Debt Management.

[jrrsparkles]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset.

There is a lot of misconception about loans. While the responsible ones are the people that you're describing.

Even if someone is being completely responsible still the outcome of their activities are not in their hands and also any business might bust at any time and that kind of era we are living in while loans have to be paid at any cost that is why we should not take loans beyond our tolerance level or it could made our life as a hell for sure.

[Jody.Drummer]

Pardon me if I'll step in but your discussion are interesting for me.
They say that don't stay on your comfort zone so that you're going to improve. It's true that comfort is addictive but if it's about with such situations that will help you to improve your life with so many things including debt management and financial knowledge, you need to make a choice now or you'd suffer tomorrow. It is so true that one won't make it and won't grow if he stays where he's comfortable but I can't blame them to that because even I, I'd choose comfort than any other challenge.

Actually, I think everyone definitely wants a comfortable life, therefore they look for what makes them comfortable. Also, I don't think it's wrong if we stick with things that make us comfortable, it's just that we have to be able to balance whether the comfort we feel allows us to progress or not. For example, if we are comfortable with the job we have, of course that's not a problem. What is a problem in my opinion is that those who are comfortable are in the wrong zone, such as spending time in vain every day, not being able to produce anything by doing things that make them comfortable, that's which is a problem and of course it is something that must be addressed.
When we are in a comfort zone, I think we have to be able to see first whether this comfort zone can produce results or not, because if it doesn't produce results then we should go out and look for other comforts that can produce something good like money. If we are trapped in a comfort zone that doesn't produce anything, it will only get us into trouble, such as having no income which could make us borrow money, but we don't know where we can get the money to pay for it.

[Proty]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset. When u are able to understand the difference between and asset and liability, them you use your loan money to acquire  an asset instead of liability that when you will get to know the benefit of taking loan.The man u just cited , acquired liability in form of an asset. Assuming the man decided to put the house for rentage , automatically he would have had an asset. Just like taking loan to get  a car for your personal use or to buy shitcoin. All these are liabilities in form of asset.

Are you being serious right now? How can you refer to a house as a liability in form of an asset like I don't understand. If he decides to sell the house so you think he can't sell it more than the amount he used in building it? I think you need proper understanding about asset and liability.

Sometimes we throw out some of the various terms without really putting them in a very good context in terms of how money might be used and whether it might be considered a productive asset or a consumptive asset, or whether it might appreciate or depreciate in value relative to other assets and/or relative to cash - including that there can be periods of time that some assets or cash perform well, and other times that they do not perform very well.

Of course, something like a house can involve a lot of liabilities in terms of maintenance costs, taxes and other possible fees - including potentially having to insure it because of its physicality - while locations make differences in regards to these matters too, including the kind of neighborhood that it is in that could unexpectedly end up affecting its value in one direction or another based on what others are doing in the neighborhood.

Surely, a house has a utility value that comes from being able to live in it and having some autonomy over it that may well not come from a rental situation, yet at the same time houses do not always go up in value, including problems with macro dynamics that involve bubbles and even sometimes some of the seeming manipulations that might happen in housing - so surely in all cases, we cannot necessarily consider housing to be an appreciating asset or even a desirable asset in some circumstances in which markets might get perverted based on political or economic dynamics.... yet that does not necessarily mean property ownership is not a good thing or that it would not be a good idea to borrow in order to acquire and/or accumulate property... even though there are possibilities of getting burned on it.

We have a lot of examples in recent times in which folks who are not able to get loans might never be able to save enough to buy a house, and similar dynamics have happened historically, and houses might not be the ONLY kind of higher ticket item in which there are advantages to use debt to get it earlier rather than later, even if there could be some ways in which the house might not really be appreciating in value greater than if they money had been invested elsewhere - even with buying a car, there could be some questions about the car being a depreciating asset, yet there could also be ways that the car helps to increase income and/or productivity in such ways that the car mostly ends up paying for itself - which truly is not always the case with all kinds of cars that people buy, including sometimes they buy extra cars that might not have much if any utility value.

