Bikini Season and Borrowing Money (A Wiser Way to Look at Debt)

I read this proverb the other day and it made me think about debt in a deeper light.  The proverb does not directly address the practice of borrowing, but a closer look reveals its connection to leveraged living:

“The prudent see danger and take refuge, but the simple keep going and suffer for it.” (Prov. 27:12)

How does this proverb make me think of debt, you ask?  Simple: The wise live looking towards the future and responding to its projections, while the unwise live as if tomorrow (and its consequences) will never come. 

The wise look down the road and prepare for what they see coming.  I have read in countless books (Christian and secular) that a common characteristic of successful, purposeful, and “inspirational” living is the ability to think long-term.  I have found this to be true in experience as well.  Those who live a life worthy of respect often are future-oriented people.  My experiences and the proverb above leave me the following principle:

The wise decide what to do based on what will happen tomorrow; whereas, the foolish decide what to do based on what will happen today. 

The wise pass on an extra scoop of ice cream because they know “bikini season” is just a month away, while the foolish dig in and then wonder why they are too embarrased to spend a day at the beach.  Now that is funny example, but it bears a lot of deeper implications.  The Bible clearly challenges us to look towards the future and make the best possible decisions based on future outcomes.  Is not living for the life-eternal the perfect and simplest example of this? 

So what does this have to do with Debt?

Simple.  It is always wisest to make financial decisions based on their future implications.  Walk away from “12 easy payments of $199″ and think about the best way to use $2388 (12 X 199) instead of dwelling on how nice it would be to have a 66 inch plasma to watch the Superbowl this weekend.  When thinking long-term, debt almost never makes sense.  Yet, it always appeals to our desire to have our wants satisfied today.  Watch out!  Lest you, “keep going and suffer for it.”