Happy Wealth Wednesday!
Now, my intent for today’s blog, was to start breaking down and investigating the fundamentals of living a life free from debt. I know I started life, in my early blogging days with fire and brimstone type rhetoric, however, today, I plan to just keep things simple.
I am going to lay a basic foundation, so we are all singing from the same hymn sheet in the future…
I will be quoting from the Bible – an authority on the topic of debt and life (whether you believe in it or not, it does not take away from the insight it can provide when trying to understand life and money). I will just use one reference, just to keep the blog light, for what can be a very heavy topic.
1. The Borrower is Servant to the Lender – proverbs 22:7
It’s really simple, you can paraphrase, break it down sideways, but it is almost impossible to misunderstand this passage of scripture.
Now, it’s not that debt is necessarily bad, in fact, debt is not bad at all. The Bible makes a big deal about lending to those who are in need – however the caveat to those who lend, is almost always to not really expect anything back in return – so do not treat the money lent as a debt. The obligation to the borrower would be to strive to pay back what was borrowed.
Today’s world is totally opposite, lending is a commercial enterprise, and payment is wholly expected back…and on time I might add!
The Bible is very clear to stay clear from the likes of Usury, an old archaic word, which could be best described as hidden and binding interest. In those days, if you could not fulfil your debt obligation, your children, spouse etc would be made ‘bond’ servants to repay what was owed.
So just for clarity, we live in a world where some people and institutions lend specifically with the intention to bind and demand back more than originally borrowed and if you do not pay back, you lay yourself open for problems.
That is why debt is, in my opinion such a horrible place to be.
Ask yourself one question?
How do you pay back more than you originally borrowed, if you never had it in the first place prior to borrowing?
Most of us are not trained in taking control of our future, we just have great hopes with no knowledge, authority or experience. So to say, I’ll have more to pay back next week or next year, is a dangerous plan.
Why am I labouring all of this?
1. Because it is a necessary reminder
2. To live life with the end goal in mind, not living for today only!
You have probably been told at some stage in your life to cut up your credit cards. Unfortunately, this is not the brightest of ideas. One must first cut the debt mindset out of their daily routine, then you can cut up the credit card. The credit card is not the danger, it’s the one using the credit card, who is the one causing the problem.
It’s that old human nature problem. if you know you can get away with something, you will, more than likely try to. And that area of your conscience being seared, is the underlying issue.
The other reason, is that we need credit cards and debit cards today, you may have noticed that the world is becoming more and more cashless.
So how do we deal with the debt avoidance, if we still need credit cards?
- You can use your own money
- You can remain private if you wish
- No need to create debt
- You can put the power back in your hands
- You can enjoy the perks that a credit card can bring, such as security when purchasing
More about the value of a pre-paid lifestyle to be discussed in next week’s blog.