Tag: finance

You get what you pay for

August 7, 2026

This phrase has been used often to justify spending someone felt was necessary.  Sometimes it is a man speaking to his wife about the new boat or car.  Other times it is a woman speaking of her new jewelry or dress.  Or it may be the Senator, Congressman, or President trying to convince voters that the government’s expenses are reasonable.

In our society, most people, they do not receive the quality and expectations for which they are paying. My career put me in a position to work with manufacturers for twenty-five years, and I ended my career after working at three manufacturers. I learned that the cost of manufacturing products is often a minor part of the retail price.

This is why we have the mysterious MSRP or Manufacturer’s Suggested Retail Price. Sometimes this is not necessarily suggested by the company that made it. Often a major distributor sets this price. In my first purchasing position, I learned that some major retailers have a minimum markup of 35 to 40 percent. I was required to negotiate special pricing from our vendors to meet these requirements.

When I moved to industrial products, our profit as a distributor was often 75%. I also learned how to calculate profits in a suspiciously obscure way. This is how retailers say they are selling at a percentage of their cost and still make millions of dollars. There are also rebates, hidden discounts, and multiple levels of warehouses that each have a markup.

I have spoken before about stores that open each season with sales of thirty percent discounts, and other retailers only give a ten percent discount on sale prices. My wife and I prefer to purchase products at fifty percent or less of the standard price. We also look for clearance sales and occasionally find 75-90% sales after the season ends.

For fifty years, we have bought things that we could afford. We recently purchased a car that was more expensive than we ever bought before. It was a 2016 Buick SUV with about 60,000 miles. God provided a desire for us that He often has done in previous years. We don’t receive everything we want but often find Him giving us exactly what we desire.

The title of this column is correct, and you receive more than you paid for if you allow Jesus to be Lord of your life. I have followed Him for most of my years and hope that you have found the same to be true in your lives.

©Copyright 2026 by Charles Kensinger

The Lottery is my retirement plan

June 4, 2025

Is this your attitude to estate planning? Do you play the lottery in your state or wager in other ways regularly? In my state of Missouri, the lottery began on January 20, 1986. Do the math. If you purchased one ticket each week from that day to this, you would have spent over $2,000. That does not sound like much over thirty-nine years.

I know some people who “invest” ten or twenty dollars out of each paycheck. That puts you out of pocket up to more than $20,000. Check the lottery website for your state. Statistically speaking, if you put that amount in the bank for the same period, you would still have the money. It would be earning interest.

Do you have that much in your retirement fund? Why not? Ten dollars a week is less than one meal out at most restaurants. Do you smoke, or drink coffee, sodas, or beer? Could you give up that much of those for your future? We don’t think about it that way.

If your employer offers a matching plan on a 401k account of up to four percent of your annual wages like mine did this would take away about $2,000 each year from your salary. They added that to my investment. I quit buying vending machine food at work and saved that much. I could pay my bills with forty dollars less each week. That would be $90,000 by the time you retire. Add the interest to that.

Remember that some accounts compound interest daily. At 5% in 45 years, you would have more than double what you put in, as interest in your investment. The amounts will vary. Check with your company or bank for a return on what you can afford. I think you will be surprised. A financial planner can help you as well. Make sure you get their charges in writing before they receive your money.

Some people will offer unheard-of returns from speculating on a wild shot. These are usually no better than the lottery. Before-tax money may not be the way you want to invest. That money may not be able to be removed before you reach a certain age.

The mantra to remember is to start early in your career and invest what you can from every paycheck. Most of us do not start saving on our first part-time job in high school or college. A friend of mine taught his children by buying them a used car when they turned sixteen. He and his wife required a payment like a loan company would charge on that purchase each payday. When their child decided they needed to finance another vehicle they would give them a check for the money that had been paid to them plus the interest earned at the bank.

That amount was how much the next purchase could be. These students learned it was better to pay themselves and let the bank pay them than pay interest to loan companies. I wish my parents had done that for me.

Think about how you spend, invest, or waste the money you earn. Wisdom does not have to come with age. Begin wisely and things will get better for you as your responsibilities increase. Do not learn it the hard way like I did.

©Copyright 2025 by Charles Kensinger