If you are poor you are poor and you have to cut your coat according to your cloth, how ever poor that cloth might be. If you are in debt you have entered negative territory and someone else owns your coat. Any effort you put in to struggle free is absorbed by your debts. You cannot save a little to see you through. You cannot invest a little surplus to improve your lot.
Avoiding unnecessary debt is one of the first things a wise person should learn. The trouble is that governments have created a system of money based on paper that can be manipulated. It is possible for people to run up debt and then have it considerably reduced by inflation.
The common sense saver who prudently avoided borrowing feels cheated, as their savings lose value. In this unnatural situation the wise loose out to the witless. Is it a form of cheating or redistribution of wealth? How many times can you con people into working hard and saving if their spendthrift neighbor is the one who ends up with a big grin?
Showing posts with label borrowing money. Show all posts
Showing posts with label borrowing money. Show all posts
Saturday, June 26, 2010
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.
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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