Learn to use DEBT in a proper way to create asset - page 4.

Dewi Aries

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Quote from: harapan on December 29, 2023, 05:23:55 AM

When you take debt, you should pay the debt from the loan taken and the only way you can do that is to make money out of that debt. A debt should only be taken to invest. This sounds easy to say but it's very hard. Especially for those who have an opportunity to take loans easily. It requires a lot of discipline to not borrow money when you need money for consumption.
I feel the only time we should borrow money for consumption is for health emergencies and life and death issues.
But as someone who works and make money, you should have planned for emergencies like that

When you get comfortable with taking debt for consumption, it becomes very easy to fall really deep into debt and that can make you not to make any money because all your money would go to paying off debt

someone who has a good mindset, when he has a business idea or business as well as an investment, and he doesn't have enough funds to do the thing he wants to do, then he takes out a loan in my opinion of course they have thought about everything when they take the loan action money, I think they are very confident that the business they are going to run can generate profits, therefore they dare to take out a loan to carry out something they want.

Sometimes there are people who don't have permanent jobs and they have financial problems because they are forced to take out loans to buy their needs, and this is normal, but I don't know what happens to those who don't have jobs but have debts. that has to be paid off, maybe they can just wait for a miracle to happen, but I think they have to look for a clear job so they can get a steady income, because it's not just for themselves, the debt they have to pay off is also their responsibility.

harapan

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When you take debt, you should pay the debt from the loan taken and the only way you can do that is to make money out of that debt. A debt should only be taken to invest. This sounds easy to say but it's very hard. Especially for those who have an opportunity to take loans easily. It requires a lot of discipline to not borrow money when you need money for consumption.
I feel the only time we should borrow money for consumption is for health emergencies and life and death issues.
But as someone who works and make money, you should have planned for emergencies like that

When you get comfortable with taking debt for consumption, it becomes very easy to fall really deep into debt and that can make you not to make any money because all your money would go to paying off debt

arwin100

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Quote from: barisbilgili on December 28, 2023, 12:13:59 AM

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Quote from: BitcoinTurk on December 21, 2023, 05:05:36 AM

As I have stated many times in my previous comments, borrowing money isn't a very logical thing to do especially for trading in cryptocurrency markets because trading with borrowed money in such a volatile market causes the person to be more stressed and lose money more easily. As someone who has previously made a leveraged transaction by borrowing money, I would like to help you understand what kind of psychological effect this actually has by stating that I wake up every night and check the status of my positions.

Using borrowed funds for trading can significantly amplify the emotional and psychological stress, especially in such a volatile market. The added pressure of managing leveraged positions can indeed lead to heightened anxiety and sleepless nights. It's important to prioritize mental well-being and financial stability when engaging in trading, and to carefully consider the risks associated with leveraging. Understanding the psychological impact of leveraging is crucial for making informed decisions and maintaining a healthy approach to trading.

It is indeed not an easy thing to be able to trade using borrowed funds because we don't know for sure whether we can make a profit in trading and if we experience losses in trading of course we have to find a way to pay off the debt when we can't pay it off of course we have was in trouble and had to take out another loan to be able to pay it off.

Of course, it is very important to be able to trade with a good mental condition and also have sufficient funds to trade, because if our mental condition is not good, of course we can make the right decisions in trading.

Imagine the pressure you can get for using that since you already lose with the interest ask by bank with that so maybe don't ever think about taking a loan from that institution just to fund your trading activity since we know how risky it is and might we will just lose the amount we ask from them. I guess that's a bad idea and not a proper way to use our debt since we might get in trouble to pay it especially if we have many loans from different outlets. We should think in smart way and then think about more valuable way if we plan to take loan then we make sure that it can really generate a passive income like expanding our businesses since this is how a loan became a good one if we just use it on right way.

Aside from trading in good mental condition since we really need to be in good shape with that, we also need to use our extra money so there's no huge mess happen to us and also we will not get broke if luck is not with us by the time we trade some coins in the market.

benalexis12

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Quote from: Fakhrulenclix on December 29, 2023, 12:27:02 AM

Quote from: barisbilgili on December 28, 2023, 12:13:59 AM

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Quote from: BitcoinTurk on December 21, 2023, 05:05:36 AM

As I have stated many times in my previous comments, borrowing money isn't a very logical thing to do especially for trading in cryptocurrency markets because trading with borrowed money in such a volatile market causes the person to be more stressed and lose money more easily. As someone who has previously made a leveraged transaction by borrowing money, I would like to help you understand what kind of psychological effect this actually has by stating that I wake up every night and check the status of my positions.