I really love the points you have made  here more especially in the aspect of a house involving alot of liabilities which  is quite right and many will end up borrowing money to acquire liabilities. Even a car can also be an asset and also a liability, if you acquire a car for your personal use and you are not using it for any business that it will generate income them the car is a liability. You can also buy a car and be using it for transportation business ,automatically is generating income which makes it an asset. So am of the opinion that if you take loans ,use the money to acquire asset and not liabilities.

[JayJuanGee]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset. When u are able to understand the difference between and asset and liability, them you use your loan money to acquire  an asset instead of liability that when you will get to know the benefit of taking loan.The man u just cited , acquired liability in form of an asset. Assuming the man decided to put the house for rentage , automatically he would have had an asset. Just like taking loan to get  a car for your personal use or to buy shitcoin. All these are liabilities in form of asset.

Are you being serious right now? How can you refer to a house as a liability in form of an asset like I don't understand. If he decides to sell the house so you think he can't sell it more than the amount he used in building it? I think you need proper understanding about asset and liability.

Sometimes we throw out some of the various terms without really putting them in a very good context in terms of how money might be used and whether it might be considered a productive asset or a consumptive asset, or whether it might appreciate or depreciate in value relative to other assets and/or relative to cash - including that there can be periods of time that some assets or cash perform well, and other times that they do not perform very well.

Of course, something like a house can involve a lot of liabilities in terms of maintenance costs, taxes and other possible fees - including potentially having to insure it because of its physicality - while locations make differences in regards to these matters too, including the kind of neighborhood that it is in that could unexpectedly end up affecting its value in one direction or another based on what others are doing in the neighborhood.

Surely, a house has a utility value that comes from being able to live in it and having some autonomy over it that may well not come from a rental situation, yet at the same time houses do not always go up in value, including problems with macro dynamics that involve bubbles and even sometimes some of the seeming manipulations that might happen in housing - so surely in all cases, we cannot necessarily consider housing to be an appreciating asset or even a desirable asset in some circumstances in which markets might get perverted based on political or economic dynamics.... yet that does not necessarily mean property ownership is not a good thing or that it would not be a good idea to borrow in order to acquire and/or accumulate property... even though there are possibilities of getting burned on it.

We have a lot of examples in recent times in which folks who are not able to get loans might never be able to save enough to buy a house, and similar dynamics have happened historically, and houses might not be the ONLY kind of higher ticket item in which there are advantages to use debt to get it earlier rather than later, even if there could be some ways in which the house might not really be appreciating in value greater than if they money had been invested elsewhere - even with buying a car, there could be some questions about the car being a depreciating asset, yet there could also be ways that the car helps to increase income and/or productivity in such ways that the car mostly ends up paying for itself - which truly is not always the case with all kinds of cars that people buy, including sometimes they buy extra cars that might not have much if any utility value.

I really love the points you have made  here more especially in the aspect of a house involving alot of liabilities which  is quite right and many will end up borrowing money to acquire liabilities. Even a car can also be an asset and also a liability, if you acquire a car for your personal use and you are not using it for any business that it will generate income them the car is a liability. You can also buy a car and be using it for transportation business ,automatically is generating income which makes it an asset. So am of the opinion that if you take loans ,use the money to acquire asset and not liabilities.

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

[Cryptoprincess101]

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

I am also interested in this discussion going on here because everyone is open to knowledge because there are things in life we just feel that we are doing it rightly but in an actual sense we are wrong. Now coming to the area of building a house for comfort does it mean we should instead make investments instead of building houses that will stand as a liability due to the cost of maintenance? Or while making investments we shouldn't also need to live a comfortable life? We shouldn't buy cars or build houses and focus more on making productive investments even when we become successful investors?

Talking about Michael Saylor, we all know that he is a lover of luxury and a successful investor so the cost of maintaining his assets will not be a problem for him because he already got the money to take care of those things. Even though he charters out his yachts will they not go through maintenance from time to time? If we keep looking towards things that will bring about  only assets  to us and not liability that means we may end up not enjoying life at all after all we all have limited time on earth here so while we are also making investments that will give us a better future, there need to live a comfortable and enjoyable lifestyle.

