Thursday, March 25, 2010

Make of thy dwelling a profitable investment

Make of they dwelling a profitable investment. This is the fifth of the seven rules that George S. Clason lays out in The Richest Man in Babylon.

Probably the simplest and clearest of the seven, the fifth rule says to own and not rent your house.

When you rent, you will never see that money again, Clason says. But if you borrow money (ie get a mortgage) when you pay back the money, you will see that money again, and most likely more than you put in originally.

Interestingly, I wonder if Clason would hold to this one as law. Clearly there are times when it is better to rent as we have seen in the past few years.

I guess Babylon didn't have to worry about government spending. I keed. I keed.

blog comments powered by Disqus