A lot wealthy people not smart they just use debt - page 5.

Roseline492

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Quote from: Vinaa77 on June 02, 2024, 10:12:52 PM

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

That's true because getting a loan doesn't determine success but instead the knowledge and experience you have on that particular business is what will help you to utilize the loan very well and perhaps become rich, so that's why getting a loan is good but another thing is using it to establish yourself in such a way that there would be a positive difference in somebody's life, however just like you said knowledge plays a very vital role, so perhaps people should really asked themselves if truly they understand what business they are getting the loan for before borrowing it because there is a higher chance for the business to crash if the person doesn't really understand it very well.

Because I noticed that some persons may not really have passion to venture in some kind of business but the moment they realize that most of there friends are actually making a lot from there business they tend to venture into that particular business without having any idea about it, so we can imagine what will happen to that person because is already obvious that his chances of making it on that business is very slim, so actually having a good knowledge about a business is very crucial before deciding getting a loan.

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Quote from: Vinaa77 on June 02, 2024, 10:12:52 PM

Quote from: batang_bitcoin on June 02, 2024, 06:06:56 PM

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

And that's why they're are the real smart because they leverage the debt that they're taking for their business. Those that take debts but don't do anything with it but to buy their wants, they're not smart. They're spending their money for something that they're not be able to grow so, in the end all they have is a debt. Compared to these businessmen that uses loan, they have a business, they have profit and they're paid off with their debt later on.

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Quote from: alastantiger on May 09, 2024, 03:15:52 PM

Quote from: kentrolla on May 09, 2024, 09:50:24 AM

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If wealthy people use debt to get rich and richer, isn't this kind of like the secret to being wealthy? Poor people should simply follow in that footsteps too. They should go the bank and take out a loan, you it to start up a small business and stay committed to it and when the business booms, they can be able to pay off their debts with the interest. They don't have to take a large amount out as loan initially so that they are not under too much pressure, they should start with something small and build up from there. This is one way that they can build wealth.

Poor people who do not have enough capital must have a strategy to solve problems without leaving problems. Taking a loan from the bank is not a bad decision to start opening a business, but the borrower must have a thorough plan and choose the right business to prevent risks that could hinder paying off debts due to an unstable economic cycle. Everyone certainly wants their business to grow, but this is a matter of luck, at least people who borrow money from the bank must have a little spare money to pay off debts when their business is not running smoothly.

Vinaa77

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Quote from: batang_bitcoin on June 02, 2024, 06:06:56 PM

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

batang_bitcoin

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They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

Akbarkoe

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Quote from: Juse14 on June 02, 2024, 04:35:09 PM

Debt is not always bad, if debt can be managed well it will produce profits. And very rich people are people who are good at managing the debt they have well.

Debt can indeed give rise to an obligation to pay it off along with interest, either every month or within a certain period, according to the agreement of both parties. However, by going into debt we can have something that is beyond our reach, for example a house, for example the house we dream of is worth millions of dollar, we can buy it by saving, but how long will the funds be collected. full? Not to mention that the inflation that occurs every year can have an impact on the value of houses and land becoming higher, increasing many times or even the stock can be sold out. So that in the end debt becomes a solution to answer these problems. Because if not, maybe we will lose the opportunity to get that house.

On the other hand, debt can also help us to always be able to get and take advantage of every opportunity that comes. And usually this is done by business people and investors, they use debt to develop their business or get investment opportunities with quite high profits.

Debt is typically viewed in a negative light; however, but if managed well, it can be a very effective tool for achieving financial goals and generating profits.. Those who are able to manage debt prudently and strategically are often among the wealthiest individuals.

The concept of debt can help us acquire something we may not easily attain through saving alone. In a way, borrowing is a pragmatic approach to realizing our aspirations. Moreover, debt offers flexibility which enables us to seize favorable opportunities. In fact, many entrepreneurs and investors leverage debt as a means to grow their business or inject funds into high-return prospects. Through debt, they are able to access supplementary finance required for expanding the business scope, buying new assets or investment in profitable projects

Nevertheless, the primary element in using debt is indeed good management, it should be noted that plunging headfirst into debt without due contemplation and an evaluation of one's capacity to return the funds can spell out grave financial woes.

Moreno233

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Quote from: bangjoe on June 01, 2024, 03:49:21 PM

Quote from: Moreno233 on June 01, 2024, 08:33:00 AM

I agree with you that most of the rich re heavily indebt but there type of debt is different from unproductive debt. Think about it this way, the rich have borrowing power which is a prerequisite to access loans. They have assets that can serve as collaterals and their loans are tied to income generating investment of which the banks and insurance companies shares in the risk. This is different from the poor type of debt in which they borrow to consume. Even if the rich have the money to fund some of their investments, they usually do not like doing that instead they approach the banks for funding and also get the insurance companies involved as a way of sharing in the risk like I explained before. Is this not a smart move?

Using assets as collateral, such as why they buy vehicles and other assets with cash, then they use the certificate of ownership to borrow money from the bank to increase their capital in investing or expanding their business. On the other hand, they get the benefits of one increased capital and secondly they have assets to use and earn more income, but there is also a big risk that if the business or investment does not run smoothly then they will have a very difficult time paying the bills, and it can all fall apart.

