Learn to use DEBT in a proper way to create asset

[retreat]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

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[nara1892]

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.

For real, people borrow money to start trading? What type of risk is that? No matter how professional and skillful you think you are in trading, I don't think it's a wise decision to borrow money and start your trading career. Although, it's a two edge sword and if you are lucky to succeed, you'll repay the debt and have your own money to start the journey but if otherwise, you suffer from desperation the embarrassment that associate with debt. However, the chances of failure outweigh that of success and that's why it is not an ideal.

True, such an approach is really not recommended in the world of trading, one of the reasons that makes sense is because in trading you not only need skills and knowledge but also this activity involves mental and psychological calm and if you trade using money from borrowing then obviously at least there will definitely be a feeling of fear in yourself when using that money to trade which ultimately makes it difficult for you to be able to focus and have difficulty in terms of analysis because of the pressure and feelings like "I have to profit to pay off debt" of course it is something that you will definitely think about when your trading session has started, And usually when you experience distractions that make it difficult for your brain and mind to focus on making a decision in trading then obviously usually the decisions you make will also miss, meaning you make the wrong decision because of the psychological pressure of the borrowed money.

So in the world of trading do not try to borrow money as your trading capital because peace of mind is needed there, no matter how skillful you are, I have felt that the psychological distraction of borrowed money really makes me feel difficult to analyze and ultimately act carelessly.

[junder]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

that makes sense, this proves that people's perspectives are different, where people go into debt to do things that will generate profits in the long term, and can generate profits for them to obtain as well as to pay off debts that they take out loans to generate In my opinion, profits don't matter, because to produce something profitable of course there must be sacrifices, and people like this tend to have a good mindset, that's what I think.

Meanwhile, for people who take out loans to do things like you said, such as buying a vehicle or something else, maybe they don't think well, also people like this maybe they take out loans to buy things they shouldn't because they have prestige that cannot be lost and makes them want to be stylish but force the situation, and in the end this leads them to their own difficulties.

[stomachgrowls]

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.

For real, people borrow money to start trading? What type of risk is that? No matter how professional and skillful you think you are in trading, I don't think it's a wise decision to borrow money and start your trading career. Although, it's a two edge sword and if you are lucky to succeed, you'll repay the debt and have your own money to start the journey but if otherwise, you suffer from desperation the embarrassment that associate with debt. However, the chances of failure outweigh that of success and that's why it is not an ideal.

True, such an approach is really not recommended in the world of trading, one of the reasons that makes sense is because in trading you not only need skills and knowledge but also this activity involves mental and psychological calm and if you trade using money from borrowing then obviously at least there will definitely be a feeling of fear in yourself when using that money to trade which ultimately makes it difficult for you to be able to focus and have difficulty in terms of analysis because of the pressure and feelings like "I have to profit to pay off debt" of course it is something that you will definitely think about when your trading session has started, And usually when you experience distractions that make it difficult for your brain and mind to focus on making a decision in trading then obviously usually the decisions you make will also miss, meaning you make the wrong decision because of the psychological pressure of the borrowed money.

So in the world of trading do not try to borrow money as your trading capital because peace of mind is needed there, no matter how skillful you are, I have felt that the psychological distraction of borrowed money really makes me feel difficult to analyze and ultimately act carelessly.

Borrowing money for investment/business then it would be a YES!
Borrowing money for trading, gambling, buying wants then its a big NO!

You should really be that sensible on the actions that you are making and dont make yourself that too impulsive when it comes to things on which it would really be just that right that you should
really be that focusing into something that will really be beneficial for you on long term and not really just that focusing or minding into short term ones.
If you do know on how to maximize DEBT or those loans then it wont really be that an issue. There are really just those people who cant think up well on what they should gonna do.

Promise, i had that bad experience on making use of DEBT in a wrong way that even upto now im still paying up some mortgages on something
that arent really generating some profits or income on which it does give out that kind of a little bit regrets.

[KupaCrypto]

The mistake most persons make is borrowing money for consumption or to buy a car which is considered a liability, because it will never appreciate it will always depreciate, but using borrowed money to invest in a business or to acquire an asset is good, because on like the liabilities that depreciates , assets will always be on the appreciating side, it might be slow but definitely it will appreciate, using money to acquire a land then maybe after 5years you feel like selling it , definitely you won't sell it for that money you bought the land, the will sell it more than that price, but for a car you won't be able to sell it more than the money you bought it, you will sell it lower than the money you bought it.

