Page 72 - Managing Your Resources - Student Syllabus - short combined

For example, in India, widows often start a business. They have to purchase a few
cows, and then sell the milk each day to provide for their livelihood. The capital
investment is the amount of money that is needed to purchase the cows. Once the
cows are producing milk, then some of the generated income can be used to repay
the business loan, while other income can go toward meeting personal needs.

The amount of the capital investment depends largely upon the type of business you plan to start. A
good practice is to start a business that requires skills you already possess and that require the smallest
capital investment. Once that business is generating income, use the extra income to reinvest into your
business in purchasing items that can build the volume of your business return. Your goal should be to
repay your business loan as rapidly as possible.

Quite often you can take a business with you. This means, if God asks you to move on, you may be able
to port the business to a new location and continue repayment of your debt. A business, depending on
the type, provides you flexibility to respond to God’s will for your life.

Again, a business is normally an appreciating asset. As the business grows, the value of the business
grows.

What NOT to go in debt for…..

1. Monthly living expenses which include food, clothing, utilities, etc.
2. Automobiles or other forms of transportation.
3. Home appliances or furnishings.
4. Weddings
5. Dowries (with some exceptions).
6. Recreational activities
7. Attending Funerals
8. Education (tuition)

The items in this list are either non-tangible items (which have no value in themselves) or are
depreciating items (lose their value over time). For example, if you purchase a car for $20,000 brand
new, drive it for five years, then want to sell it; you may only be able to sell it for $10,000. Half of the
value of the asset has been lost due to depreciation. Borrowing money to pay for these items will not
return any future revenue to you. Once spent, the money is GONE, never to be recovered.

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