[Proty]

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

I am also interested in this discussion going on here because everyone is open to knowledge because there are things in life we just feel that we are doing it rightly but in an actual sense we are wrong. Now coming to the area of building a house for comfort does it mean we should instead make investments instead of building houses that will stand as a liability due to the cost of maintenance? Or while making investments we shouldn't also need to live a comfortable life? We shouldn't buy cars or build houses and focus more on making productive investments even when we become successful investcar?

Talking about Michael Saylor, we all know that he is a lover of luxury and a successful investor so the cost of maintaining his assets will not be a problem for him because he already got the money to take care of those things. Even though he charters out his yachts will they not go through maintenance from time to time? If we keep looking towards things that will bring about  only assets  to us and not liability that means we may end up not enjoying life at all after all we all have limited time on earth here so while we are also making investments that will give us a better future, there need to live a comfortable and enjoyable lifestyle.

You Misunderstood the whole point nobody is saying you should not build a house or buy a car but using borrowed money because house is not a good investment, when you take loan you ought to invest it wisely because you will still pay back so to avoid story in the long run, borrowed money should be used to acquire asset and not liabilities that are in form of asset. You also talk about comfortable live ,no right thinking man will take loan in order to live a comfortable life. You should be talking about comfortable life with your hard earned money .it is  very unwise to take loan and be talking of luxurious life. Michael saylor you said is a successful investor which means his income is far greater than his expenses and his assets are greater than his liabilities. so the luxurious life ,comfortable life, being able to maintain his assets all of this are expenses which doesn't equate his income.

[Cryptoprincess101]

You Misunderstood the whole point nobody is saying you should not build a house or buy a car but using borrowed money because house is not a good investment, when you take loan you ought to invest it wisely because you will still pay back so to avoid story in the long run, borrowed money should be used to acquire asset and not liabilities that are in form of asset. You also talk about comfortable live ,no right thinking man will take loan in order to live a comfortable life. You should be talking about comfortable life with your hard earned money .it is  very unwise to take loan and be talking of luxurious life.

No don't misquote me all am saying is that since there are assets that are in form of liability that does it mean we should not acquire them even when we have the money and resources to take care of them? And you saying house is not a good investment is a wrong perception like how can you really say that? Those who build houses for real estate businesses can you also tell them that house is not a good investment? You should have said that it is dependent on what you want to use the house for but I don't see any reason why anyone will say that house is not a good investment even though it may depreciate in value if not taken care of or well maintained.
    To clear your doubts, house is a good investment because if well maintained it's value will increase as time goes on and again if you build a house you have given yourself and your family a lifetime shelter such that no matter where ever they go to they will know they have a home to come back to and again your offspring can inherit the house when you are no longer there so i see no reason why you said house is not a good investment.

[Proty]

You Misunderstood the whole point nobody is saying you should not build a house or buy a car but using borrowed money because house is not a good investment, when you take loan you ought to invest it wisely because you will still pay back so to avoid story in the long run, borrowed money should be used to acquire asset and not liabilities that are in form of asset. You also talk about comfortable live ,no right thinking man will take loan in order to live a comfortable life. You should be talking about comfortable life with your hard earned money .it is  very unwise to take loan and be talking of luxurious life.

No don't misquote me all am saying is that since there are assets that are in form of liability that does it mean we should not acquire them even when we have the money and resources to take care of them? And you saying house is not a good investment is a wrong perception like how can you really say that? Those who build houses for real estate businesses can you also tell them that house is not a good investment? You should have said that it is dependent on what you want to use the house for but I don't see any reason why anyone will say that house is not a good investment even though it may depreciate in value if not taken care of or well maintained.
    To clear your doubts, house is a good investment because if well maintained it's value will increase as time goes on and again if you build a house you have given yourself and your family a lifetime shelter such that no matter where ever they go to they will know they have a home to come back to and again your offspring can inherit the house when you are no longer there so i see no reason why you said house is not a good investment.

I am not saying you shouldn't buy a house or those liabilities that are in form of asset ,you can buy or build house if you have the money but what am saying is you shouldn't take loan to get them ,rather you can take loan to get an asset them the money you generate from the asset you can use it to build house, cars etc after paying the loan. house not been a good investment,well I shouldn't have use the word investment ,what am saying is those that take loan to build family house thinking is an asset. Simply put ,an asset is anything that put money to your pocket while liabilities are those things that take money from your pocket. Though there are liabilities that looks like asset which they are not, so taking loan to acquire them to me not a good idea because so many people have been complain that taking of loan is not good which I believe that they have been using the loan money to acquire liabilities that they think are asset, which makes it impossible for them to be able to pay back the loan.

