Pope
    Econ 6

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  21. truett talks about what is nessasary to abtain wealth. and the most important thing is wisdom. without wisdom its hard to obatain wealth unless u have dumb luck ;) i love some of the situations that he gave that he had to use wisdom to get wealth, such as borrowing money. he had to work hard to pay off the money he borrowed to rebuild the building that burnt down. it hard to imagention working with your own brother then having him die and have to change the way everything is worked.

    bowen lader

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  22. Mary Lanphier 3rd EconNovember 8, 2012 at 10:38 AM

    In chapter three 'Spend Wealth Wisely and Save It Reasonably", Truett Cathy discusses how earning the money isn't really the issue, but spending it wisely. If you just blow all of your money quickly and save nothing, then you will end up with nothing. Also, borrowing money is always a dangerous thing. Cathy mentioned the fiscal crisis he was in in the 1980's. He also said that while he may have gotten out of it that time, he doesn't want to experience it again. Another good point he made is that life isn't fair. The good and the bad things work together for the overall good. Even though he did not like the financial crisis he experienced or the fact that both of his brothers died in plane crashes, he knows that without it he would never have found their company saying. The conference he attended to correct their financial issues became something that brought him closer to God, and eventually, brought him success. Spending wealth wisely is always the hardest part of having money to begin with.

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  23. In this chapter I learned or at least he showed me and example of discipline with his money. Anyone can look at Truett and can use him as an example of how to handle and manage your money in a smart way. Thi chapter talked about Truetts story of how he becasme so prosperous, and one major thing that I noticed is that he did not spread his money out into a bunch of restaurants but instead he kept his assets in one or two stores and worked very hard at making them work. He is a great example of how to handle your money diligently. Another thing that he has done well is to stay out of debt as much as possible. My parents tell me that all the time and he for sure did it and it has worked out for him.
    Brooks Stroud 6th period

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  24. This chapter really shows you hard work and determination. Truett Cathy did not have it easy in business. He had to barrow money, and his restaurant burned down. I admire that during these hard times in his life he did not give up and he kept trusting in God. He knew that God was in control and would provide for him, and he did. Winshape Foundations was created. Even though he had to borrow money when he was having financial problems, he paid every cent back. Now he is dept free and owns one of the largest businesses in America! This goes to show that even in the hard times trust that God has a plan and will work everything out for our good!
    alysha amerson 3rd period

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  25. Sierra Herndon 3rd periodNovember 9, 2012 at 8:00 AM

    I love how Cathy emphasizes how you have to able to determine between patience and being hesitant. Because patients is so importance to suceeding in life, patients with your work, family, and friendsleads to a well balanced life. Cathy also shows the importance of being conservative with your money, Cathy is not cheap but he understands the importance of being frugile with your money. The key to wealth is knowing how to spend your money and not throwing it away. Patience, hard work, and perserverance is so important in having a sucessful business. Truett Cathy also uses his own biblical beliefs to kepp him going and to help him be sucessful. I think he appidimized the idea that God helps Those who help themselves, and Cathy shows this through how he run business and handles his money.

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  26. i admire Truett Cathy because even though he worked hard to build up a buisness that burned dow, he did give up and he never stopped trying. Truett Cathy have a fantastic point of view on life and how eventhough bad things in life happen it is important that you never give up and you always keep pursevering.
    Brooke Battson
    Mr Hall 6th p.

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  27. Lily Garnett: In this chapter, Cathy discusses patience and determination. One cannot gain wealth, or anything for that matter, with just the snap of their fingers. You have to work for what you want and be willing to wait for the results. You have to realize they won't be immediate, but God will grant you assistance with that if you only ask. Heck, look at Mr. Cathy (for instance). He had to work VERY hard and for a VERY long time before Chik-Fil-
    A before it became what it is today. Mr. Cathy also says that in order to achieve your dreams you have to take risks. I for one can agree with this, in fact, Bill Cosby says "Decide that you want it more than you are scared". How can you tell if something is going to work if you don't try it first? You never know, it may be the best decision you make.

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  28. in this Chapter Truett talks about how waiting and effort can gain wealth. you have to have to have both of these to earn wealth. you have to work for the things you want to recieve. God will help you though this if you are willing to do your part and follow the instructions he gives you on his part. this doesent mean that everything will always turn out in your favor but in the end, the good and the bad things will help you to do good and to help accomplish all that you worked for.

    brooke battson Mr. Hall 6th period

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  29. In the third chapter of Cathy’s book, he deals with two different points of money that involve each other. These two are wise spending and reasonable saving. Within the first 2 pages he addresses something that many people in America are in the act of. This is the borrowing of money to create the appearance of wealth. I see this a good bit and I hear about it even more, and never with anyone saying anything good about it. Cathy’s faith in God throughout his life, especially in financial areas, really impressed me. He is a very wise and fortunate man, and I believe these traits are blessings from God as gifts for staying true to Him. The stories he tells also make me think about what should really be valued in life. With a lot of money comes a lot of people who want handouts and will fake friendship for them. I will not become friends with people just because they are rich and I will not try to gain friends through money.

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