One of the worst kind of debt is debt gotten from borrowing just for consumption. Better to borrow to buy or invest in stuff you are certain will be profitable or will pay back the debt before the end of the debt repayment period. So, another problem in borrowing is the uncertainty of turning the borrowed money into profit enough to repay the loan before the end of the repayment period. This is why it's important to master whatever business you choose to invest in with borrowed money. And this is one key information lender should be looking out for before lending money to people.
In regards to borrowing to buy smartphone.. it's really not a bad thing if the phone is good and used productively by a borrower who knows what he/she is doing.
Topic: Learn to use DEBT in a proper way to create asset (Read 1274 times)
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.
Generally this is the case if someone wants to do well through being in debt, because if they are in debt without having a business and only for lifestyle purposes, I think that is a very stupid person. Because one day when it's time to pay, he will definitely feel too much trouble so he will look for ways to avoid the debt collector and will cause chaos that he doesn't want.
I also agree more if someone takes debt to increase the capital of a business that is already running well, because he will definitely be able to pay the debt in his own way by utilizing the business he has relied on so far. So I quite agree that if there is nothing important that can really give better results, then just stay away from debt and just enjoy life as it is without excessive burdens.
At least at this point, you get the sense of the importance of borrowing in the right way and not for the wrong reason. Because I am also in debt, I made it possible to use what I owed in a business here in our area, and even though the capital I started was not that big, by the grace of God, the business still exists and continues to operate. which I have now had for over a year.
It is not advisable to only use it for non-business purposes, except for emergency reasons. We really need to be wise in using the money we borrow; don't make hasty decisions.
Exactly, having such loans just for liesure will adds up responsibilities and instead of enjoying your day job salary it will be an added obligation to pay for that debt, it's better to be wise and use the money you loan for betterment in life, a good way to finance your future, just a right venue to capitalize your business or your investment.
Let your loan money to work on his own to repay the amount, not an easy task though, but doable if you do your research the right way.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.
Generally this is the case if someone wants to do well through being in debt, because if they are in debt without having a business and only for lifestyle purposes, I think that is a very stupid person. Because one day when it's time to pay, he will definitely feel too much trouble so he will look for ways to avoid the debt collector and will cause chaos that he doesn't want.
I also agree more if someone takes debt to increase the capital of a business that is already running well, because he will definitely be able to pay the debt in his own way by utilizing the business he has relied on so far. So I quite agree that if there is nothing important that can really give better results, then just stay away from debt and just enjoy life as it is without excessive burdens.
At least at this point, you get the sense of the importance of borrowing in the right way and not for the wrong reason. Because I am also in debt, I made it possible to use what I owed in a business here in our area, and even though the capital I started was not that big, by the grace of God, the business still exists and continues to operate. which I have now had for over a year.
It is not advisable to only use it for non-business purposes, except for emergency reasons. We really need to be wise in using the money we borrow; don't make hasty decisions.
Let's discuss this matter, friends. If others don't already know, there are two types of debt. This is bad debt, and the second is good debt. And we know that this concept was explained by Robert Kiyosaki.
Why is this man so popular recently? I saw many posts and threads about him and his book Rich Dad Poor Dad. Keep in mind that the law about debt is not the same in every country. His aim is to promote book and sell as much as possible to gain lots of profit, I wouldn't invest in his book but to be honest, his advice about debt is good and will help many people to understand its benefits.Debt is not something good in a general perspective do let's not make it appears as if one is bad and the other is good
That's not true. There are really good and bad debts. Have a look at companies like Apple, their debt is $111.08 B. Are they crazy? No, for sure. Debt is an art that one has to master. There is a difference between debt that person takes to buy a brand new iPhone and a debt that company takes with different purposes.honestly at the end of the day growing and creating asset is as simple as investing in a productive asset and just taking loan for productive thing, not spending on some rather useless thing like latest phone and so on then we can thrive with productive asset that grow its own value.
