If it were not for debt most banks would go out of business, for banks live because debt is a recognised factor in business.
The plan of getting rich through saving is a very difficult and practically impossible road to wealth.
The woman who is working herself out of debt puts in better effort and longer hours into her business than the woman who does not owe a cent. Go in debt reasonably and carefully, and you can make money with other people’s money.
Money has a fixed value in itself in the matter of earning capacity. This fixed value is 5% or 6% or 7% as the case may be. One who puts her money in securities gets her money which the cash earns without effort on her part. The hustler, however, can make 10%, 15% or 20% on the money, plus her hard work. Therefore there is an opportunity for a hustler to borrow money at 5% or 6%, and with that money and his energy earn 10% or 15%.
The active woman can therefore pay 6% per annum for money, and use that money to discount monthly bills at from 2% to 5%.
The building and loan association, the instalment firms and monthly payment real estate concerns show what people can accomplish who go into debt. Thousands of families now live in their own homes because they went into debt. Few of these families would have homes if they started in on the saving-the-money-first plan and bought for cash.
Don’t go in too deeply. Calculate your earnings in business. Allow a wide margin for discount on your figures. Hard times and unlocked for reverses come, therefore you should play safe. Go into debt on a 25% or 50% basis of what you are reasonably sure you can pay.
Up to forty years of age a woman is sowing and tilling, and after forty she reaps. The farmer goes into debt during the spring and summer, and reaps in the fall.
Very few of our great women had much money before they were forty years old. Up to forty is the debt period. Up to forty a woman pays interest; after forty she collects interest.
Business calls for the hardest kind of work up to forty or fifty. After that time the woman makes up in judgment and experience what she lacks in physical activity.
Work hard until you are forty. Go into debt and make the money you have borrowed earn money. After forty make money by investing your funds in sound securities, so you will run no risk of losing what you have worked so hard for during your younger days.
The woman born with a golden spoon never knows what hard work is. She does not go into debt because she has plenty of money for her requirements. At forty she has not the experience of her sisters who were born in an environment of hard work and little money. The law of compensation thus bestows a subsidy on the poor girl and a handicap on the rich one to even things up. The poor girl goes into debt and works hard; the rich one lets the money do the work for her.
There is no joy or happiness in the possession of things we have not worked for, so while we envy the rich who have never worked we should take satisfaction in the law of compensation which gives us a subsidy in the way of ability to work hard and earn money, so that later on we may enjoy the money better than our rich friend who has never worked for her money.
Don’t go into debt on the wholesale plan, hoping to make a big coup. Don’t try to be a millionaire. Don’t set too big a mark. Have your ideal advancement, no matter how little that advancement is. If you go forward each week or each year you will find at forty or fifty that your substance piles up much faster than you imagine. From forty to fifty years of age most fortunes are made. From twenty to forty your efforts have been foundation work, and the foundation does not show up much above the ground. From forty to fifty you are building the superstructure, and when you commence building that your progress seems more rapid.
Healthy indebtedness is a great incentive to hard work and a material benefit in building character and gaming experience that in later that in later years will be of untold value to you.