The teachings of Ninomiya Kinjiro

 I was reading the newspaper the other day and came across an article that said, "Ninomiya Kinjiro was a super financial planner," which piqued my interest, so I borrowed several books about Ninomiya Kinjiro from the library and have been reading them. They're incredibly interesting...

I'm still in the middle of reading them, but they're so fascinating that I just had to write about them here.

Ninomiya Kinjiro is known for his statues of him reading a book while carrying firewood on his back, which are erected in elementary schools all over Japan. Apparently, he was the second most famous person in pre-war Japan after the Emperor. Well, he's a symbol of a diligent boy, just like the statues depict, but what did he actually do?

It turns out he was actually a highly skilled financial planner!

Wow!!

Apparently, he was skilled at increasing wealth, and he had a reputation at his workplaces for being someone who would always bring back more money if you entrusted it to him. His skills were so highly regarded that he was entrusted with the task of restoring the finances of samurai families and feudal domains burdened with debt, and with revitalizing impoverished farming villages and territories, all of which he successfully accomplished.

In one such case, he apparently even resorted to a daring tactic: to repay a debt, he borrowed money at a low interest rate, lent it out at a high interest rate, and used the profit from the difference to pay off the previous debt. Amazing! He wasn't just an ordinary diligent boy.

While this might make him sound like a greedy person, his goal wasn't simply to make money; he was a man who only cared about "helping people escape poverty and live prosperous lives." This is where he differs from today's investment fund managers. He had high ideals, but he was also a pragmatist, so he viewed and utilized money with a critical eye.

However, borrowing money at low interest rates and reselling it at high interest rates is a bit... That wasn't his usual practice, though. His usual practice was creating a system of "interest-free loans to those in need," which he apparently called the "Hotoku Loan." That's admirable. It also aligns with the Islamic teaching that "interest should not be charged."

Kinjiro was truly a remarkable person.

And his teachings, in summary, can be divided into three points:

1. Work diligently (Diligence)

2. Live within one's means (Moderation)

3. Give away surplus wealth (Giving)

Number 1 is pretty much what you'd expect from Ninomiya Kinjiro. First, work and earn an income.

Number 2, living within one's means. It means not letting expenses exceed income. That's obvious, isn't it? However, this is surprisingly difficult. We often succumb to greed, worry about appearances, put on airs, and live beyond our means. Then they run out of money. So what do they do? They borrow money. Loans accrue interest. This way, the debt keeps increasing until they can't repay it. When they can't repay their debts, their land, house, property, and even their daughters are all taken as collateral. Ah, the family is ruined. The domain is ruined. The shogunate is ruined. And incidentally, present-day Japan and America are also ruined by debt. No matter how you look at it, that's the only way it will go. Should we ask Kinjiro to rebuild? As Minister of Finance or something?

Regarding point 3, handing over one's assets, this is tough, apparently his disciples said, but he advised handing them over next year. That means saving. Then handing them over to descendants. That means inheritance. And then handing them over to society. So he's not saying to suddenly donate your assets. First, you should start by handing them over for yourself, for your own future. That's doable.

And if you follow these three things, wealth and prosperity are guaranteed. He also said it's the secret to eternal wealth and prosperity. Leaving aside points 1 and 2, the idea that giving in is the secret to wealth and prosperity (point 3)... well, there seems to be a profound truth to it. It seems to mean that if society prospers because of your compromises, that prosperity will inevitably return to you, making you even wealthier.

Even so, Kinjiro said something truly insightful. The more I think about it, the more enjoyable it becomes, but I'll leave it at that for today.

Guided by love and compassion

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