[slapper]

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

I am also interested in this discussion going on here because everyone is open to knowledge because there are things in life we just feel that we are doing it rightly but in an actual sense we are wrong. Now coming to the area of building a house for comfort does it mean we should instead make investments instead of building houses that will stand as a liability due to the cost of maintenance? Or while making investments we shouldn't also need to live a comfortable life? We shouldn't buy cars or build houses and focus more on making productive investments even when we become successful investors?

Talking about Michael Saylor, we all know that he is a lover of luxury and a successful investor so the cost of maintaining his assets will not be a problem for him because he already got the money to take care of those things. Even though he charters out his yachts will they not go through maintenance from time to time? If we keep looking towards things that will bring about  only assets  to us and not liability that means we may end up not enjoying life at all after all we all have limited time on earth here so while we are also making investments that will give us a better future, there need to live a comfortable and enjoyable lifestyle.

Be honest about financial independence. Not simply cash hoarding. Spending wisely, spreading it out, and knowing when to spend and when to save are important. Michael Saylor has everything: yachts, aircraft, etc. He's good at his game. But for regular Joes, it's different. We must combine enjoying life now and planning for the future

Homes and cars aren't foolish moves by default. When and what you do matter. If your luxury car costs you everything in repairs, it's a liability and a burden. If handled well, it may be a pleasure and a valuable asset. Even rich guys can fail. Saylor may not care about maintenance because he's rich. Investing in luxury without a solid foundation is like jumping off a cliff without a strategy for most people

You don't need Saylor's billions to succeed. Focus on growing investments to fund nicer goods. To avoid choosing between today's happiness and tomorrow's security. Building a joyful, financially secure life. Simple: make smart choices and make your money work for you

[0t3p0t]

That is why we choose which kind of debt we are up into whether it is a good or a bad debt we can personally decide. The only problem is that majority of people use bad debt to fund things they don't even need I mean those "wants" are the worst liability for me because I've been there before but then I realize I had to change my mindset or else I will be having a never ending debt.

[GeorgeJohn]

That is why we choose which kind of debt we are up into whether it is a good or a bad debt we can personally decide. The only problem is that majority of people use bad debt to fund things they don't even need I mean those "wants" are the worst liability for me because I've been there before but then I realize I had to change my mindset or else I will be having a never ending debt.

from my own understanding and my reasoning to be a debtor it's not really good and it damages the image of the person so that is why I don't like to inform myself owing someone because I know something that it will result tomorrow, owing a somebody a something that have to do with the this regard in Society because when you are owing someone the person would like respect on you and they will also this regard you when you have not refund him or her money when you are not supposed to make a refund

[Princess Leah]

That is why we choose which kind of debt we are up into whether it is a good or a bad debt we can personally decide. The only problem is that majority of people use bad debt to fund things they don't even need I mean those "wants" are the worst liability for me because I've been there before but then I realize I had to change my mindset or else I will be having a never ending debt.

from my own understanding and my reasoning to be a debtor it's not really good and it damages the image of the person so that is why I don't like to inform myself owing someone because I know something that it will result tomorrow, owing a somebody a something that have to do with the this regard in Society because when you are owing someone the person would like respect on you and they will also this regard you when you have not refund him or her money when you are not supposed to make a refund

Taking loans or borrowing to fund unnecessary stuffs is not a good idea anyone who does that should think twice and retrace their steps, it would be more profitable if you take loans to invest in a good business, atleast you could make profits and clear your debts and not on using borrowed money to fund unnecessary items or lavish lifestyle, I attracts embarrassments when you're unable to pay up.

 Just like my dad use to advise my mom when she's thinking of taking loans from friends , he'll always say taking debts is not good, whether the lender is your friend or close family, he also mentioned that a debtor is like a slave to the lender and the person who lends could treat you bad or embarrass you in public, which is the damage of image mentioned by George John.

