Friday, March 30, 2007

"Other People's Money": No Such Thing

I've been hearing this a lot lately from some part-time entrepreneurs. The idea is to get a loan to start a business or buy real estate. A lot of midnight infomercials promote this strategy.

Here's the problem:

Proverbs 28:19-20
He who tills his land will have plenty of bread, But he who follows frivolity will have poverty enough! A faithful man will abound with blessings, But he who hastens to be rich will not go unpunished.

I think there's lessons to be learned and character to be built when we are forced to slow down, save up and take our time before jumping into a business venture. Also, going into debt is not the wise way to proceed, in business or in personal finance.

Proverbs 22:7
The rich rules over the poor, and the borrower is servant to the lender.

If you think borrowing money is smart because you are using "Other People's Money", then see what happens when you miss paying a note or three. You will definitely discover the context of being a servant to the lender. Making payments ties up your money, when it could be used to build up savings or reinvest in your business. There is also an emotional and spiritual effect of having the bank own your home, car or property. It's hard to explain, but think about it and it'll sink in.

Granted, many people have done this and have become successful. But, the risk is very high and with the scriptures in Proverbs 28 & 22, God seems to be strongly encouraging us to take our time. Maybe so He is allowed to open doors that need to be opened and shut the ones that need to be shut.

Using "Other People's Money" is not only going into debt, but it bypasses being diligent by not taking the time to save up. It's the quick and easy way. Nothing great comes quick and easy, maybe something good, but not something great. Some scriptures on diligence.

Proverbs 10:4 Lazy hands make a man poor, but diligent hands bring wealth.

Proverbs 12:24 Diligent hands will rule, but laziness ends in slave labor.

Proverbs 12:27 The lazy man does not roast his game, but the diligent man prizes his possessions.

Proverbs 13:4 The sluggard craves and gets nothing, but the desires of the diligent are fully satisfied.

Proverbs 21:5 The plans of the diligent lead to profit as surely as haste leads to poverty.

All we've got to figure out now is if God is smarter than us or are we smarter than Him?


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