Choosing not to have debt will indeed be very good, whether good debt or bad debt, as you said, if we already have debt, of course we are obliged to pay it and this will increase the responsibility we have because this becomes a burden on our minds which makes it difficult for us. in paying it off if you don't have enough income to pay it.
I think that the credit rating has been made by the financial institutions to make people think that it's totally okay to take debts, whether it is good or bad debt as you've said.But as I understand it, if I can't pay it in cash then I won't take things and won't be buying it. The difference today is about having a peace of mind and obligation that you'll be taking.
If you pay a lot of bills and you want to add up something to your life by taking debt, you must have planned it well. No one is going to stop you from taking those debts for your personal matters. And I am with you about having the increased responsibility and that's just my personal choice of not taking any as of the moment.
Let's discuss this matter, friends. If others don't already know, there are two types of debt. This is bad debt, and the second is good debt. And we know that this concept was explained by Robert Kiyosaki.
Why is this man so popular recently? I saw many posts and threads about him and his book Rich Dad Poor Dad. Keep in mind that the law about debt is not the same in every country. His aim is to promote book and sell as much as possible to gain lots of profit, I wouldn't invest in his book but to be honest, his advice about debt is good and will help many people to understand its benefits.I'm not really into finance and not fond of books as well, but I have heard enough about his book why it become a best selling finance guide. It does gave a lot of people an idea how to handle their finances and debts, but a lot more people have become successful which didn't accumulate a lot of debts that didn't know about the book or even Robert Kiyosaki. With or without the book, becoming successful financially depends on how passionate a person to his goals.
Debt is really addictive and tempting especially when the banks noticed you have a good account standing, they'll start offering you various types of loans and I consider it as a bad debt already.
Let's discuss this matter, friends. If others don't already know, there are two types of debt. This is bad debt, and the second is good debt. And we know that this concept was explained by Robert Kiyosaki.
Why is this man so popular recently? I saw many posts and threads about him and his book Rich Dad Poor Dad. Keep in mind that the law about debt is not the same in every country. His aim is to promote book and sell as much as possible to gain lots of profit, I wouldn't invest in his book but to be honest, his advice about debt is good and will help many people to understand its benefits.Debt is not something good in a general perspective do let's not make it appears as if one is bad and the other is good
That's not true. There are really good and bad debts. Have a look at companies like Apple, their debt is $111.08 B. Are they crazy? No, for sure. Debt is an art that one has to master. There is a difference between debt that person takes to buy a brand new iPhone and a debt that company takes with different purposes. Well, I am one of those people who is against debt because whether I use it for good debt or bad debt it will remain in my mind and it will add to my responsibility list to resolve. If we don't have a backup income to pay our debt then it's better to not debt to anyone, dont forget to add risk management skill so you can lower your risk of losing your borrowed money.
What I catch about Good Debt is that more like an investment where we look for investors to invest in our idea. Getting an investor and borrowing money are two different things because if you have an investor you can use the money without feeling chased by someone but if you borrow money its like being chased by someone and under pressure from that person, it will disturb your mind and make a horrible decision.
Choosing not to have debt will indeed be very good, whether good debt or bad debt, as you said, if we already have debt, of course we are obliged to pay it and this will increase the responsibility we have because this becomes a burden on our minds which makes it difficult for us. in paying it off if you don't have enough income to pay it.What I catch about Good Debt is that more like an investment where we look for investors to invest in our idea. Getting an investor and borrowing money are two different things because if you have an investor you can use the money without feeling chased by someone but if you borrow money its like being chased by someone and under pressure from that person, it will disturb your mind and make a horrible decision.
If we are looking for investors who will provide capital for the idea we have, of course we have to look at the agreement first, just like looking for a loan at a bank, because if someone lends money without having any agreement, of course it is not possible, so we need to look at the contents of the agreement. whether we can handle it or not, because if we are unable to follow the existing agreement, it would be better not to go into debt because it will be a burden for us.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.