 I've witnessed people quarrel and fight over an unpaid debt and it's so embarrassing and I won't like to see myself in such situations therefore I'll always avoid anything that could make me be in debt to anyone and even when I'm in debt, I try to pay off on time so as to avoid unnecessary embarrassment that could've been prevented.

[passwordnow]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset.

There is a lot of misconception about loans. While the responsible ones are the people that you're describing.

Even if someone is being completely responsible still the outcome of their activities are not in their hands and also any business might bust at any time and that kind of era we are living in while loans have to be paid at any cost that is why we should not take loans beyond our tolerance level or it could made our life as a hell for sure.

It's true that being in a business is like a hit or miss. But I believe those that take loans for businesses, it's not literally for start but more of expansion and continuity of what they have started. Because they've seen that the potential is happening and growing, but because of having no one on their wing that has huge funds to fund their continuity and scaling, they are needing to take a loan.
That's the gamble that they're doing although not literally a gamble but the risk is still there despite that they're seeing the growth of it. What many don't know is they have to take loans only if they are really in need and they are generating money. Not to take a loan for starting a business, that's actually the bust there.
You're putting up something to your head that will crack it without thinking. You have to do better if it's about the loans because the money that you're going to pay there will come from your hard work and sum with it the interest that's gonna give you a suck in the emotion when you've realized how much you have just paid for that.

[Negotiation]

That is why we choose which kind of debt we are up into whether it is a good or a bad debt we can personally decide. The only problem is that majority of people use bad debt to fund things they don't even need I mean those "wants" are the worst liability for me because I've been there before but then I realize I had to change my mindset or else I will be having a never ending debt.

I have seen many people who take out loans for unnecessary work and then face the risk of running out of money and not being able to repay the loan properly. It is true that if it is not necessary to change their mentality they will never be able to get out of this debt problem. He expects that the loan given by the bank along with interest will be returned on time. If it is not returned in time then the risk that arises.

[KeenanEl19]

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

I agree with what you said, in my opinion owning a car with classic value can be considered an asset, as time goes by of course cars or other property with classic value will have a higher price. Also, by owning a yacht, of course we can use it to rent it out to make a profit and of course that's not a bad thing either. Having perhaps more than one house can already be considered an asset, because of course not only that, its value can also increase, especially since the house is in a strategic location.

Even though building a house or owning a house requires maintenance costs, that doesn't mean we don't have to have a house, because a house is one of the things that must be considered and must be owned. Also I think if you compare a house with a car or anything else, the house is still the most important thing. However, it is also not recommended to take out a loan to enjoy life, of course if you want to take out a loan you have to do the right thing. Having a good mindset is a must, taking out a loan is no problem if it is used for the right things. If you do take out a loan then it must be used for something that can generate a profit, but if it is to make your life comfortable it doesn't seem like it's really mandatory.

[GigaBit]

Debt or borrowing is not looked upon favorably, those who can manage the loan process properly can certainly reach their goals faster than others. I am not advocating debt but sharing some ideas on how to manage debt and pay it off faster. A borrower must be prudent. Especially in all work related to money.

A debt holder must first determine why he takes the loan. It should be carefully observed whether there is any logical reason behind it or not. In many cases I see people who don't need loans but are still taking loans. In such a situation, you should avoid lending.

I would like to focus on a few points.


# To manage loans properly, a borrower must monitor his finances against his loans. The total loan and interest rate must be determined. If there is any other debt it should also be monitored.

# Before taking a loan a borrower should consider the type of loan to take. Some loans have high interest rates while others are very suitable according to the customer's situation.

# It is important to plan the loan financing in advance. Because loan money should never be used beyond the plan. This will increase the debt burden.

# Borrower must show awareness of every expenditure.
 
# In addition, the borrower should also be able to budget the loan amount. Decisions should be taken after observing what is necessary and what is not necessary at that time.

If loan taker manages their loan by following the points I have mentioned along with others then there will be more benefits in loan management.

[Samlucky O]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset. When u are able to understand the difference between and asset and liability, them you use your loan money to acquire  an asset instead of liability that when you will get to know the benefit of taking loan.The man u just cited , acquired liability in form of an asset. Assuming the man decided to put the house for rentage , automatically he would have had an asset. Just like taking loan to get  a car for your personal use or to buy shitcoin. All these are liabilities in form of asset.

