This article states that Canadians are the most indebted people in the world. The problem with most people, especially the younger ones,  is that the bulk of their debt is used for the wrong things. Buying a new car or a bigger TV set of video games or overseas holidays is not a wise use of debt. So what is?

Remember the parable in the Bible about the talents (money)? A master puts his servants in charge of his goods while he is away on a trip. Upon his return, the master assesses the stewardship of his servants. He evaluates them according to how faithful each was in making wise investments of his goods to obtain a profit. It is clear that the master sought some profit from the servants’ oversight. A gain indicated faithfulness on the part of the servants. The master rewards his servants according to how each has handled his stewardship. He judges two servants as having been “faithful” and gives them a positive reward – “thou good and faithful servant” because they invested his money and doubled it.  To the single unfaithful servant who “played it safe” and hid his master’s money, returning the original amount, a negative compensation is given – “you wicked and slothful servant!”

This tells us that we should invest what we have in order to earn more. But what if you have nothing to invest? Should you borrow to invest?

Those savings that are lying in a box under your bed will lose their value over time due to inflation. They might as well be slowly chewed away by rats. While it’s smart to have a “cushion” of savings to prepare for the proverbial rainy day, we need to think like farmers. In fact, most of the Bible was written with entrepreneurs and farmers (who are also entrepreneurs) in mind. Many scriptural illustrations reveal that: These parables of the sower, the weeds, the mustard seed, the yeast, the net, and the Pearl of Great Price, to name but a few. They all talk about building wealth!

Your new car is based on ego. 80% of millionaires buy used cars. Most ego-driven purchases are a waste. Keeping up with the Joneses? Ego. Must have the latest phone, even though you don’t need it? Ego. Bigger TV? More clothes (men)? all ego. Truly successful people are not ego-driven; they invest wisely. They will borrow to build their businesses, to invest in a better future. After all, isn’t that why you have a mortgage on your home? We bought a two bedroomed apartment using a mortgage – borrowed money – in 1998 for $139,000. We will sell it for around $475,000 now. And along the way, we could use some of the equity to build our business.

I don’t recommend you ask a so-called “financial planner” about investing: I recommend something that YOU control, like your own business, in which you can use your strengths and avoid having to use your weaknesses – a business where you do what you’re good at and enjoy and can bring a lot of value to many people. And I don’t mean Network Marketing or get-rich-quick schemes or Bitcoin.

Read these parables and think about them, Evaluate your present situation. Consider your options objectively. Contact me if you have any questions.

Robin Elliott   IPS Safety Inc.