Oseola McCarty – Our Key Learnings

Before we share our takeaways, learnings, here is the brief about Oseola McCarty 

Oseola McCarty was an African-American laundress from Hattiesburg, Mississippi, who became known for her act of generosity in donating her “life savings” to establish a scholarship fund for students in need.

Born in 1908, McCarty worked as a laundress for over 70 years, saving up money, by living frugally and investing in savings bonds.

In 1995, at the age of 87, she donated USD 150,000 (approx. Rs.123 Lakhs) to University of Southern Mississippi (USM) for establishing the “Oseola McCarty Scholarship”, which has since helped countless students from low-income families to pursue higher education.

McCarty’s act of philanthropy received widespread recognition and she was awarded the Presidential Citizens Medal by President Bill Clinton in 1996. She passed away in 1999 at the age of 91.

Our Personal Takeaways:

1. She lived frugally (Income > Expenses), thereby saving money
2. She invested in Savings BONDS (India Equivalent is PPF, EPF etc), instead of keeping the money in Bank Accounts.
3. Leveraged the power of compounding
4. Used her wealth / savings for education, empowerment

We have summarized the learnings in a two minute video – and here is the link – https://bit.ly/r3oseola

1. We need to do a “Budgeting” periodically (say weekly or monthly or quarterly)
2. Ensure Cash Inflows (Salaries, Interest Income, Rental Income, Dividend Income, Business Income) > Cash Outflows (Expenses)
3. A percentage of income has to be saved (Say 10% or 20% or more)
4. Achieving a corpus of Rs. 1.2 crores (120 Lakhs) does not necessarily require you to earn a very high income.
5. It can be accomplished by practicing self-discipline – by living frugally and making wise investments decisions.

Image courtesy: Guidepost