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

The rich ruleth over the poor is still true in modern times as you can tell by looking around you at society, but the borrower in servant to the lender had become false as you can tell if you are smart or know investing. The Bible is wrong on that score and so is Shakespeare. I write about how borrowing can lead a poor man to wealth in my book the psychology of investing (page 87). The key is to borrow the maximum amount you can get from the maximum number of decent sources at the minimum interest you can obtain for the longest amortization period you can bargain for. Pay back the least amount, slow, and for a longest time possible. Bingo.

Now comes rule 1: Keep good credit, pay on time, borrowed money must be used only to make more money. Do you want to be rich? Don’t break this behavioral finance rule (BFR), no matter what! You want to eat, get a job. You want to invest, borrow money. You want to take a woman out, get 2 jobs. You want to take a beautiful woman out, get a career. Here comes rule 2: Pay the lowest interest loan last, pay the highest interest loan first. Here comes rule 3: Never take a loan on a credit card, always pay the total amount you owe every month from money you have earned, not borrowed! And, here comes rule 4: Study my investing strategy which I call BLASH, which stands for Buy Low and sell High (BLASH). The key is how to find the right company and how to make a decision to buy or and sell, and so on, and, rule 5 says: Buy only companies with great CEO’s. I have Page, Brim, Cook, Besos and  a few more great fellows, what do you have?


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