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Would We Be Better Off If We Listened to Some Old Wisdom?

Updated on July 20, 2012

In these times of austerity, high unemployment and recession it might be time to stop and think "how did we get here", "how did it come to this" or perhaps "how can I make sure that this doesn't happen to me."

I am sure most readers will remember a grand parent or some other elderly family friend spouting the old cliched line. Lines such as "never go to sleep on an argument" or "a stitch in time saves nine". Perhaps we can apply some of these pearls of wisdom to our current situation to help guide us back to happier times.

Fools rush in where angels (or wise men) fear to tread. Okay this might be a bit retrospective but perhaps if we had a few more angels a few more wise men the whole sub prime GFC thing might never have happened. A few less cowboy bankers chasing the next bonus and a few less people borrowing beyond their means to secure the house they could never afford.

Neither a borrower nor a lender be fairly self explanatory this one. The more money you borrow the more interest you have to pay which reduces your disposable income making it more likely that you will borrow more for your next purchase. As for lending? an individual does not have expertise in assessing risk much less charging a risk premium. If a bank won't lend someone money why should you? Do fools rush in where bankers fear to tread? I would add to this thread never ever go guarantor no matter who asks. Even your own children.

Froth is not beer Thank you Denmark for giving us the answer to Internet touts promising us untold riches for a mere 50 bucks.

Time is Money three words that summarise the time honoured tradition of working for money.

A fool and his money is soon parted. Hmm We shouldn't really point the finger at world leaders and central bankers. Should we?

A penny saved is a penny earned. Ahh saving. Its what people did before easy credit. It's what we tell our kids to do when we are not so good at it ourselves.

Birds of a Feather Flock Together and dance around a pile of handbags in nightclubs.



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    • goosegreen profile image
      Author

      goosegreen 5 years ago

      Thats awesome about your friend. Lend so they stay away. Thanks for your feedback

    • patchofearth profile image

      patchofearth 5 years ago from somewhere in the appalachian foothills

      This is a pretty good hub. I just wanted to respond to the previous comments about lending family/friends money. I too have "lent" money to family when they were in a pinch. I don't ever lend anything I can't afford to lose. I would like to see my money again, but I know that if I am lending them money for something basic, it is likely I will not see it again. If I don't expect to see it again, it does not affect our relationship. Conversely, I had a friend who would happily lend money to people he didn't like, because he knew that doing so would ensure that they would avoid him.

    • goosegreen profile image
      Author

      goosegreen 5 years ago

      Christin,

      Thanks for your comment. I will have to concede that small loans to family members in times of need may be an exception to my "rules" provided that the money is for their wellbeing. Too many people I know of get into trouble with unnecessary recurring expenditure such as pay TV, cigarettes, alcohol, gym memberships etc and then expect a handout to cover the rent. Equally there are genuine hard luck stories who are deserving of our help. The other big consideration with lending to family and friends is how lending or not lending to them will impact on our relationship with them. You can lose friends by lending money.

    • ChristinS profile image

      Christin Sander 5 years ago from Midwest

      I believe we would be better off if we took most of these things into consideration - particularly on the saving part.

      The only part I might disagree with is about lending. I have loaned money here and there to family members/friends who had a need that a bank wouldn't cover. You can't get a loan for 400 bucks for a car repair etc. The banks want you to take out higher amounts so they actually make more money and they now make you jump through incredible hoops to get it. Payday loans are an alternative - but a horrible one! I'd never subject someone I love to that ;)