Being in the holiday spirit is the time you are most likely to let down your guard and sign up for an instalment sales contract you may regret later. Wealthy people like us don't have to worry about excessive debt. The truth is the wealthier one is, the greater access one has to credit facilities, and therefore the greater the temptation to shop till you drop. The Sandton sheriff of the court is kept busy delivering scores of summonses each week. The truth is if you believe the carefully concocted ads designed to make you feel good about being credit-worthy and one of a chosen few, and you act on their message, you will lose your freedom and financial independence.
Real freedom is to be footloose and debt-free.
But when it comes to personal investing, says Vorster, the golden rule is that you don't buy speculative investments with borrowed money. You have too much to lose if the value of the investment falls below its original cost. Money is the root of all evil. There is nothing further from the truth. We all need money.