DON’T BORROW MONEY FOR NEEDLESS EXPENSES
It is a common business transaction to borrow money when there are sufficient assets to justify it. But in such cases there is a regular rate of interest fixed by law as payment for the use of the money borrowed. You can not risk any other than the legal rate of interest, if you do you are taking unwarranted risks, and subjecting yourself to the yoke of a loan shark, out of whose clutches you can never emerge without tremendous sacrifices, often ruin.
Money borrowed to speculate with is a heavy and dangerous burden on the borrower. When he loses, he not only has nothing to show for his folly, but is goaded into borrowing more in the hope of making good his loss. Once in the toils, he will not stop until ruined financially—perhaps morally. If he wins he will still pursue the phantom fortune on borrowed money and lose finally. Speculation is a gamble with the odds against you.
In speculations, “Neither a borrower nor a lender be.”
If you have to borrow money to complete or perfect some transaction or business deal, or to carry you through, or tide yourself over some delay, you can always get it at the regular rate of interest, provided you have reputation, and security. But do not mortgage your clothes, furniture, etc., for anything but an absolutely necessary loan.
Remember always, that money borrowed and spent is a hardship to return unless you have the wherewith in the way of business to make good.
If you worked half as hard to get money for your own pocket as you do to repay a loan, you never would need to borrow.