This is exactly where insurance comes in, to take away the risk. The rich does not do business without insurance, they pay the premium and does not want to eat all the profits alone. Unlike the poor that consider insurance premiums as being too expensive, thereby exposing themselves to huge risks. I did not study economics in school but I understand how some of these things work. You've got to see the level of risk management the rich employs while doing business, the reason they always remain at the top because they are always one step ahead. They might appear to be in debt but that is not really debt because the money borrowed is productive and brings more money.

Juse14

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Debt is not always bad, if debt can be managed well it will produce profits. And very rich people are people who are good at managing the debt they have well.

Debt can indeed give rise to an obligation to pay it off along with interest, either every month or within a certain period, according to the agreement of both parties. However, by going into debt we can have something that is beyond our reach, for example a house, for example the house we dream of is worth millions of dollar, we can buy it by saving, but how long will the funds be collected. full? Not to mention that the inflation that occurs every year can have an impact on the value of houses and land becoming higher, increasing many times or even the stock can be sold out. So that in the end debt becomes a solution to answer these problems. Because if not, maybe we will lose the opportunity to get that house.

On the other hand, debt can also help us to always be able to get and take advantage of every opportunity that comes. And usually this is done by business people and investors, they use debt to develop their business or get investment opportunities with quite high profits.

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Quote from: bitzizzix on May 13, 2024, 02:49:52 AM

What is confusing is that rich people are not good at using debt, and if rich people are not smart why do they have to borrow money and what is the money for? Because most rich people borrow money because they have the intelligence to back it up so they can use debt for business, buying assets and so on to make more money.
And in general, smart rich people are people who borrow money from the bank and this is real, because my big boss also does it, not people who keep their money in the bank. Rich people are smarter people, so they borrow money to make more money supported by their knowledge and skills, which means rich people are generally smart.

To me, if the debt is properly applied, that's, if it is used to improve or to support the business, then I think it's even what we call smartness. in our today's economy, one should learn how to use his thinking faculty to take some risk wisely and with goals. Rich people mostly seem to be so Smart and they behave smartly and this is one of the way they behave in such manner. Instead of using what is in their hands to get what they want, they use their brains and use other people's funds to invest and enrich themselves. maybe this is what they call leverage debts.

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They do not like debt, but they need funds for their large projects, and banks trust them to repay or have sufficient collateral to support their borrowing. However, some countries, especially in the third world, do not have financial systems capable of supporting such borrowing. Debt is far better suited for investment than for daily living expenses, and this is a principle the wealthy exploit effectively

MissNonFall9

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Looking at modern times we will realize that every big businessman raises their capital and business by taking loans. After setting up a business in this way, they repay some of the debt with a share of the profits and later take another loan. These borrowings and repayments are cyclically repeated and thus their business continues to grow day by day. Because it is not possible to provide big business capital independently. Although some businesses use their own personal capital they are certainly not large businesses but individual small businesses. Just because they take loans that doesn't mean they are not smart. Smartness comes from keeping pace with the times and making good and great decisions with the times.

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Quote from: Alphakilo on May 09, 2024, 03:35:52 AM

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Wealthy people love debt no doubt because they see investment opportunities all the time and are always ready to borrow to invest and utilize the opportunity that they have seen.it is not bad to borrow but what is very wrong is the purpose of which you borrowed the money for or if you used the money judiciously after borrowing it. talking about wealthy people their essence of borrowing is to add more funds to them through their returns on investment and the wealthy people are always very eager to borrow and invest for the future. but the poor people on the other hands only borrow to pay another debt or they borrow to feed their family and not to invest for the future.

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Quote from: Moreno233 on June 01, 2024, 08:33:00 AM

I agree with you that most of the rich re heavily indebt but there type of debt is different from unproductive debt. Think about it this way, the rich have borrowing power which is a prerequisite to access loans. They have assets that can serve as collaterals and their loans are tied to income generating investment of which the banks and insurance companies shares in the risk. This is different from the poor type of debt in which they borrow to consume. Even if the rich have the money to fund some of their investments, they usually do not like doing that instead they approach the banks for funding and also get the insurance companies involved as a way of sharing in the risk like I explained before. Is this not a smart move?

The average rich person does have a lot of debt but they use their money for their business or it can be said that their money becomes more productive to increase the scale of their business and investment, unlike poor people they use their money for consumer goods, from this method it is already different.

Using assets as collateral, such as why they buy vehicles and other assets with cash, then they use the certificate of ownership to borrow money from the bank to increase their capital in investing or expanding their business. On the other hand, they get the benefits of one increased capital and secondly they have assets to use and earn more income, but there is also a big risk that if the business or investment does not run smoothly then they will have a very difficult time paying the bills, and it can all fall apart.

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Quote from: Moreno233 on June 01, 2024, 08:33:00 AM

I agree with you that most of the rich re heavily indebt but there type of debt is different from unproductive debt. Think about it this way, the rich have borrowing power which is a prerequisite to access loans. They have assets that can serve as collaterals and their loans are tied to income generating investment of which the banks and insurance companies shares in the risk. This is different from the poor type of debt in which they borrow to consume. Even if the rich have the money to fund some of their investments, they usually do not like doing that instead they approach the banks for funding and also get the insurance companies involved as a way of sharing in the risk like I explained before. Is this not a smart move?