Are you being serious right now? How can you refer to a house as a liability in form of an asset like I don't understand. If he decides to sell the house so you think he can't sell it more than the amount he used in building it? I think you need proper understanding about asset and liability.

Sometimes we throw out some of the various terms without really putting them in a very good context in terms of how money might be used and whether it might be considered a productive asset or a consumptive asset, or whether it might appreciate or depreciate in value relative to other assets and/or relative to cash - including that there can be periods of time that some assets or cash perform well, and other times that they do not perform very well.

Of course, something like a house can involve a lot of liabilities in terms of maintenance costs, taxes and other possible fees - including potentially having to insure it because of its physicality - while locations make differences in regards to these matters too, including the kind of neighborhood that it is in that could unexpectedly end up affecting its value in one direction or another based on what others are doing in the neighborhood.

Surely, a house has a utility value that comes from being able to live in it and having some autonomy over it that may well not come from a rental situation, yet at the same time houses do not always go up in value, including problems with macro dynamics that involve bubbles and even sometimes some of the seeming manipulations that might happen in housing - so surely in all cases, we cannot necessarily consider housing to be an appreciating asset or even a desirable asset in some circumstances in which markets might get perverted based on political or economic dynamics.... yet that does not necessarily mean property ownership is not a good thing or that it would not be a good idea to borrow in order to acquire and/or accumulate property... even though there are possibilities of getting burned on it.

We have a lot of examples in recent times in which folks who are not able to get loans might never be able to save enough to buy a house, and similar dynamics have happened historically, and houses might not be the ONLY kind of higher ticket item in which there are advantages to use debt to get it earlier rather than later, even if there could be some ways in which the house might not really be appreciating in value greater than if they money had been invested elsewhere - even with buying a car, there could be some questions about the car being a depreciating asset, yet there could also be ways that the car helps to increase income and/or productivity in such ways that the car mostly ends up paying for itself - which truly is not always the case with all kinds of cars that people buy, including sometimes they buy extra cars that might not have much if any utility value.

I really love the points you have made  here more especially in the aspect of a house involving alot of liabilities which  is quite right and many will end up borrowing money to acquire liabilities. Even a car can also be an asset and also a liability, if you acquire a car for your personal use and you are not using it for any business that it will generate income them the car is a liability. You can also buy a car and be using it for transportation business ,automatically is generating income which makes it an asset. So am of the opinion that if you take loans ,use the money to acquire asset and not liabilities.

Generally speaking, people will still tend to consider houses as assets rather than liabilities, and surely there are some kinds of houses that will have higher maintenance costs and/or taxes than others, and surely houses are considered to hold their value better than cars, since cars tend to be a depreciating asset if bought new, but sometimes a used car may hold its value or even gain in value if it is classic or a collector's item, so we still have to be careful if we try to generalize too much in regards to how much some thing that we buy might be considered an asset versus a liability, because something like a yacht could still be considered an asset, even if it costs a lot to maintain, and maybe more if we are putting it into service, but it could generate income too if we were able to rent it out in ways that ended up being profitable and NOT too inconvenient, in the case that we actually were to have a yacht... According to this article Michael Saylor owns two yachts and three houses and a Jet.. so those could be assets, but they are also liabilities in terms of how much maintenance and labor they likely take, even though the article says that Saylor charters out his yachts (or they are available for chartering)..

The truth of the matter is that as time goes on, some things tagged as a liability will become an asset. Simply because people find them more interesting than the new ones or find more special features in them just classic is Just the right description. Those classic car can appreciate in value as time goes on. Though the maintenance cost is another thing but it is necessary to have more Investment in digital asset like bitcoin than having alot on physical assets that may turn to a liability or may add in value in due time. Having a major asset in bitcoin saves us from much tax and maintenance cost because expensive or luxury items need enough capital to maintain them, but bitcoin Investment don't need any of them. So in my sudjestion luxury items like cars need not to be much to have but having 1 and investing all other amount in bitcoin. other assets aside bitcoin is house and land because those are also volatile assets.

[jrrsparkles]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset.

There is a lot of misconception about loans. While the responsible ones are the people that you're describing.

