What a sad story! Today's Wall Street Journal (WSJ) reports that even churches are being auctioned in the USA; not one or two, but more than 10, all at once, in the article entitled "In Hard Times, Houses of God Turn to Chapter 11 in Book of Bankruptcy".
One story talks about promised money from churchgoers that never arrived. In fact, the churchgoers stopped going to the church thereafter, and thus, the particular church could not meet its financial obligations to pay its loan borrowed for the expansion of the church.
The issue here is not about the church per se, but about how we manage money. The lesson to be learnt here is that we should never borrow money to finance projects that do not generate a Return on Investment.
In a similar vein, we should not borrow money to renovate our homes. If we have the cash money to do it, by all means. If not, wait till we have the money.
The same goes for the Government of any country. Many Governments spend on all kinds of construction projects without taking into account how they will repay the money they borrowed to finance such projects.
Hopefully, we have learned a useful lesson. Let not this sad story go to waste, by making the same mistake some day.
"Neither a borrower nor a lender be".
The only exception - when there is a realistic, attractive Return on Investment on the borrowings that enables us to repay the loan.
"Neither a borrower nor a lender be".
The only exception - when there is a realistic, attractive Return on Investment on the borrowings that enables us to repay the loan.
Best wishes,
Ooi
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