Using borrowed funds for trading can significantly amplify the emotional and psychological stress, especially in such a volatile market. The added pressure of managing leveraged positions can indeed lead to heightened anxiety and sleepless nights. It's important to prioritize mental well-being and financial stability when engaging in trading, and to carefully consider the risks associated with leveraging. Understanding the psychological impact of leveraging is crucial for making informed decisions and maintaining a healthy approach to trading.

It is indeed not an easy thing to be able to trade using borrowed funds because we don't know for sure whether we can make a profit in trading and if we experience losses in trading of course we have to find a way to pay off the debt when we can't pay it off of course we have was in trouble and had to take out another loan to be able to pay it off.

Of course, it is very important to be able to trade with a good mental condition and also have sufficient funds to trade, because if our mental condition is not good, of course we can make the right decisions in trading.

But it will be quite worth it with all the possibilities we will get.
I think we need to take a little risk in taking big profits because it will be proportional so we will never find profits without risk. Likewise, in everything we do, the greater our capital, the greater the profit percentage.

Therefore, we have to be smart in seeing opportunities and be able to use the money as much as possible, especially the money from debt that we will use, of course we will do a lot of calculations to avoid losses.

You're right there, and in everything we do that involves money, there's always a real risk, and that doesn't go away. Now, just like you said, there is actually a calculation that will happen if what we want is to build a business that will produce profit for us.

Now, if it comes from debt, I don't see any problem here if we only know the correct process of circulating the money owed in the proper management of the business that we will also do.

Fakhrulenclix

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Quote from: barisbilgili on December 28, 2023, 12:13:59 AM

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Quote from: BitcoinTurk on December 21, 2023, 05:05:36 AM

As I have stated many times in my previous comments, borrowing money isn't a very logical thing to do especially for trading in cryptocurrency markets because trading with borrowed money in such a volatile market causes the person to be more stressed and lose money more easily. As someone who has previously made a leveraged transaction by borrowing money, I would like to help you understand what kind of psychological effect this actually has by stating that I wake up every night and check the status of my positions.

Using borrowed funds for trading can significantly amplify the emotional and psychological stress, especially in such a volatile market. The added pressure of managing leveraged positions can indeed lead to heightened anxiety and sleepless nights. It's important to prioritize mental well-being and financial stability when engaging in trading, and to carefully consider the risks associated with leveraging. Understanding the psychological impact of leveraging is crucial for making informed decisions and maintaining a healthy approach to trading.

It is indeed not an easy thing to be able to trade using borrowed funds because we don't know for sure whether we can make a profit in trading and if we experience losses in trading of course we have to find a way to pay off the debt when we can't pay it off of course we have was in trouble and had to take out another loan to be able to pay it off.

Of course, it is very important to be able to trade with a good mental condition and also have sufficient funds to trade, because if our mental condition is not good, of course we can make the right decisions in trading.

But it will be quite worth it with all the possibilities we will get.
I think we need to take a little risk in taking big profits because it will be proportional so we will never find profits without risk. Likewise, in everything we do, the greater our capital, the greater the profit percentage.

Therefore, we have to be smart in seeing opportunities and be able to use the money as much as possible, especially the money from debt that we will use, of course we will do a lot of calculations to avoid losses.

uneng

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Quote from: slapper on December 26, 2023, 04:25:43 AM

Does it seem foolish to think that starting small is easy? The battlefield is horrible! The banking system's collateral demands divide the haves and have-nots Responsible financing is necessary, but where is the line between caution and exclusion? Banks, after all, should be enablers, not gatekeepers. Isn't good debt a 2 sides coin? We can't romanticize debt without realizing it can trap us financially. You mention 50% interest rates; that's daylight robbery! A vicious economic loop where you work twice as hard for what? Nearly drowning?

On to saving versus borrowing. A cash reserve is desirable, but how many people can afford it? World income inequality is as broad as the Grand Canyon. Many believe saving it as likely as a snowball in hell. The system hurts normal Joes who want to be entrepreneurs but face tough economic realities.

Banks actually don't care, as long as they are profiting side by side with whales and monopolies from our societies. The government neither, since they also profit from the current consolidated system dynamic. Governments, banks, whales and monopolies are partners on this business. The upper untouchable caste living on the abusive interest paid by the average joes. And I don't think there is a large scale solution for this issue, because even if someone with the best intentions reach a power position to make some changes, he will be corrupted by the system or taken out of circulation. The longer I live, most certain I become that collective causes are doomed to failure.

