WISDOM OF SOLOMON STILL NEEDED TODAY

DOLLARS AND SENSE

by Joe Plemon 

Thousands of years ago, Solomon observed, “There is nothing new under the Sun”.  In today’s world of economic uncertainty, Solomon’s financial wisdom is as relevant as if it had been penned yesterday.  I have listed four of Solomon’s proverbs, followed by my comments. 

 ·         “The rich rules over the poor and the borrower is a slave to the lender.”   When the economy is booming we borrow ourselves deeply into debt, naively believing that good times will last forever.  Newsflash: they don’t.  Suddenly, in our recessionary America, everyone wants to know how to get rid of debt.  Debt-free formulas have become as common as weight loss plans.  Debt was bondage in Solomon’s day and it still is today.     

·         “It is stupid to guarantee someone else’s loan.”  Never co-sign for anyone.  The reason your brother, nephew, mother or son needs a co-signer is because the lender knows they can’t pay.   Do them a favor by saying, “no”  or you will end up making their payments and destroying the relationship.  There is a reason Solomon said it was stupid. 

·         “Better not to vow than to vow and not pay.”   Our present mortgage crisis came about by greedy lenders convincing less than savvy borrowers to sign for loans they couldn’t afford.   Why anyone would be surprised by all the foreclosures is a mystery to me, but Solomon lays the responsibility on the borrower.  Don’t’ sign up if you can’t pay.   

·         “Give portions to seven, yes to eight, for you do not know what disaster may come upon the land.”   Long before Wall Street, Solomon understood diversification, a financial term commonly used to describe a balanced investment portfolio.  But Solomon would also encourage diversified income streams, especially during a recession, so a job loss would not be total income loss.       

Who knows?  Perhaps these tough economic times will force us to turn back to old fashion common sense wisdom.  Solomon would be proud.