Dangerous Promises | Money Advice, (Part 4)
1 My son, if you become surety for your friend,
If you have shaken hands in pledge for a stranger,
2 You are snared by the words of your mouth;
You are taken by the words of your mouth.
3 So do this, my son, and deliver yourself;
For you have come into the hand of your friend:
Go and humble yourself;
Plead with your friend.
4 Give no sleep to your eyes,
Nor slumber to your eyelids.
5 Deliver yourself like a gazelle from the hand of the hunter,
And like a bird from the hand of the fowler.
Proverbs 6:1-5
My dear VPGs,
Let’s sum things up today.
Yesterday I encouraged you to not become the “surety gal or guy.” Today I want to encourage you to also not be on the other side of the trade: the one asking for surety.
Don’t become the guy or gal who needs surety!
“And the LORD will make you the head and not the tail; you shall be above only, and not be beneath, if you heed the commandments of the LORD your God…
From Deuteronomy 28:13
(a Part of Nana’s daily prayer she prays over you)
First of all, don’t ask for money, period. Money complicates every relationship, even the closest.
If you have to have someone guarantee your loan, then chances are you would be better off waiting. Remember: Better to be a poor free man than a coddled slave.
Even with your parents, don’t expect anything from them. They may want to help you and when they do be grateful and honor their investment in you by handling their gift responsibly.
But don’t expect them to buy you a car, pay for your education, and provide room and board once you’ve left home. Buy your own car, pay for your own meals, earn your own way in life. The goal (under God) is to be self-sufficient. That is a sign of real maturity.
Your parents gave you life, provided for you and protected you when you couldn’t do it for yourself, they have given you a good name, and a faith that will get you through life and into heaven. If they never do another thing for you, that is enough for you to honor them eternally.
And once you’re on your own, keep your personal finances private. No guarantors! That’s the rule. And even bankers must be kept at bay. Remember, your banker, your lawyer, and your doctor will be friendly but they are not your friends. Think for yourself, be your own man or woman!
(Of course you may have a friend who happens to be a banker, etc., but don’t impose on that friendship by expecting favors.)
And handle credit cards like they are radioactive. A small balance carried over to the next month has a way of compounding into an atomic bomb that will blow your life up.
Use debt sparingly – very sparingly. And if your signature is not enough to qualify for the loan then wait. Your name (character, resources, and reputation) is what must carry you through life. Don’t ride on the coattails of others.
Should you decide to start your own business, don’t underwrite it with your private finances! (Like mortgaging your home, that’s putting others before your own flesh and blood.) Find partners, not guarantors who will put their own money into the venture. You want to have people with you who have skin in the game, not people who will come looking for your skin if things don’t work out.
Let me close with this little road map for financial success, I call it the 10-10-80+ Rule…
Pay God 10% of your income (tithe)
Pay yourself 10% of your income (investments, not savings for future purchases)
Live gratefully and guilt free off the 80%.
And then, change the formula 1% every year so that in 40 years you are living by the 40-40-20 plan. That is the formula for being the head and not the tail and for never needing a guarantor except God.
Praying for your prosperity,
Your very own papa
Prayer: Father God, please help my grandchildren to take seriously the privilege of living in a country that embraces capitalism. This is a rare privilege and comes with great responsibility. Protect them from having an entitlement mindset, and help them to have given far more than they received when the final tally has been made.
All for your glory and the advancement of your purpose. Amen.