Quote from: slapper on December 26, 2023, 04:25:43 AM

So, the answer? Perhaps the loan system needs a complete rethink. Community-backed microloans or crowdfunding for local enterprises. We must remove these financial barriers and level the playing field. Isn't it time for banks to help, not hurt?

It's a great idea! Let everyone become lenders, while charging cheaper interest rates from borrowers. Everyone gains, although it directly impacts negatively the finances of that upper untouchable caste, and as we know, their interests come first... I would love to see this idea in practice, but unfortunatelly, It's not going to happen. I think it's funny when a random person wants to lend money he is considered a loan shark, which is a crime in many places, but the financial institution can legitimately charge 50%.

HajiBagi

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Quote from: Dewi Aries on December 15, 2023, 04:40:13 PM

borrowing capital to open a business or business makes sense, because there are people who have an idea for a business but don't have enough money to start it, they can take out a loan to run it, but as long as they run it well and it must produce results, because a business basically has to produce its own profits. and people who borrow money to open a business are only certain people anyway because people like this tend to be people who have strong determination because they dare to take out a loan to run their business idea.
it's not wrong if they borrow money to open a business, because if they are sure that what they are going to do can be profitable, it doesn't matter, I support this. because this also opens someone up to be more courageous in taking steps, on the other hand there are definitely risks but as I said only someone who has a strong determination to do this because rarely do people dare to do something like this which is very risky. the key is confidence. Cool

I concur that borrowing money is not always a bad thing as long as you know what to do with it and you make enough profit to feel like you can launch a business without going out and getting another loan is also okay. However, sometimes we need to realise that the loan was made possible by the interest that will be added to it; I don't mind the interest on the loan; what bothers me is how I will be able to succeed as an individual if I acquire a loan. These days, a lot of people don't take out loans to launch businesses; instead, they use them to buy cars, build houses, and generally enjoy life. As a result, a lot of people who take out loans don't get along.

Every decision you make in life requires careful consideration. Many successful businessmen that we see today began with a loan and have since amassed millions of dollars in their ventures are not wealthy because they used charm or magic to finance their businesses; rather, they worked hard to establish their brands and raise capital so they would never have to borrow money again. However, you will also notice that many young boys and girls borrowed money today, which they ultimately used to party.

DabsPoorVersion

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Quote from: so98nn on December 26, 2023, 11:59:19 AM

Looks good and I agree on the bad debt and good debt. In short if I am purchasing a commercial space by taking the loans then that is one sort of debt for me. However, it depends on its usage whether it is gonna be my good debt or bad debt. For example, if I go further and rent it to some bank or company then it is going to pay me rent. This could either pay up half of my loan, or may be full EMIs. Now this is not my liability anymore as it is getting paid off by the third party. I would end up saving my wagers plus I will be building a property for myself. In addition to all, as real investment this will keep growing with the time as appreciation cost. So yeah, I believe the theory that is stated in the OP is something we can live and concur.

What you have stated is a sample of a good debt. Investors of real estate are using this method to use their property to make money. Having a loan in the bank to use for real estate and looking for someone to rent the property. The money they can get from the rent will be the one to use to pay the loan.

Unlike those people who take a loan to buy new cars, motorcycles, or any stuff that they don't even need in life. They take a loan to buy something they can show off which we can consider as a liability.

It's all about how you use your debt. People need to understand that debt can be beneficial if used properly.

barisbilgili

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Quote from: BitcoinTurk on December 21, 2023, 05:05:36 AM

As I have stated many times in my previous comments, borrowing money isn't a very logical thing to do especially for trading in cryptocurrency markets because trading with borrowed money in such a volatile market causes the person to be more stressed and lose money more easily. As someone who has previously made a leveraged transaction by borrowing money, I would like to help you understand what kind of psychological effect this actually has by stating that I wake up every night and check the status of my positions.

Using borrowed funds for trading can significantly amplify the emotional and psychological stress, especially in such a volatile market. The added pressure of managing leveraged positions can indeed lead to heightened anxiety and sleepless nights. It's important to prioritize mental well-being and financial stability when engaging in trading, and to carefully consider the risks associated with leveraging. Understanding the psychological impact of leveraging is crucial for making informed decisions and maintaining a healthy approach to trading.