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Moreno233

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I agree with you that most of the rich re heavily indebt but there type of debt is different from unproductive debt. Think about it this way, the rich have borrowing power which is a prerequisite to access loans. They have assets that can serve as collaterals and their loans are tied to income generating investment of which the banks and insurance companies shares in the risk. This is different from the poor type of debt in which they borrow to consume. Even if the rich have the money to fund some of their investments, they usually do not like doing that instead they approach the banks for funding and also get the insurance companies involved as a way of sharing in the risk like I explained before. Is this not a smart move?

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Quote from: Stablexcoin on May 14, 2024, 08:35:48 AM

Quote from: Alphakilo on May 09, 2024, 03:35:52 AM

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Wealthy people do not fear debt instead they see debt as a means to get more money. Some poor people understand the concept of debt but are afraid to take one since they do not have collateral or a big business that can provide back such money they borrow if things go wrong in the investment or business. Another point is that the bank grant loans to wealthy people believing they are capable of paying the debt while they refuse to loan the poor because they have nothing. There are benefits that comes to an individual when he is rich that he didn't work for.

I think wealthy people are wise because they know how to use debt and how to double and triple your money . In comparison, poor people take loan for only useless thing . They have no business plans but they want only security in life. But businessmns take calculated risks and they make assets and then they get multiple returns on investments and they pay debt in 20 to 30 years of time. I think rich people are rich due to not only having money but they are rich due to mindset of rich people.Rich people invest in their businesses and they buy commodities and then they sell these commodities on high price. They take steps and they take risks . Everyone can't do this.

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Quote from: Alphakilo on May 09, 2024, 03:35:52 AM

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Wealthy people do not fear debt instead they see debt as a means to get more money. Some poor people understand the concept of debt but are afraid to take one since they do not have collateral or a big business that can provide back such money they borrow if things go wrong in the investment or business. Another point is that the bank grant loans to wealthy people believing they are capable of paying the debt while they refuse to loan the poor because they have nothing. There are benefits that comes to an individual when he is rich that he didn't work for.

NotATether

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Quote from: Dr.Bitcoin_Strange on May 09, 2024, 01:04:36 PM

Robert Kiyosaki was a US citizen. I know he talked about how he used debt to become rich because he used his debts to purchase assets and not liabilities. The reason why I had to mention the country where this man comes from is because if he had come from another country, maybe an underdeveloped country, he probably would not have archived what he did archive with his debts.

He was the son of Japanese immigrants, and rather poor ones at that (well at least compared to whoever that rich dad guy is). His poor dad pushed him to get a degree and stuff like that.

Quote from: angrybirdy on May 14, 2024, 05:10:20 AM

Hmm, so what's your thought about nepo babies? They are born with generational wealth and they don't need to work hard just to get things that they want in life, but if you are a normal perso who wants to get rich or wants to have a confortable life for your family then you need to work hard and to work smart just to gain a lot of money. for me, it's not enough that you just work unless you get the highest position and have the highest salary offer, but if you're a normal employee, it's hard or it'll take a long time before you can achieve the financial stability you're looking for. It's really better that we should have other sources of income such as sideline business or investment and of course we should also know how to handle money because if we don't know how, it's possible that all the money that passes through in our bank accounts will run out immediately if you don't use it properly.

We can't judge a person by their circumstances, only by their actions.

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Quote from: Z_MBFM on May 14, 2024, 01:42:30 AM

No one is born with a lot of wealth. to own a lot of wealth one has to work hard and also invest a lot of money. and the wealthy borrow to finance that investment. and banks can run their business only through their additional loans and when we put money in FD in banks, they lend to others and give us a percentage of the loan money with interest. Everything is done in a cycle. so taking loans of the rich is not only profitable for them, it is also profitable for various sides, we are also its circulators.

Hmm, so what's your thought about nepo babies? They are born with generational wealth and they don't need to work hard just to get things that they want in life, but if you are a normal perso who wants to get rich or wants to have a confortable life for your family then you need to work hard and to work smart just to gain a lot of money. for me, it's not enough that you just work unless you get the highest position and have the highest salary offer, but if you're a normal employee, it's hard or it'll take a long time before you can achieve the financial stability you're looking for. It's really better that we should have other sources of income such as sideline business or investment and of course we should also know how to handle money because if we don't know how, it's possible that all the money that passes through in our bank accounts will run out immediately if you don't use it properly.

Z_MBFM

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No one is born with a lot of wealth. to own a lot of wealth one has to work hard and also invest a lot of money. and the wealthy borrow to finance that investment. and banks can run their business only through their additional loans and when we put money in FD in banks, they lend to others and give us a percentage of the loan money with interest. Everything is done in a cycle. so taking loans of the rich is not only profitable for them, it is also profitable for various sides, we are also its circulators.

Topic: A lot wealthy people not smart they just use debt - page 5. (Read 1271 times)