Learn to use DEBT in a proper way to create asset

[BigBos]

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

[Hamphser]

Debt can kill you and debt can also make you a rich entrepreneur. Good debt management needs to be done to prevent harm when the payment deadline is very close. Those who use debt well will buy assets that provide cash income into their personal pockets every month. Good debt usually builds a business, but it is necessary to review the money that the business to be built must be in accordance with the environment and the needs of local residents. Finding a strategic location must be prioritized so that the business runs smoothly.

Agree. Debt can indeed destroy us, but it does not rule out the possibility that with debt we can be successful, it all depends on each of us. And debt should not be something we have to avoid, as long as we are willing to learn and are smart about managing finances, then debt can be a lever for us to be smarter in terms of financing.

Debt is good if we can be active and smart in multiplying our money to get more money from our debt, and on average rich people definitely have debt because most of them are good at multiplying money. However, if you can't manage it well, it would be wise to have cash or not be in debt.

Debt could definitely destroy us if it wont really be that handled well. You wont really be just spending it into something which is really that useless because if you do then you would really be ended up on
disaster. This is why it would be always hat best that you should really be that mindful on the decisions that you are making so that you would really be having that less risks on making some damage into your finances.Always mind off about on how you would really be able to add up those income and this is via investment or having business. Taking a loan for some liabilities is really just that a waste of money
but if you are really that prepared on repaying that loan and not really hurting your finances then it would really be just that fine.

Your money then your rules but be sensible on where it should be applied and it should really be on something worth so that you would really be that
able to avoid into those certain situations which we dont really like to happen into us.

[bocyaj]

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

Many people think the debt in the wrong way,their thoughts was if they get credits it will pull them backward.But the hidden thing of the debt was the person will get the debt based on their income.So if the person had huge debt means,his rotation of the money also high.In another way the people who have more debt will increase their income sources in the multiple way.So at the final,he will move to the next level by the debts.Only if the person keep on getting debt without more income sources will become more poor.

Learning the skills you mentioned is possible for anyone, but some people seem to have a natural talent for them, as if they were born with those abilities. In my country, there are rich people who didn't go to school much but are good at business, suggesting they have an inborn knack for it. I don't really believe in luck when it comes to business. I think those who succeed are genuinely good at what they do and know how to make smart decisions, rather than just relying on luck.

The money handling people will have more credit cards,because they will rotate the money and inverse in the trading.The risk in the debt also help us to understand the real value of the money in the real world.Also help us to save more money in the future.

[erep]

Always mind off about on how you would really be able to add up those income and this is via investment or having business. Taking a loan for some liabilities is really just that a waste of money
but if you are really that prepared on repaying that loan and not really hurting your finances then it would really be just that fine.

Your money then your rules but be sensible on where it should be applied and it should really be on something worth so that you would really be that
able to avoid into those certain situations which we dont really like to happen into us.

Using debt for investment needs is certainly not recommended because you have to pay the debt every month so your income must increase from the previous monthly income, unless you use debt to build a business or increase your business capacity to expand your network more widely. I really avoid borrowing large amounts except for urgent needs for medical expenses and other emergency costs, but for business needs we will prioritize using funds that suit our finances, we don't need to force ourselves to build a big business in an instant but we have to increase our experience in building small business, so we don't need to use loans to build a small business and a business that is not tied to loans will have more potential for success in the future.

[deepblue01]

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

Because low income people should not have debt because they usually treat dept as a way to increase more spending without thinking how to create more income.

i saw high networth people also use debt as a way to decrease tax, it's very profitable reminding how much interest they have to pay in order to decrease income tax

[panganib999]

Rich dad poor dad mechanics basically. Poor people create liabilities when they take debts, while rich people create assets and opportunities when they take debts. One good example of this is how most companies especially in the housing and real estate sector take up debts and loans from large banking institutions to fund their projects instead of using their pocket money. Why? Cause when the project's already fully erected and they can launch it successfully, the project will essentially pay for itself by paying off its interests with the profits.

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.

[poodle63]

Rich dad poor dad mechanics basically. Poor people create liabilities when they take debts, while rich people create assets and opportunities when they take debts. One good example of this is how most companies especially in the housing and real estate sector take up debts and loans from large banking institutions to fund their projects instead of using their pocket money. Why? Cause when the project's already fully erected and they can launch it successfully, the project will essentially pay for itself by paying off its interests with the profits.

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.

thats true, one most important thing that many people forget, poor people only can borrow small amount of money, nobody in the financial sector are trusting poor people with big money therefore the difficulty of escaping poverty is kinda obvious, yes some people say to get a loan for a housing then we can rent it, but getting approved in the first place without high income salary is kind of day dreaming.
its always the thing that people with capital are definitely having the advantage, therefore if its people with small capital, continue working, save up those money, grow the capital before thinking about using debt to create an asset.
this way of creating an asset through debt is only for people that already assets before hand, and sometime its also not always a foolproof thing, sometime it doesn't work, imagine the interest rate is spiking so high, there's no other way but to use our personal money to pay up the loan.

[CK485]

If you do not have a quick return and assets that cover the costs of the debt, it is better not to borrow, otherwise you will put yourself in options that may be bad, and thus this is like shooting at your projects and dreams.

You provide a thoughtful view. It's true that if there are no quick returns or assets that can cover the cost of debt I think it will have a huge impact on the health of the money.

