- Joined
- Mar 17, 2007
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People need to know their own limitations and use discipline.
Debt is NOT a bad thing in itself. Debt is simply a side of your personal balance sheet. The problem is when people use debt to excessively buy shitty assets, often with liability characteristics (like cars) instead of WEALTH BUILDING ASSETS like equities, real estate, fixed income etc.
Your financial goal in life should be to maximize wealth, not minimize debt. So if you can get money at a good rate, do it, and use it to INVEST instead of CONSUME. Do this. and reinvest the money you earn from your assets if you can.
Same basic premise with your credit cards. Get one that offers rewards and use it for necessities, not bullshit excess consumption i.e. expensive shoes, luxury cars, swanky vacations you can't afford. The right card can save you 2 to 5% of your spending. Always pay it off in the grace period.... never pay those 20%ish rates for fucks sake.
People are so fucking stupid and hellbent on consumption though, you see some people with fancy shit, jewellery and cars, and you can't see their liabilities. That's how the corporate world fucks people, makes them feel insecure and a loser if they aren't showing off their wealth. I've learned in life, a LOT of time the people with the highest net worths are the one's you'd never guess. They dress rather normally, don't want other's to even know they have money, but while they have borrowed some money or have mortgage balances, they still have millions of dollars in investments working for them around the clock.
Debt is NOT a bad thing in itself. Debt is simply a side of your personal balance sheet. The problem is when people use debt to excessively buy shitty assets, often with liability characteristics (like cars) instead of WEALTH BUILDING ASSETS like equities, real estate, fixed income etc.
Your financial goal in life should be to maximize wealth, not minimize debt. So if you can get money at a good rate, do it, and use it to INVEST instead of CONSUME. Do this. and reinvest the money you earn from your assets if you can.
Same basic premise with your credit cards. Get one that offers rewards and use it for necessities, not bullshit excess consumption i.e. expensive shoes, luxury cars, swanky vacations you can't afford. The right card can save you 2 to 5% of your spending. Always pay it off in the grace period.... never pay those 20%ish rates for fucks sake.
People are so fucking stupid and hellbent on consumption though, you see some people with fancy shit, jewellery and cars, and you can't see their liabilities. That's how the corporate world fucks people, makes them feel insecure and a loser if they aren't showing off their wealth. I've learned in life, a LOT of time the people with the highest net worths are the one's you'd never guess. They dress rather normally, don't want other's to even know they have money, but while they have borrowed some money or have mortgage balances, they still have millions of dollars in investments working for them around the clock.
