The Macmillan dictionary describes “faffing” as – to waste time doing things that are not important or necessary, an act, which is a complete waste of time. The repetitive bombardment of news & views – a lot of which is gas (reminds you of a recent TVC of a deodorant brand); through multiple media, takes a heavy toll on our sensory mechanisms.

This may lead to confusion in the mind and subsequently, wrong decision-making or no decision-making. The consequence of the latter, sometimes, is better than that of the former, but, continued for too long, can lead to long-term damages. If I am sounding too technical, you will have to forgive me. Without a basic understanding of the relationship of cause and effect, we will never come to grips about why we make common mistakes. As part of my vocation, I work on how to use debt to create assets while avoiding common mistakes that may lead to a failed stress test or an eventual debt trap.

The test of a ‘good debt’ should include whether the repayment period is less, equal to or greater than the period of benefit accruals from the ‘purchase’ or ‘investment’. Simply, is it a case of deferred gratification versus incidence of costs ‘upfront’, relatively speaking? E.g. taking a 20-year loan for a home, which will be, used for a lifetime. An exact opposite could be, going on an overseas holiday now (immediate gratification), financed by a loan, with a loan repayment over the next 3-years (deferred cost). Likewise, there can be other tests – is the recurring ‘debt service obligation’ plus recurring expenses, within a reasonable percentage of the monthly income or cash inflow, of the person/family? What is the ‘margin of safety’? So on. I came across an article on the subject in a popular website, by a respected professional.

The article makes some observations, which are highly questionable, if not confusing, for a lay reader. Capitalism ensures spending is easier than earning, it says – Are not spending and earning two sides of the same coin. Is the aggregate spending, not equal, to the aggregate earning. Somebody’s spends results in somebody’s earnings, simple, is it not? Probably, what he meant was – it drives consumerism at the cost of saving and consequently asset building? I am not sure, I am guessing.

The author signs off, saying, it will be a good idea to consult a Financial Planner before taking any loan. It is not my intention to question the competence, capability and the intention(s) of the Planner community. However, let me ask you, Dear Reader – Do you know how to choose your Financial Planner? Do you know how to assess the qualities of the Planner? Do you want guidance or do you want to create ‘dependencies’ for decision-making? The gap in your ability to make these judgement calls is precisely what should be the focus area of the media – How to choose a Financial Planner? What are the tests of good debt versus bad? Etc. The long-term consequences of a wayward media are damaging both for the individual and for a society, with no formal social security structures. Of course, I am not making a case for state allocations funding individual financial imprudence! The ultimate test of a media byte will be in whether it is worth ‘saving’, for future reference like an asset, or whether, it is immediately (or, within 24 hrs.) marked to the trash folder like an ‘instant’ consumable!