Regardless of things, the philosophy of getting money from money through lending leads to a decrease in the value of money. Therefore, banks and governments must encourage investors to make money from projects such as agriculture, industry, or services, more than borrowing.

In theory, money often decreases in value every year. And if I lend money this year, say 100 dollars, 1 year later the borrower returns the 100 dollars (without interest) there will definitely be a decrease in the value of the money, I think this is because the selling price 1 year ago will increase several percent in the following year. Etc. And it is true that empowering investors to make money through productive projects such as agriculture, industry or services can be sustainable in supporting economic growth.

[junder]

Always mind off about on how you would really be able to add up those income and this is via investment or having business. Taking a loan for some liabilities is really just that a waste of money
but if you are really that prepared on repaying that loan and not really hurting your finances then it would really be just that fine.

Your money then your rules but be sensible on where it should be applied and it should really be on something worth so that you would really be that
able to avoid into those certain situations which we dont really like to happen into us.

Using debt for investment needs is certainly not recommended because you have to pay the debt every month so your income must increase from the previous monthly income, unless you use debt to build a business or increase your business capacity to expand your network more widely. I really avoid borrowing large amounts except for urgent needs for medical expenses and other emergency costs, but for business needs we will prioritize using funds that suit our finances, we don't need to force ourselves to build a big business in an instant but we have to increase our experience in building small business, so we don't need to use loans to build a small business and a business that is not tied to loans will have more potential for success in the future.

That's right, borrowing large amounts of money is only done when the situation is urgent, if you want to start a business it's best not to immediately aim for big things, it's better to do small things first, because starting is what everyone has to do, if they really want to be successful of course they have to start from the bottom first, in my opinion they can borrow money to expand their business network, if you start with small capital, in my opinion this can be done without having to take out a loan, especially with a large amount, that is not recommended.  Don't force yourself to open a large-scale business straight away because it doesn't guarantee that it will produce clear profits.

I agree with you, to start a small business you don't  need a loan to start it, it doesn't matter if the business starts small as long as it can be run smoothly, maybe it will definitely grow, also as you said, a business that doesn't involve debt will have more potential. for success.

[KupaCrypto]

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.

[Yatsan]

Corporations often do this to ensure that their other assets will continue revolving. The idea is letting your business pay your debt/loan for you without actually releasing capital from your wallet. The only risk is assuring that the outlet you created would be profitable enough to generate money and pay it off. I agree with what's cited; there is a good side of taking a loan and also a bad side. It just depends on the purpose and idea behind the amount you will borrow. If it will be used to things which won't generate money and will just depreciate over years, then that's basically unnecessary.

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.

Some are doing franchise to lessen the risk of losing money. Franchise businesses will at least give you better chances for a stable gross especially if you are under a good trade name. It is less complicated than with starting your own business from a scratch especially with introducing it to the public unlike with franchising wherein there is already a public exposure to the brand you will be engaging yourself with.

[Dewi Aries]

to start a business must have capital, because everything can run with money, a person who has a good idea but does not have enough money to run a business or business in my opinion it does not matter if they borrow money to be used as initial business capital, as long as they are sure that the business or business they run can generate profits in the future, because there are debts that must be paid and of course must also be repaid  In my opinion, this is not a problem,  if they can consider it well, because if they already have a good business idea and business,  it's a shame if they don't run it, so there's nothing wrong with trying, but don't be rash, trying I mean not by basing it,  of course it must be with accuracy because what is wanted is success not bankruptcy.

For example, someone who has a business and wants to open a branch in another place but doesn't have enough money in my opinion there is nothing wrong with them taking out a loan if they are sure that to expand their business network it will be more developed and profitable, of course they need more capital, and taking out a loan for capital to open their business is one way to overcome it. to make it bigger, according to That's not a problem for me, again in my opinion, whatever other people think, maybe their thoughts will be different because obviously everyone has different thoughts in doing something.

[tread93]

Robert K always talked about this, being able to utilize debt and the depreciation for tax benefits, I love how much of an advocate he is to BTC, also a huge gold and silver and of course real estate tycoon. I definitely need to brush up on utilizing these tax incentives better

[passwordnow]

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.

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.

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.

[poodle63]

Robert K always talked about this, being able to utilize debt and the depreciation for tax benefits, I love how much of an advocate he is to BTC, also a huge gold and silver and of course real estate tycoon. I definitely need to brush up on utilizing these tax incentives better

its literally his branding to create asset from debt,all his books always talks about this thing and I couldn guess he made quite the fortune from the book as well therefore no question about it.
but its just might not suited for everyone, the fact that we are creating asset using debt, might put a lot pressure towards our mental health when thing goes wrong like pandemic occurring for example.
not to mention the fact that there are not many ways to get that much of a meaningful money from loan if we don't have assets in the first place, definitely not suited for people starting out.

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

thats true, the thing is, most poor people just getting debt to support the lack of money to fulfil basic needs let alone creating asset, if they can't eat today, then they are done for, its quite different for middle class to upper class yes, because the people in the lower class don't really have something to fall on when they are failing, once they are entagled in debt, well its the end for them homeless is their next stage of poverty.

[BigBos]

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. 

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.

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.

[lienfaye]

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.

[passwordnow]

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.

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.

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.

[uneng]

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...

[slapper]

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?