Debt Management.

[passwordnow]

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.

There's a less risky approach on it, as you've said that can be minimized. But for a restaurant business as an example, expanding to 5 branches with a loan depends on how huge the size of those branches. I wouldn't judge it quickly when the details aren't complete and that's why there's an assessment on doing it. But as we're talking about the safer approach, the best thing to do is to start with one branch first as your next branch to setup before doing all of it at once. Because when you take a loan and you're doing it all at once, you've got to be brave doing that.
But being brave won't be enough if you haven't planned it all along because you have to minimize the risk and the expenses that you're going to get isn't going be taken from other people but only from you and also you'll be the one to pay for it.

# 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.

Typically, those loans that have high interests are the ones that will give you easy and quicker process. But in the long run, you'll realize that you should have taken it and that's going to be a huge problem to you when the interest are compounding when you skip some of it but that only means you're irresponsible when you experience that.

[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)..

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.

Actually the only time something that is seen as liability will turn to an asset is dependent on what it is being used for like from the example about buying a house or building it from origin, even though you have acquired a lot of wealth from your investments, spending money on luxury should not be a prerequisite of people to know that you are a successful person except you acquire those luxury for business purposes like when you buy a house and you already own one you can actually use the one you bought for rents such that it will be bringing returns for you monthly or annually as the case may be instead of answering that you have assets scattered abroad but none is bringing dividends to you. The reference you made about cars is good but to me car is more of liability than an asset because you can buy a car today and crash the car or better still the cost of maintaining a luxurious car is much. And car doesn't appreciate because as times goes the value depreciates.

Bitcoin investment is good of a truth but after you have acquired all the wealth you want wouldn't you seek for comfort as well or will you keep holding till eternity? Obviously not so as we invest in Bitcoin we also seek for pleasure when we have met our investments target because certainly every investor have a target.

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

Bravo on your ideas here, you really said my mind here. I have seen some people acquire a lot of wealth but never had time for pleasure till their grave and the children they kept those wealth for larvish everything without thinking about the efforts their father put in place to make an easy way for them, this is why combining enjoyment and planning for the future is good just like you said, you can't acquire all the wealth without making out time to have fun and enjoy yourself to the fullest after all we only have one life to live.

You're actually right about Michael Saylor because instead of him to maintain some of the luxury he acquired it will even be better for him to acquire new ones instead maintaining the old ones when they are not productive. Growing one's investment to fund or acquire other life valuables is also good.

[wiss19]

I too believed that taking a debt is not a good idea and risky. But as I calculated my finance and mortgage, a long term loan to buy rising assets or things that helps you like land or doing business or even buying a car seem to be better option when you are paying it in multiple years. If the interest rate you pay are lower than inflation or your salary rise, you are in better position.
I took some loans for purchasing land and paid it in 7 years, On that period of time, the price of land doubled while my salary rose more than 50%. You should not be afraid of taking loans if you have two income sources in family and one alone is able to payback in worse case scenario.

Taking a long-term loan and using it to buy assets that will experience an increase, of course this will make us financially stable in the future, but we also have to see whether the interest offered is high or not because if the amount of interest we have to pay is very large, of course will make it difficult for us to pay it off, buying land will of course be very profitable for us because the price of the asset will continue to increase day by day, before we decide to take out a loan of course we must have thought about how to pay it off and never take out a loan if we can't finish it.

Debt management is not an easy thing to do, it requires years of experience, especially if someone is taking a loan to invest with it because you can't just think that you will buy a property with the loan that you will sell at a higher price in the future, pay the debt and keep the profit, that isn't how it works and things aren't as easy as they might seem when you are just talking about them. There are certain things one needs to think about before taking such a step.

A well-managed loan can make someone a millionaire, and bad management of debt can make a millionaire become homeless, that is how serious this is and some people think it is as easy as drinking water, you file an application, take the loan, do some business and investment and repay the loan, that is easy only when we say it.

[JayJuanGee]

[edited out]

The truth of the matter is that as time goes on, some things tagged as a liability will become an asset.

