Investing 101, simple as planting a seed

First plant your fields;
 then build your house.
Proverbs 24:27

Cars, clothes and holidays to warm sunny places. It's such a nice feeling to enjoy the fruits of your hard work.  The challenge is to achieve a balance between sowing (earning) and reaping (spending).

To help us understand this proverb here is a simple investment principle for you.

Assets put money in your pocket                   Liabilities take money out

In this proverb fields represent the ability to generate income.  By planting your field you are creating an investment that will return profit in the future, an asset.  Therefore this proverb is saying that it's important to secure your financial security first before spending your money on things that aren't necessities and keep costing you money, liabilities. And as much as I try to justify it to myself an expensive car is not an asset.


There is light at the end of the tunnel.  The proverb doesn't say not to build your house, it just shows us how to do it responsibly.  There are many people who have spent their early years building their assets to such a point that they earn a large income without even getting out of bed.  Being in such a financial position as this provides you with endless opportunities for not only using your finances but also freeing up your most important asset, your time.


It's simple, don't spend money you don't have.  If you want to spend money, build assets first and then let them finance your expenditure.