Sunday, March 23, 2008

He that buys what he does not want must often sell what he does want

This is a caution against being careless with money. The first "want" being used in the sense of "need" and the second "wish to have". If you squander your money on unnecessary purchases you will likely end up losing that which you would rather keep. Ask any bankrupt.

The world's economy at the present time is reeling as a result of too many people living beyond their means and using credit to subsidise an extravagant lifestyle. You need to learn to cut you coat according to your cloth and live within your means. Neither a borrower nor a lender be is a wise old saying that recognises the foolishness and potential danger of debt.

Whilst being debt free is an excellent goal there can be times when borrowing makes sense. The important thing is to look ahead and consider what might go wrong. What happens if you lose your job, if illness strikes or unexpected demands arise on your income? Life can never be risk free but you must be prepared to face the consequences of your actions.

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