I would imagine that sometimes people might not be doing very proper accounting when they are generally putting various kinds of properties into boxes, because many times they will fit in both categories, and sometimes they will have more outweighing on one side versus the other, and that is not necessarily determined by its category but instead determined by the specifics of that particular piece of property.  If you have a house, but you also have a loan against the house, you likely have some ideas of its present valuation, and you project its future valuation based on certain attributes of the house including location, but there could be aspect of your maintenance and/or your improvements along the way or things that happen with the surrounding houses that affect its value.   If you are planning on living in the house for 30 years or more, then maybe you might not care about all of the details, even though you could well be affected by valuations at various points in terms of your paying off your loan or if you want to get further loans against it, and surely taxes can be affected by both valuation and by location.. and the same is true with decisions regarding whether to insure it and how much to insure it for, which also costs money with physical assets, and even if you choose not to insure it, then you are engaging in a kind of self-insurance and/or gambling that may or may not be justifiable. 

We also cannot always know if it ends up being a good place to put your value, since the house's physicality surely has liablity attributes to it, especially if after a few years, you want to move, or need to move to another location, then surely the house might be considered a liability - especially on a short timeline the market value might not have had ended up moving in your favor.

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.

Sure there can be a lot of advantages in having the non-physicality of a digital asset, and that seems to be a considerable advantage of bitcoin over gold, even though many times you hear the gold bugs arguing the opposite, and for sure,  not all digital assets are the same either, so there could be some pretty shitty digitial assets, but there can be some decently shitty digital assets that are pumped in the short-term and may even have decently long periods of outperforming the dollar and perhaps even outperforming a large number of traditional investment assets, yet there are still going to be needs to exercise some precautions in terms of how to valuate digital assets outside of bitcoin.

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.

It seems that any of us who have identified bitcoin as a great place to put our money are going to be handsomely rewarded for such, yet like you suggest, we still  have to consider our allocations, and it would be a bit much to keep all of our value in just this one asset, even if we recognize it as a great place to be.

Sometimes where we are, where we want to be and where we end up getting to can be quite different questions, since the situation regarding how to focus will partly depend upon from where we are starting, and if we come to bitcoin and we already have a bunch of other assets (and cash) and even debt, we may well want to increase our exposure to bitcoin, but we still might not suddenly change it, but instead weigh some of the pluses and minuses of having those other forms of assets, cash and debt and figure out how to include bitcoin into the mix and to increase our allocation into bitcoin - and frequently with bitcoin newbies, I will suggest trying to figure out some kind of a way to target 5% to 25% into bitcoin, and even if such newbie figures out his/her own particular target and then reaches it within 6 months to a year, the story may well not be over in terms of either needs to reassess if a new target might be needed or some new practice in the event that bitcoin's performance might well end up skewing the bitcoin investment to the upside, so then there could come questions about reallocating, if BTC might end up growing in value way faster than the other assets/currencies that are held.   

In late 2014, I had thought that a 10% allocation in bitcoin was good enough, but since BTC prices stayed so low during 2015, I ended up getting up to 13.5% allocation into bitcoin, but then bitcoin's growth after that had caused my allocation to get into the upper 80%s drop back to the mid 40%s and currently I may well be around 75% or something like that, but there can be questions about whether to reallocate or not or to let your winners ride (such as bitcoin, if it happens again?) and those might not be easy decisions to make in terms of how much of your wealth you might have into bitcoin and how you ended up getting it there (by investing into it or did it come through BTC price appreciation that ended up playing out way greater than your other assets).

Each of us has to make these various kinds of allocation decisions, and hopefully we are not rushing into such decisions, even though sometimes we might feel that we need to make reallocation decision and carry them out, and we could have some timeline pressures (or guidelines) that we set upon ourselves when we are making changes and how we go about employing such changes that we deem to be appropriate to our situation.

[CcnoutChopper19]

Taking a long-term loan and using it to buy assets that will experience an increase, of course this will make us financially stable in the future, but we also have to see whether the interest offered is high or not because if the amount of interest we have to pay is very large, of course will make it difficult for us to pay it off, buying land will of course be very profitable for us because the price of the asset will continue to increase day by day, before we decide to take out a loan of course we must have thought about how to pay it off and never take out a loan if we can't finish it.

Debt management is not an easy thing to do, it requires years of experience, especially if someone is taking a loan to invest with it because you can't just think that you will buy a property with the loan that you will sell at a higher price in the future, pay the debt and keep the profit, that isn't how it works and things aren't as easy as they might seem when you are just talking about them. There are certain things one needs to think about before taking such a step.