[Parklane777]

The mistake most persons make is borrowing money for consumption or to buy a car which is considered a liability, because it will never appreciate it will always depreciate, but using borrowed money to invest in a business or to acquire an asset is good, because on like the liabilities that depreciates , assets will always be on the appreciating side, it might be slow but definitely it will appreciate, using money to acquire a land then maybe after 5years you feel like selling it , definitely you won't sell it for that money you bought the land, the will sell it more than that price, but for a car you won't be able to sell it more than the money you bought it, you will sell it lower than the money you bought it.

You people think that Market always keep going up yes it goes but at some point when you atleast expecting the Market Will crash.
You need to realise that real estate prices are high becouse of DEBT it's not based on real reasons like...supply and demand ...but mostly pure speculation ...and If your House is 500k 600k or 1mil or just 100k it doesnt matter because what's missing is the real valuation measure.
So it all those prices been set for real estate when DEBT was high and still is high so the real estate are valued most confused ways nothing real behind the property valuations and in this situation the deleveraging will be happening so 30%-50% price crash can't be surprise.

[Fredomago]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

that makes sense, this proves that people's perspectives are different, where people go into debt to do things that will generate profits in the long term, and can generate profits for them to obtain as well as to pay off debts that they take out loans to generate In my opinion, profits don't matter, because to produce something profitable of course there must be sacrifices, and people like this tend to have a good mindset, that's what I think.

Meanwhile, for people who take out loans to do things like you said, such as buying a vehicle or something else, maybe they don't think well, also people like this maybe they take out loans to buy things they shouldn't because they have prestige that cannot be lost and makes them want to be stylish but force the situation, and in the end this leads them to their own difficulties.

That other side of taking loan is most of the time the reason why there's hardship in life, most of those young adults who barowed money just to be in style are mostly the one who can't acheived financial stability, unlike with those wise and straight forward people who thinks of the present as an investment to have a better financial capability when they retire or in a much earlier stage of life.

They are taking those loans as part of their plans, either to have a good business or to invest the money on something that they understand well that will generate better amount of benefits.

[Youngkhngdiddy]

The mistake most persons make is borrowing money for consumption or to buy a car which is considered a liability, because it will never appreciate it will always depreciate, but using borrowed money to invest in a business or to acquire an asset is good, because on like the liabilities that depreciates , assets will always be on the appreciating side, it might be slow but definitely it will appreciate, using money to acquire a land then maybe after 5years you feel like selling it , definitely you won't sell it for that money you bought the land, the will sell it more than that price, but for a car you won't be able to sell it more than the money you bought it, you will sell it lower than the money you bought it.

   It should also be known that not all assets will give you the  profit you require. Just like every other business and investment, you can also get losses from this asset, for instance gold, the price volatility of gold may fluctuate significantly over short period of time. This can make it difficult to predict its value and even make it a risky investment.  In the case of land anything can happen, government might seize or come take advantage of your property if you didn’t do a proper survey or have Certification of ownership. All this are possible scenario that can happen.
   In as much detail is good to invest borrowed money on assets rather than use to get liabilities, this will help you get back money to help clear your debt and also help boost your financial position to some extent. Buying phones and cars are not the deal. Rather look for something  that can help generate income times 2 of what you owe. Taking a loan for business is never a bad idea, after all every successful entrepreneur has been in the mercy of loan to push their business up. So never be ashamed to get loan to fund your business if you have to, see it as a way forward to get your business going again.

[Sanugarid]

Yes, I agree. The borrowed money is often used for bad things like gambling, borrowing money to gamble, buying gadgets, used for bad habits etc. This is common among those who are in debt, so they are even more in debt.
Being debt is not always bad, it's up to you how you use the money properly to grow the money you borrowed.

[batang_bitcoin]

Yes, I agree. The borrowed money is often used for bad things like gambling, borrowing money to gamble, buying gadgets, used for bad habits etc. This is common among those who are in debt, so they are even more in debt.
Being debt is not always bad, it's up to you how you use the money properly to grow the money you borrowed.

Those people that does it lack of financial knowledge or education and that's why they're spending like that and don't understand that they're pulling themselves to the pit of debts. That's not how debts should be used because remember that if you can't it for cash like in gadgets, you can't afford it yet and much better to save money to pay it in full. And for the people that still takes loans to gamble, change your lives and don't be like that anymore. You'll have to change your mindset and don't gamble like that if you like to have a better life or be simple that don't take unusual loans.