Generally this is the case if someone wants to do well through being in debt, because if they are in debt without having a business and only for lifestyle purposes, I think that is a very stupid person. Because one day when it's time to pay, he will definitely feel too much trouble so he will look for ways to avoid the debt collector and will cause chaos that he doesn't want.
I also agree more if someone takes debt to increase the capital of a business that is already running well, because he will definitely be able to pay the debt in his own way by utilizing the business he has relied on so far. So I quite agree that if there is nothing important that can really give better results, then just stay away from debt and just enjoy life as it is without excessive burdens.
~snip~
* Bad debt: This is what makes a person suffer, because it is the things that give us liabilities or the ones that decrease in value, such as gadgets and cars. And the common problem with these loans is that you will pay them with high interest.
* Good debt: this is the type of debt that will make a person rich. Or else you will also earn money because, instead of using it for your needs, you will use it to build an asset. Which, if you handle it properly, can give you extra income.
~snip~
* Bad debt: This is what makes a person suffer, because it is the things that give us liabilities or the ones that decrease in value, such as gadgets and cars. And the common problem with these loans is that you will pay them with high interest.
* Good debt: this is the type of debt that will make a person rich. Or else you will also earn money because, instead of using it for your needs, you will use it to build an asset. Which, if you handle it properly, can give you extra income.
~snip~
Well, I am one of those people who is against debt because whether I use it for good debt or bad debt it will remain in my mind and it will add to my responsibility list to resolve. If we don't have a backup income to pay our debt then it's better to not debt to anyone, dont forget to add risk management skill so you can lower your risk of losing your borrowed money.
What I catch about Good Debt is that more like an investment where we look for investors to invest in our idea. Getting an investor and borrowing money are two different things because if you have an investor you can use the money without feeling chased by someone but if you borrow money its like being chased by someone and under pressure from that person, it will disturb your mind and make a horrible decision.
In my opinion, everyone should have a plan for their life, including the future, because the future is determined by us from now on, if for example we use debt and spend it properly, such as for business needs or other things, then it is likely that this will not be a problem. but if it is as I said above then it will be a problem and it is possible that it could hinder or even become a problem in the future.
Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
In the first place, there is nothing wrong with borrowing as long as we know how to pay the debt. Now, if we go into debt just because of the luxuries we want, for me, it is not practical or a good habit.
But if we take a loan for the business we are going to do, as long as we are sure that we will be able to grow it even with difficulties and if we are determined, we can take a loan if the money we can pay off the loan will come from the business we will build. I think it's fine, in my opinion.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.
Generally this is the case if someone wants to do well through being in debt, because if they are in debt without having a business and only for lifestyle purposes, I think that is a very stupid person. Because one day when it's time to pay, he will definitely feel too much trouble so he will look for ways to avoid the debt collector and will cause chaos that he doesn't want.
I also agree more if someone takes debt to increase the capital of a business that is already running well, because he will definitely be able to pay the debt in his own way by utilizing the business he has relied on so far. So I quite agree that if there is nothing important that can really give better results, then just stay away from debt and just enjoy life as it is without excessive burdens.
debt should be utilized wisely, loan is good for boosting the growth of a company, it could literally turn from small company to middle sized ones if taken properly.
the thing is that, so many people are taking out a loan for the most useless thing these days, even games and some branded luxury stuff that gonna lose value in no time.
only then it becomes problematic.
but if its for creating asset, i mean even if our attempt failed, we can just give back the asset we bought liquidate it in form of money and use it to pay up debt with a little bit of interests.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.
Generally this is the case if someone wants to do well through being in debt, because if they are in debt without having a business and only for lifestyle purposes, I think that is a very stupid person. Because one day when it's time to pay, he will definitely feel too much trouble so he will look for ways to avoid the debt collector and will cause chaos that he doesn't want.
I also agree more if someone takes debt to increase the capital of a business that is already running well, because he will definitely be able to pay the debt in his own way by utilizing the business he has relied on so far. So I quite agree that if there is nothing important that can really give better results, then just stay away from debt and just enjoy life as it is without excessive burdens.
