Borrowing, and Debt
we all tend to use terms like "credit", "debt", and "borrow"
almost as if they are the same. But there are distinct differences between the
three. You have credit when you are given the right to borrow. When you use that
"right", you are actually borrowing. And until you repay, you are in
doesn't seem to bother many of today's buyers. Trade deficits are in the billions,
and national debt are in the trillions! The national debt would work out
to about $25,000 per citizen! And the invitations continue: "Interest free
on your credit card!".
money has its price. Credit cards make it much easier. Anytime you use credit
to borrow money, you precommit your future income. The effects can range from
inconvenience to financial disaster.
people justify indebtedness with the thought that they are making an investment
when they purchase items.
is an investment? Something you put money into that is growing in value or has
an economic return. Therefore, a car is almost never an investment. Rarely does
it grow in value or have an economic return. A home may fulfill that defination,
but its primary purpose is not to make money but to provide shelter. Follow the
Sequential Investment Strategy
step by step and you can grow prudently rather than jumping ahead into risky ventures
you're not prepared to take.
so, we need to step back and gain some prespective on investing. While He encourages
us to be wise managers, He also wants us to maintain balance in pursuing our financial
goals. So here's a timely reminder from His Word:
not overwork to be rich; because of your own understanding, cease! Will you set
your eyes on that which is not? For riches certainly make themselves wings; they
fly away like an eagle .... (Pro 23:4-5)
There's no get-rich-quick scheme in His Word you can follow. If you pursue money,
it will only fly away from you faster. And lead you down paths that head toward
of excess cash flow should be made with a sound strategy, pure motives, and diligent
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