Even if someone is being completely responsible still the outcome of their activities are not in their hands and also any business might bust at any time and that kind of era we are living in while loans have to be paid at any cost that is why we should not take loans beyond our tolerance level or it could made our life as a hell for sure.

It's true that being in a business is like a hit or miss. But I believe those that take loans for businesses, it's not literally for start but more of expansion and continuity of what they have started. Because they've seen that the potential is happening and growing, but because of having no one on their wing that has huge funds to fund their continuity and scaling, they are needing to take a loan.
That's the gamble that they're doing although not literally a gamble but the risk is still there despite that they're seeing the growth of it. What many don't know is they have to take loans only if they are really in need and they are generating money. Not to take a loan for starting a business, that's actually the bust there.
You're putting up something to your head that will crack it without thinking. You have to do better if it's about the loans because the money that you're going to pay there will come from your hard work and sum with it the interest that's gonna give you a suck in the emotion when you've realized how much you have just paid for that.

That's right but people can't be in their control all their time and especially when when they took money in their hands and the chances of being spent them on things they wanted is higher than they are in need. Now back to topic there is always risk when it comes to money making whether its business or investment but the conservative approach can minimize the risk part.Let's say one is having a successful profit making restaurant now they want to expand it for that they need loan which is fine but taking loan to expand it to 5 is huge risky while taking loan to open one by one is the conservative.

[ultrloa]

The statement that loan hinders some people from achieving their goal is quite wrong , many people take loan to acquire asset which they end up acquiring liability in form asset.

There is a lot of misconception about loans. While the responsible ones are the people that you're describing.

Even if someone is being completely responsible still the outcome of their activities are not in their hands and also any business might bust at any time and that kind of era we are living in while loans have to be paid at any cost that is why we should not take loans beyond our tolerance level or it could made our life as a hell for sure.

It's true that being in a business is like a hit or miss. But I believe those that take loans for businesses, it's not literally for start but more of expansion and continuity of what they have started. Because they've seen that the potential is happening and growing, but because of having no one on their wing that has huge funds to fund their continuity and scaling, they are needing to take a loan.
That's the gamble that they're doing although not literally a gamble but the risk is still there despite that they're seeing the growth of it. What many don't know is they have to take loans only if they are really in need and they are generating money. Not to take a loan for starting a business, that's actually the bust there.
You're putting up something to your head that will crack it without thinking. You have to do better if it's about the loans because the money that you're going to pay there will come from your hard work and sum with it the interest that's gonna give you a suck in the emotion when you've realized how much you have just paid for that.

That's right but people can't be in their control all their time and especially when when they took money in their hands and the chances of being spent them on things they wanted is higher than they are in need. Now back to topic there is always risk when it comes to money making whether its business or investment but the conservative approach can minimize the risk part.Let's say one is having a successful profit making restaurant now they want to expand it for that they need loan which is fine but taking loan to expand it to 5 is huge risky while taking loan to open one by one is the conservative.

Its important to have a proper study on their target markets so that they will not step into more risky situation since expansion doesn't guarantee any success that's why they need to study it will and don't do any aggressive approach especially for their growth since there maybe a heavy complication will happen to it. That's why sometimes I agree that it need to open up one by one especially if the money used is loaned amount so there's no total destruction of business will happen if there's unfortunate situation will occur. But if they believe that they have a solid business model and want to expand it more faster then maybe they should try to franchise it and offer it to aspiring businessmen since from that they can get away with loans and can properly manage their finances but as well they would have a great sales increase by help of those people who want to franchise their business.

[Obim34]

A debt as per taking loans is not a bad idea or initiative it depends on your purpose of collecting that loan. I see mainly two reasons for taking loans, one for emergency and the other for investment purposes. Do we know the wealthy people are always in debt, not that they don't have more than enough to do that which they want but they prefer taking loans to do such. The wealthy people usually have their money in shares or stocks other than in banks, so imagine if they would want to engage in a new kind of investment which means they would have to sell parts of that stocks just to invest which has automatically reduced their profits over the years and I do not see it as the perfect choice.

Why most people are usually indebted and becomes a slave likely as what you said, is because they have no source to repay back or in a way trying to be impressive and portray what they not.