Debt is something that a person should always avoid if possible. It is just an extra burden that can be a lifetime headache, so as long as borrowed money is intended to get an income source or boost current business it is okey. I have seen people trying to pay off his debt till his death and in some cases his children inherit this burden as well.
I don't understand what OP is trying to conclude here because I don't see debt as good or bad. If someone can pay off his debt in time even if he use that money to have some liabilities it shouldn't be any problem.
youre talking about bad unproductive debt where its just utilized for something consumptive not necessarily adding value to your asset worth as well as don't give you passive income of course it will be burden, i think what OP meant is that taking loan for buying something that gonna increase your asset worth and passive income instead, so that the debt will pay itself from the profit you get by renting a property for example if you try to borrow some money to buy property that actually has some worth since housing right now is needed more than ever and not everyone can afford to buy house many millennials are just renting house.I don't understand what OP is trying to conclude here because I don't see debt as good or bad. If someone can pay off his debt in time even if he use that money to have some liabilities it shouldn't be any problem.
so basically you are taking some loan even though it seem like you are in debt but actually you don't really use that debt in consumptive way, if worst get to worst, then you can simply sell that property that's still in mortgage (its possible) and then be done with it at worst you just only lose some small amount of money.
to make it happen in the future on which you would really be needing to be wise when it comes to spending on which we do know that this is really that needing to have that kind of decisions on which
not all people would really be able to do so but rather they would really be focusing into things on which they could really be able to make their own and would satisfy themselves without having
those kind of plans into their lives.
Bad debts and Good debts, it would really be just that impossible that you cant really be able to make yourself that realize on determining about the two.
If you would really be going into the path that you would really be making such lavish life and making debts then you would really be ending up on
wrecking your life with.
In my opinion, everyone should have a plan for their life, including the future, because the future is determined by us from now on, if for example we use debt and spend it properly, such as for business needs or other things, then it is likely that this will not be a problem. but if it is as I said above then it will be a problem and it is possible that it could hinder or even become a problem in the future.
Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
Debt isnt always bad. Like a hammer, its handy in the right hands but lethal in the wrong ones. Investing in a business, education, or something that appreciates over time? Using a hammer to build. What about transient desires? The thumb hits your financial future. Everyone has option, no doubt. Power brings responsibility. Its about striking a balance, seeing beyond the moment, into a future that we're constructing with each decision. Smart money management is also savvy life management.
I think this is what has been thought in a book called "Rich Dad Poor Dad " and I heard that Robery kiyosaki the author of the book in some podcast has 1 Billion in debt.
But to be honest, a fool like me Im just want to stay away from any debt and I would prefer to save in investment or anything else before buying something, or considered to get a loan with the lowest interest.
But Inflation keeps rising and anything becomes more expensive especially housing it is like impossible to buy without loan
Well, the reason why rich people use debt to buy assets is that they are not gonna pay for taxes. But this actually depends on where you are and what country you are in. We all know that banks aren't fan of poor people, why? It is because poor people don't have collaterals that will allow banks to lend you money to start buying or investing in assets you wanted. But to be honest, a fool like me Im just want to stay away from any debt and I would prefer to save in investment or anything else before buying something, or considered to get a loan with the lowest interest.
But Inflation keeps rising and anything becomes more expensive especially housing it is like impossible to buy without loan
It is good to stay away from debts no doubt about that just like staying away from stress but this is what rich people are doing to evade tax.
In my opinion, everyone should have a plan for their life, including the future, because the future is determined by us from now on, if for example we use debt and spend it properly, such as for business needs or other things, then it is likely that this will not be a problem. but if it is as I said above then it will be a problem and it is possible that it could hinder or even become a problem in the future.
Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt.Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
Agree, for someone who has no business, just use the money in the right way especially if you are having debt, Always think carefully where will you spend the money so that you'll be having no regrets in the long run. Having a loan and debt is not bad because it depends on your capability, how and where will you use the money that you want to borrow. Take note that we need to become responsible in our own funds to avoid huge problem in the future.