It is indeed not an easy thing to be able to trade using borrowed funds because we don't know for sure whether we can make a profit in trading and if we experience losses in trading of course we have to find a way to pay off the debt when we can't pay it off of course we have was in trouble and had to take out another loan to be able to pay it off.

Of course, it is very important to be able to trade with a good mental condition and also have sufficient funds to trade, because if our mental condition is not good, of course we can make the right decisions in trading.

kingvirtus09

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Quote from: bounceback on December 26, 2023, 05:34:42 AM

Quote from: gunhell16 on December 15, 2023, 12:51:10 PM

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.

* 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.

In the reality of life we face two kinds with debt between consumptive debt or productive debt, I will give little describe difference between two type of debt because many people get their self take much debt benefit for consumptive debt only but not use debt how to make ut more productive and increasing with their earning. Good debt or productive debt using for building business and earn profitable later and its area for businessmen keep get loan or borrowing money for building up their business.
Some people have bad life style and push their them get borrowing for consumptive debt use their lifestyle only and will face difficult later how to pay loan interested. Be smart when getting loan as bad or good debt if you want use loan for build up your business its not problem with productive debt.

That means what Op said about good and bad debt is correct. Generally speaking, debt is not bad. It only gets worse the more the borrower uses it. Which is that if it is used correctly, the result will be good in the end, that's for sure.

So what you said is also correct, and I don't contradict it either, and that's really the point of what we're talking about in this section that Op actually did.

so98nn

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Looks good and I agree on the bad debt and good debt. In short if I am purchasing a commercial space by taking the loans then that is one sort of debt for me. However, it depends on its usage whether it is gonna be my good debt or bad debt. For example, if I go further and rent it to some bank or company then it is going to pay me rent. This could either pay up half of my loan, or may be full EMIs. Now this is not my liability anymore as it is getting paid off by the third party. I would end up saving my wagers plus I will be building a property for myself. In addition to all, as real investment this will keep growing with the time as appreciation cost. So yeah, I believe the theory that is stated in the OP is something we can live and concur.

Parklane777

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Don't take anything for Granted.
If something been working well before it doesn't mean you can be sure for the same it will work further.
The mindset of taking the DEBT...to buy to rent it's a bet If all goes well but what If not ??

jaberwock

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Quote from: KupaCrypto on December 24, 2023, 06:15:59 AM

Quote from: Baofeng on December 15, 2023, 07:04:38 PM

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.

But still though, how can you pay it back when you are just starting your business? For sure once you borrowed that money, you have to pay it back the soonest as it will accrued big interest overtime. So it's a big risk in my opinion.

Collecting loans for business is more advisable than collecting loans for liabilities like car, phones etc.
Business is not certain, it can be profitable and at the same time it can lead to loss, but before you think about getting a loan for business you must have made some research and inquiries about the business and be very sure of it, so you will know every detail about it, and once you know every detail about a business, it will be very hard for that business to collapse, the reason why most businesses collapse is because of bad management of the business or inconsistencies around the business.

Collecting loans huh? I think that sounds a lot of loans hehe. And it seems gonna be a little difficult for us to pay them all. I read it somewhere that a car, phone, and the likes, can also be called as an asset or investment. I can agree with that if we only have one. If the previous that we have got destroyed and completely unusable, we will need to have another again. Those things can aid us from transporting, making a transaction, etc.

Yes. To have a plan is important before starting something. But we should keep in mind that there is still a high chance for us to fail despite of it. Apart from the reasons that you said, to not have a luck is also responsible for it.

bounceback

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Quote from: gunhell16 on December 15, 2023, 12:51:10 PM

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.

* 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.

In the reality of life we face two kinds with debt between consumptive debt or productive debt, I will give little describe difference between two type of debt because many people get their self take much debt benefit for consumptive debt only but not use debt how to make ut more productive and increasing with their earning. Good debt or productive debt using for building business and earn profitable later and its area for businessmen keep get loan or borrowing money for building up their business.
Some people have bad life style and push their them get borrowing for consumptive debt use their lifestyle only and will face difficult later how to pay loan interested. Be smart when getting loan as bad or good debt if you want use loan for build up your business its not problem with productive debt.

slapper

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Quote from: uneng on December 25, 2023, 11:39:53 PM

Quote from: panganib999 on December 23, 2023, 07:59:41 PM

But the thing is that you can't expect people, regular ones at that matter couldn't do the same thing that the rich ones could. Imagine, no one's not gonna be able to take such ludicrous loans (of course they have the business loans to take but there's caveats to that since they aren't as affluent as those in the upper echelons) which make it seem as though debts aren't meant for anything other than to support their lack of funding.

