Book Review – Thou Shall Prosper: Ten Commandments for Making Money by Rabbi Lapin

Most financial books are written by businessman and other people who either have educational or street credentials. Personally, I would rather read and learn from someone who has street credentials. These are the people who have applied their philosophies to succeed in their personal finances. The book, “Thou Shall Prosper: The Ten Commandments For Making Money”, was written by a Rabbi. Not just any Rabbi, but a Rabbi who has a successful business. He practices what he preaches.

This is one of the best books on personal finances I have read. Its practical lessons incorporates Jewish teachings and current topics to reinforce his lessons (or commandments) on making money. His perspective on using the Jewish faith to discuss about money is intriguing and effective. Unfortunately, in our present culture, money is looked upon negatively. Even though people pursue it everyday (by going to work or business), it is generally accepted to just have enough (e.g. scarcity) rather than a lot (e.g. prosperity).

The first commandment and principle is to believe in the dignity and morality of business. There is true dignity and morality when you do your business dealings properly and ethically. Most of the time you will hear from our media about the negative aspects and effects of business. You will hear about the fund manager who swindled his clients billions of dollars.

You will hear about the banker who cheated customers on millions of dollars. You will hear about a retail store overcharging (and under delivering) to their customers. It would seem that these are common and generally accepted business practices. This could not be further from the truth. As Rabbi Lapin demonstrates in his book, there is more dignity and morality displayed in a prospering business than an “efficient” government program.

There are nine more lessons or commandments that are helpful to become a prosperous person. These include about being generous with your charity, extend your network, know thyself (Socrates would love this lesson), know your money, and never retire (very important to practice). Most people are trained to work for several decades then retire. Retirement is a state of mind. When you are working and being productive, you will be prosperous. Just like exercise and proper diet, you want to continue to work and become prosperous. This will give you longevity in your life. Also, it will give you a quality style of life and life style.

This is an important book to read on your personal finances.

Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.

NO CREDIT

No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

· Student Loans

· Secured credit card (includes a down payment amount)

· Being added to a parent’s or spouses good credit: card, car loan, etc.

LOW CREDIT

Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.

INCOME

Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.

PURPOSE OF THE LOAN

Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.

BLACKLISTING

If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.

NO CREDIT CHECK LOAN

If you need a loan now, but are concerned that you might not qualify for a personal line of credit, you can qualify for a No Credit Check Loan. You could be on your way to a better financial future in no time!