Yeah, I heard this from Robert himself and I will say that it's very controversial, what works for him might not work for everyone. And I will agree that this is just like gambler per se, wherein you borrow some money from your friends and go on put a business or buy a house as a investment and wait for a couple of years to make money.
It worked for Trump apparently.
He (robert) says you take loans from the bank, not from random people. I think this is because they are less likely to sue you than an agitated person who wants their money back. Whereas the bank has a balance sheet that will get part of it wiped out if you default and have other effects.
It is quite spartan if you ask me, and I wouldn't try this if I were you, because what usually happens with most people is their loans are only small since they have no collateral, and then they get sent to collections, repos, etc.
In my opinion, everyone should have a plan for their life, including the future, because the future is determined by us from now on, if for example we use debt and spend it properly, such as for business needs or other things, then it is likely that this will not be a problem. but if it is as I said above then it will be a problem and it is possible that it could hinder or even become a problem in the future.
Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
Not everyone has their own business to use their debt. The better advice is to avoid getting into debt if there's nothing important to spend the money on, especially if it won't bring you any financial returns. Try to avoid it as much as possible because having debt will not bring you any benefits if you use it just to enjoy the lifestyle you desire. However, if you already have a running business, you can use the debt to increase the funds of the business, and the money generated from the business can be used to pay for the debt. Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
Debt is something that a person should always avoid if possible. It is just an extra burden that can be a lifetime headache, so as long as borrowed money is intended to get an income source or boost current business it is okey. I have seen people trying to pay off his debt till his death and in some cases his children inherit this burden as well.
I don't understand what OP is trying to conclude here because I don't see debt as good or bad. If someone can pay off his debt in time even if he use that money to have some liabilities it shouldn't be any problem.
youre talking about bad unproductive debt where its just utilized for something consumptive not necessarily adding value to your asset worth as well as don't give you passive income of course it will be burden, i think what OP meant is that taking loan for buying something that gonna increase your asset worth and passive income instead, so that the debt will pay itself from the profit you get by renting a property for example if you try to borrow some money to buy property that actually has some worth since housing right now is needed more than ever and not everyone can afford to buy house many millennials are just renting house.I don't understand what OP is trying to conclude here because I don't see debt as good or bad. If someone can pay off his debt in time even if he use that money to have some liabilities it shouldn't be any problem.
so basically you are taking some loan even though it seem like you are in debt but actually you don't really use that debt in consumptive way, if worst get to worst, then you can simply sell that property that's still in mortgage (its possible) and then be done with it at worst you just only lose some small amount of money.
to make it happen in the future on which you would really be needing to be wise when it comes to spending on which we do know that this is really that needing to have that kind of decisions on which
not all people would really be able to do so but rather they would really be focusing into things on which they could really be able to make their own and would satisfy themselves without having
those kind of plans into their lives.
Bad debts and Good debts, it would really be just that impossible that you cant really be able to make yourself that realize on determining about the two.
If you would really be going into the path that you would really be making such lavish life and making debts then you would really be ending up on
wrecking your life with.
In my opinion, everyone should have a plan for their life, including the future, because the future is determined by us from now on, if for example we use debt and spend it properly, such as for business needs or other things, then it is likely that this will not be a problem. but if it is as I said above then it will be a problem and it is possible that it could hinder or even become a problem in the future.
Of course, in my opinion, everyone can determine which choices are good and bad, but on the other hand, there are people who dare to take very risky actions, by taking out loans even though they are not really needed, such as just to fulfill their desire to be stylish. I think that's a bad move or maybe stupid.
You think, the debt will tell you that this is a bad debt or good debt OP, the movement you invest that money you loan from the bank or cooperative societies to any particular investment, just know that you are embarking on big risk that will take a long time before you can escape. I will not advice anybody to loan money to start an investment but if relatives or friends loan you without interest on that loan, I don't think you have anything to worry about if you can invest the money on a reliable investment that will give you back the capital. I prefer to work hard to get my own capital to start that investment of my dream than loaning a money that will not give me rest of mind.
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