[poodle63]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

this is called keeping cashflow healthy and indeed a lot of rich people out there are using such means, not to mention credit card that give a lot of flexibility to delay payment as well as giving very low interest sometime almost none thats why rich people could take advantage of it for capital in their business so they easily have access to capital and in great amount at that if they have exclusive credit card.
its simply easy for them to buy some properties for the sake of growing their wealth its really different for those middle class or lower, having that access to capital is just a dream.
thats why its easy for the rich to build an asset, quite different if it was people that are not that rich building asset is a nightmare in the process.

[junder]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

that makes sense, this proves that people's perspectives are different, where people go into debt to do things that will generate profits in the long term, and can generate profits for them to obtain as well as to pay off debts that they take out loans to generate In my opinion, profits don't matter, because to produce something profitable of course there must be sacrifices, and people like this tend to have a good mindset, that's what I think.

Meanwhile, for people who take out loans to do things like you said, such as buying a vehicle or something else, maybe they don't think well, also people like this maybe they take out loans to buy things they shouldn't because they have prestige that cannot be lost and makes them want to be stylish but force the situation, and in the end this leads them to their own difficulties.

That other side of taking loan is most of the time the reason why there's hardship in life, most of those young adults who barowed money just to be in style are mostly the one who can't acheived financial stability, unlike with those wise and straight forward people who thinks of the present as an investment to have a better financial capability when they retire or in a much earlier stage of life.

They are taking those loans as part of their plans, either to have a good business or to invest the money on something that they understand well that will generate better amount of benefits.

that's true, in my environment there are many young people who always prioritize their lifestyle because they want to be seen by many people, and also currently whatever is available among young people must be luxurious because it can make them confident, maybe it's because of their high prestige. So in my environment it is not strange that many young people are willing to borrow money just to fulfill their desires while on the other hand they do not yet have a job with a steady income. There are also young people who demand that their parents buy them the newest items such as cellphones, vehicles or clothes, but they can't see the condition of their families so like it or not, as parents they have to please their children, so many parents also go into debt to fulfill their children's wishes. So, in my opinion, children like this don't have good thoughts, because they can't see the condition of their family, by forcing themselves to be stylish so that they look capable to other people so they apply for money loans.

If they are still young they should be able to think about the future, what about the future that they have prepared from an early age,  with their young age they should be able to work and have a clear income not only for their own good, but by having a job having a fixed income will ease the burden on parents and we can buy what we want without asking our parents or borrowing money. by having a job with a steady income they can save or invest for the future.

[gunhell16]

Yes, I agree. The borrowed money is often used for bad things like gambling, borrowing money to gamble, buying gadgets, used for bad habits etc. This is common among those who are in debt, so they are even more in debt.
Being debt is not always bad, it's up to you how you use the money properly to grow the money you borrowed.

That's the sad reality of our time: borrowing just for luxury or not using it properly. That's why I made this topic to give awareness to other communities here on this forum platform of ours.

And so that we can also see the other assessments of others, what are their personal views that are not in what I have said, and other criticism, if there is any, there is no problem. The important thing is to work together and give us our opinions on each other.

[Fredomago]

Yes, I agree. The borrowed money is often used for bad things like gambling, borrowing money to gamble, buying gadgets, used for bad habits etc. This is common among those who are in debt, so they are even more in debt.
Being debt is not always bad, it's up to you how you use the money properly to grow the money you borrowed.

That's the sad reality of our time: borrowing just for luxury or not using it properly. That's why I made this topic to give awareness to other communities here on this forum platform of ours.

And so that we can also see the other assessments of others, what are their personal views that are not in what I have said, and other criticism, if there is any, there is no problem. The important thing is to work together and give us our opinions on each other.

It helps especially to the readers who still doing the same, adjustment is needed if we wanted to allocate that money  for the betterment of our life,  just the same with what both of you are pointing,  using borrowed  money for the sake of luxurious lifestyle  will only bring burden to our finances, we should learn from that wrong perception and start thinking for the right  things to do, let the money works for you after borrowing either to create a small business or invest the money.

[Y3shot]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

Some people thinks loan is only meant to solve problems for things that are not unproductive, loans can also be use to create wealth but most people don't understand this.  Most companies and and organisations they take loan to build and to become firm, and with the loan they collect they can make good amout of profit.  The challenges people are having is that they do not have a good business ideas on how borrowed money can be use to gain wealth.

[erep]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

Some people thinks loan is only meant to solve problems for things that are not unproductive, loans can also be use to create wealth but most people don't understand this.  Most companies and and organisations they take loan to build and to become firm, and with the loan they collect they can make good amout of profit.  The challenges people are having is that they do not have a good business ideas on how borrowed money can be use to gain wealth.