Yes, opportunities offered by lending institutions won't be the same for everyone, because not everyone can give the same collaterals and guarantees... It's a responsible measure from banks, otherwise they would be easily scammed by anyone. On the other hand, it doesn't mean average citizens can't venture themselves in business field. They just have to start slower and lower than the whales. The concept presented by OP and economists following this same theoretical line makes total sense, although there are many variables in practice which can prevent someone from being successful on their businesses. Even though it's a 'good debt', it's still risky and must be thought carefully before being executed.

The ideal is always to have money on the pocket to invest at once, without creating any debts on long run. Interest charged for loans is just too expensive in most places. Here in my country financing can easily reach to 50% interest. Thinking about business, it means you would have to work on the double just to pay the initial investment plus the interest charged by the financial institution. Maybe it's more interesting to save the money instead of borrowing it from a bank...

Does it seem foolish to think that starting small is easy? The battlefield is horrible! The banking system's collateral demands divide the haves and have-nots Responsible financing is necessary, but where is the line between caution and exclusion? Banks, after all, should be enablers, not gatekeepers. Isn't good debt a 2 sides coin? We can't romanticize debt without realizing it can trap us financially. You mention 50% interest rates; that's daylight robbery! A vicious economic loop where you work twice as hard for what? Nearly drowning?

On to saving versus borrowing. A cash reserve is desirable, but how many people can afford it? World income inequality is as broad as the Grand Canyon. Many believe saving it as likely as a snowball in hell. The system hurts normal Joes who want to be entrepreneurs but face tough economic realities. So, the answer? Perhaps the loan system needs a complete rethink. Community-backed microloans or crowdfunding for local enterprises. We must remove these financial barriers and level the playing field. Isn't it time for banks to help, not hurt?

uneng

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Quote from: panganib999 on December 23, 2023, 07:59:41 PM

But the thing is that you can't expect people, regular ones at that matter couldn't do the same thing that the rich ones could. Imagine, no one's not gonna be able to take such ludicrous loans (of course they have the business loans to take but there's caveats to that since they aren't as affluent as those in the upper echelons) which make it seem as though debts aren't meant for anything other than to support their lack of funding.

Yes, opportunities offered by lending institutions won't be the same for everyone, because not everyone can give the same collaterals and guarantees... It's a responsible measure from banks, otherwise they would be easily scammed by anyone. On the other hand, it doesn't mean average citizens can't venture themselves in business field. They just have to start slower and lower than the whales. The concept presented by OP and economists following this same theoretical line makes total sense, although there are many variables in practice which can prevent someone from being successful on their businesses. Even though it's a 'good debt', it's still risky and must be thought carefully before being executed.

The ideal is always to have money on the pocket to invest at once, without creating any debts on long run. Interest charged for loans is just too expensive in most places. Here in my country financing can easily reach to 50% interest. Thinking about business, it means you would have to work on the double just to pay the initial investment plus the interest charged by the financial institution. Maybe it's more interesting to save the money instead of borrowing it from a bank...

passwordnow

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Quote from: BigBos on December 24, 2023, 08:15:21 PM

I think in this case we also have to think about what our purpose of borrowing is for and what guarantees we will get or produce from the loans made because in the end it all come back to the mindset that we have discussed considering that borrowing also requires careful calculation and plan that we must build so as not to make the same mistakes as others do.

It's hard to distribute these loans that we make and that's why before taking one, you have to rethink where you're going to allocate it because if you don't do so then you're making a huge mistake that you might regret forever and that loan will put you into a deeper hole that you cannot recover anymore. That's wise in terms of taking loans, you need to be wiser around if you're decided to take one.

Quote from: BigBos on December 24, 2023, 08:15:21 PM

Hence the need for us to think further when getting into debt.
When we are in a strata that can be said to be below then do not try something with a big bet. Referring to the example I gave for Saylor, he knew that when he borrowed, he would be able to pay it because his assets were abundant and he was not too worried about not being able to pay the debt because he was still able to do so, but for those of us who are in the lower economy and do not have a mature plan for borrowing, it will be very difficult to realize because in the end debt is not as simple as imagined.

