The Wise Man Has Something to Say

Since I'm a man of the cloth, I think that it's time to offer up some wise words in this season of crisis marked by wasteful spending, tax hikes, "porkulus stimulants", the bear market, bad mortgages, bailouts - well, you know the picture as well as I do. We're hearing it every day and there seems to be neither any getting off point nor brakes on this run-away train.

Now, the wise words really don't come from me - they come from the Good Book, otherwise known as Holy Scripture. You'll find there some sage wisdom from someone named Solomon. Except for one Jesus of Nazareth, Solomon is considered the richest man and the wisest man who ever lived. So, I think it's time we hear what he has to say, since he being dead yet speaketh. I'd say he's qualified to offer up some sound financial advice and hopeful words for these troubled times.

Here goes. Maybe just think of these as some financial lessons from someone wise. You can find your Bible somewhere nearby and check it out. It's all found in a rather obscure book called The Preacher, or the book of Ecclesiastes. If you can't pronounce that big word, that's okay. The words found therein are still good enough to follow and understand, even if you can't get right the name of the book.

First lesson. Money does not satisfy. Now, you've probably figured that out by now, but Ecclesiastes says that he who loves money will not be satisfied with money. Loving money is a dangerous thing. True satisfaction doesn't come from getting married (as much as I enjoy being married), it doesn't come from a bigger house, it doesn't come from a mil in the bank, or can you believe this - from being retired. What is interesting is that when we get our focus off of getting more money and more things, then they seem to start appearing. I guess this is what is meant by seeking first the kingdom of God and his righteousness. Not a popular message - but it's still the truth anyway.

Second lesson. Diversify your investments. The Preacher says to divide your portion to seven, or even to eight, for you do not know what misfortune may occur in the earth. I think I get a couple of things out of this instruction. I like the balance of having seven or eight eggs in the basket rather than just one that leaves us with nothing if things turn out bad. But also, I think not 200 miniscule eggs either that are worth next to nothing individually. Get it? In this case if any one investment performed very well, it would make little impact on the entire portfolio. But if you had seven investments and any one of them performed well, it would have a decent impact on the entire portfolio. Think about it.

Third lesson. There is never a perfect time. This obscure book reminds us that he who watches the wind will not sow and he who looks at the clouds will not reap. Some of us find ourselves waiting to do something because we are waiting until there is no risk involved. Hey, I guess that's just human nature. We want to avoid the risk of bad things happening to us. Truth is, no matter how much we try we cannot totally eliminate all risk in life. Any time we step out into anything there will be some level of risk, but that is not an excuse to avoid action. Step out and be one of those people who realizes that the perfect time is now.

Fourth lesson. Work smarter, not harder. That's nothing new. The wise man reminds us that if the axe is dull and he does not sharpen its edge, then he must exert more strength. Sometimes the most effective thing we can do in life is rest or take a break. It's really not counterproductive. Resting allows for more production on your productive hours. My best successes in life have been during those times when I asked myself if I was working hard or working smart. If we only focus on working hard without actually thinking whether or not it's the best thing to do, then I'd say you could be wasting your time with a dull axe.

Solomon put it right. We do well to listen.