Someone will be reckless in making a risky decision to use a loan for business or investment purposes even though you have the idea of planning to develop a business from loan funds, but think about the risks if you fail to manage the business because you don't have reserve funds to cover losses, then you must be prepared to bear two risks at once. Firstly, you failed to build a business or your business did not go according to plan but you have lost the loan capital and secondly you are responsible for paying off the debt on time if you don't want to pay high interest. However, I applaud productive business people who can build their business quickly and on target, so they can use a loan for a one year target in developing their business and you have to pay off the debt in one year too.

[Furious 7]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

Another thing that happens in this case is that those who are in lower living conditions or strata of life actually tend to use debt just to make ends meet, which creates endless problems in the end.

Different views on debt like this will always exist depending on the financial strength we have so it is difficult to make some breakthroughs and build a new mindset because in the end even though it can be done, things like this are sometimes difficult to realize.
Because after all, we must realize that when someone who has a very low economic level and cannot even be sufficient just to eat, the last thing they will do is try to borrow. They sometimes know that this is a mistake but because it is the last resort they can do they cannot refuse something like this and finally surrender rather than their lives being threatened. Although not all of them are like that, but in the end there must be people who do things like this.

[Casdinyard]

The thing is that it's a little hard for people to just make good debt out of nowhere. Especially for people with little to no safety nets. A great example of this would be middle-class income earners who would be able to practically take out a loan for a business that they may try to build, or perhaps a house loan for a property that they could rent out/flip for profit, but at the same time they don't have no plan b or a way to recover should things go south and their venture fails. It's one thing to take the safest route and miss out on the biggest changes in your life, but for some people it's just a massive risk that they can't take no matter what cause the drawbacks will literally cost them years of their lives.

Good debt can only work if you have money on the side that you can pay it with should you not become successful with the venture, and this is not being pessimistic it's just me being realistic about things. Perhaps the best way for middle to low-income earners is to just gauge their capabilities for debt and avoid taking loans as much as possible for any reason whatsoever. Cause for them taking a loan isn't staking a claim for a brighter future, it's literally stealing from their future selves.

[Hamphser]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

Another thing that happens in this case is that those who are in lower living conditions or strata of life actually tend to use debt just to make ends meet, which creates endless problems in the end.

Different views on debt like this will always exist depending on the financial strength we have so it is difficult to make some breakthroughs and build a new mindset because in the end even though it can be done, things like this are sometimes difficult to realize.
Because after all, we must realize that when someone who has a very low economic level and cannot even be sufficient just to eat, the last thing they will do is try to borrow. They sometimes know that this is a mistake but because it is the last resort they can do they cannot refuse something like this and finally surrender rather than their lives being threatened. Although not all of them are like that, but in the end there must be people who do things like this.

People wont learn until they would really be experiencing those devastation into their lives on which its not really that necessary or something that can be avoided but this is really likely the case on which
people would really be just tending to stop on the time that they would really be experiencing hardship and not into those earlier times that they could still be possibly be able to avoid or stop those unfortunate conditions. It is really just that a matter of on how you do handle up yourself on such condition and made out those outright decisions on which you do see that it could really be that beneficial for you.
Wrong thing is that people do make out those wrong assessment and ending up on bad decisions just because they do let those wants to be mainly prioritize rather than on opting for
making some business or investment first when we do speak about loan money or debt.

[shinratensei_]

What differentiates rich people's debt from poor people's debt is that rich people owe debt for something productive and prevent them from using a lot of their cash for goods or assets. They use their debt as much as possible to create new money for themselves.
However, poor people mostly owe money for unproductive things, such as vehicles or other assets, over a long period of time. They don't mind that they are using more of their money to pay down that unproductive debt. And that is what creates a lot of problems for them because they are not wise in using their debt.

Some people thinks loan is only meant to solve problems for things that are not unproductive, loans can also be use to create wealth but most people don't understand this.  Most companies and and organisations they take loan to build and to become firm, and with the loan they collect they can make good amout of profit.  The challenges people are having is that they do not have a good business ideas on how borrowed money can be use to gain wealth.

loan is good way to speed up the growth of our business if the loan are being taken advantage of responsibly, but here's the thing some people can't get some meaningful money from loan because they don't have asset in the first place in which usually are being used for collateral. therefore some people are just able to get a loan and used for rather "unproductive" thing like fulfilling basic needs and thats it.
its different with companies and organization they took loan for the sake of growing their tools of production extending further their business capabilities which means higher income, that because they have massive amount of asset in the first place, the bank would willing to give them money because the collateralized asset is there, nothing to worry about.