That's right. These huge borrows that people make are sustainable and they're able to make money from their other sources. With or without collateral, they will be able to pay the debt no problem if ever the expansion of any venture they do with that money fails to comply. With such back up plans, people like Saylor are smart in money management and they won't just let themselves deal and get into bigger trouble through having large debt.

Quote from: BigBos on December 24, 2023, 08:15:21 PM

There is nothing wrong with the concept because they want to survive for the sake of living but it is not in accordance with the concept of good debt because precisely by doing this method in my opinion this is the last way that must be chosen if indeed we do not really have another way and if there are still other options then it is better to avoid debt because after all even if their economy is bad at least their burden is not too heavy because they do not have debt.

Yes, they need to classify it as a good debt and with that. It should be making them more money instead of getting more in debt and with interest rates. People need to use debt for their betterment and not just to buy things that they want and they'll pay it later. That's not the way to use debts when you want to grow your way of living and just do what the rich do, they have no secrets anymore.

lienfaye

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Quote from: gunhell16 on December 15, 2023, 12:51:10 PM

what I means you must know how to handle money. Must have skills, such as COMMUNICATION, LEADERSHIP, NEGOTIATION, SELLING and INTRAPERSONAL. Because if you borrow money and use it in your business, it doesn't mean that everything will be okay immediately and your business will grow automatically. It's just that not every time the weather agrees with what you want to happen in your life.

This is true. If you borrow money and use it to build a business, the outcome is still uncertain and one wrong move can trigger to failure.

Therefore, it's crucial that you know how to handle everything (in general) to maximize the possibility of having a successful business. The reason why it's not also easy to use a borrowed money to gain assets because there's always risk. But of course, this idea is much better rather than borrowing then spend it for wants.

BigBos

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Quote from: passwordnow on December 24, 2023, 07:42:59 PM

Quote from: BigBos on December 23, 2023, 05:28:29 PM

There are many misconceptions about debt, but that's because our thinking and mindset isn't quite right.

And with what we believe seems to be right because that's how we deal with things and think of it. But that belief is wrong because it never had happened to us but the time that we do the same as the other people who committed mistakes in using debt, we'll be able to prove that and our perspective will change.

I think in this case we also have to think about what our purpose of borrowing is for and what guarantees we will get or produce from the loans made because in the end it all come back to the mindset that we have discussed considering that borrowing also requires careful calculation and plan that we must build so as not to make the same mistakes as others do.

Quote from: BigBos on December 23, 2023, 05:28:29 PM

Indeed, in this case I quite agree when saying debt can eventually turn into profits as Saylor did with the principle of bitcoin maximalism which is done by borrowing money from the bank and converting it to bitcoin but on the other hand things like that are not a guarantee for us who do not have a large guarantee.

It is not guaranteed if you don't have any other source of income at all. How can you take a loan and will use it for something like buying bitcoin but then the interest keeps on running and you have to pay for it. You can't just simple file for bankruptcy with that and that's why the lenders who have been doing this have their back ups and actual money prepared to pay for the amount that they've taken as a loan. They wouldn't borrow money just because they don't have money but they can pay it so that they will not use their own money for such investments and businesses.

Hence the need for us to think further when getting into debt.
When we are in a strata that can be said to be below then do not try something with a big bet. Referring to the example I gave for Saylor, he knew that when he borrowed, he would be able to pay it because his assets were abundant and he was not too worried about not being able to pay the debt because he was still able to do so, but for those of us who are in the lower economy and do not have a mature plan for borrowing, it will be very difficult to realize because in the end debt is not as simple as imagined.

Quote from: BigBos on December 23, 2023, 05:28:29 PM

In the end, we must know that the majority of people in low economic strata only use debt to support themselves so that they can continue to live, which of course makes it difficult for them, therefore sometimes for those in poverty strata it is not advisable to borrow because it will greatly endanger themselves.

This is true, people who don't have that much borrow to sustain something they need or an important matter to get addressed. But using it for business, you are not going to see a lot of it.

I don't really understand what you mean by this can you clarify?
Because what I meant to say is that for those who have a difficult economic condition, the loan is not for doing business but to support their daily life.
There is nothing wrong with the concept because they want to survive for the sake of living but it is not in accordance with the concept of good debt because precisely by doing this method in my opinion this is the last way that must be chosen if indeed we do not really have another way and if there are still other options then it is better to avoid debt because after all even if their economy is bad at least their burden is not too heavy because they do not have debt.

Topic: Learn to use DEBT in a proper way to create asset - page 4. (Read 1274 times)