A well-managed loan can make someone a millionaire, and bad management of debt can make a millionaire become homeless, that is how serious this is and some people think it is as easy as drinking water, you file an application, take the loan, do some business and investment and repay the loan, that is easy only when we say it.

Yes, most likely it will only happen when they are able to manage and turn over the loan money properly, but still we can't say that it will really guarantee that you will be able to succeed and become a millionaire, if that is a certainty then it definitely is. many people do it and achieve success, but the fact is? Yes, not everyone is able to manage their loan money well. I think it is a fact that money is everything, but if you are not able to organize and manage that money then it is not impossible that this money could trigger various disasters.

In fact, it is not recommended to invest with borrowed money, one of the reasons is because there is no guarantee that involvement in investment will always make you successful in achieving profits. We cannot forget another fact that exists in the world of investment, namely the consequences of risks that are actually not can never be avoided altogether. This means that you have to really understand how investing actually works, don't just think about the profit opportunities, because it's not uncommon to see investors who end up in a downturn where they actually experience losses, especially if you do it using borrowed money which is indirectly certain. You will feel some unusual pressure because you have to return the money, meaning you have to really make sure that you will always be able to make a profit in the investment you make while on the other hand the possibility of risk could continue to lurk you, meaning you have to really Do a lot of careful consideration before finally taking out a loan.

[knowngunman]

This could all be avoided if we just never had debt in the first place

let's face it many people get debts for things they don't really need they just want to buy it but they cant afford it if they were to pay it as of the moment which is something we should really avoid doing

we should already save money, cut on expenses and make budgets before we even get into debts

Is it possible to be absolutely debt free? I doubt that. I quite agree with your submission but to some extent, some times debt becomes unavoidable not because we don't plan or make savings but simply due to circumstances that probably exceed our budget. No one will like to be addressed as a debtor if they have the means to have it in the first place. Yes, I know about making reservation savings for emergency cases too but some emergency consume more than we saved depending on the severity of the case and this will definitely lead to debt. Avoiding debt by whatever means is a good practice but it turns out to be last option sometimes.

A well-managed loan can make someone a millionaire, and bad management of debt can make a millionaire become homeless, that is how serious this is and some people think it is as easy as drinking water, you file an application, take the loan, do some business and investment and repay the loan, that is easy only when we say it.

This sounds easy to our ears without realizing that it doesn't always work out as plan. Majority of people would have been practicing this method if it is easier as we portray it. Being successful in business or investment is not just about management (thou it is the major factor) but sometimes luck plays important role too. You can have a good management plan and things might not work out as expected. I don't think obtaining loan for business or investment is a good idea in the first place.

[Zackz5000]

We also cannot always know if it ends up being a good place to put your value, since the house's physicality surely has liablity attributes to it, especially if after a few years, you want to move, or need to move to another location, then surely the house might be considered a liability - especially on a short timeline the market value might not have had ended up moving in your favor.

In a long run the house can also serve as an asset if the owner decided to rent it out, it can serve as a real estate Investment even if it not built in a good location I believe there are people that will want to park in since all fingers are not equal.

House can also be consider as an asset when it been rented out.
House is thing that appreciate value when rented out what the owner just need to do is to keep some cash aside probably at the end of the year for maintenance since it is giving the owner some cool cash at the end of the month or year and it will also be from year to year since it is been properly maintain unless it been affected by fire outbreak.

[Richbased]

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.

I see a lot of wisdom in your opinion because literally, there are old things that people finds more value than the new ones because most of the things they are producing now is of low and inferior quality regardless of the fact that they are costly. There are old things that you can still find valuable in some people's possession despite how old those things have been in their possession. In my country, I went to the house of a doctor and found a circuit breaker in his electrical switch and from my findings this circuit breaker have been there for over 30 years and each time there is a fault in the electrical connection of the building the circuit breaker automatically turns off in order to prevent severe damage and i have made attempts to purchase that same circuit breaker in the market but to no avail because the ones I saw was of inferior quality such that if there is a fault it will trip off but the circuit breaker will get spoilt and you will need to get a new one unlike that doctor's own that have stayed for over 30 years so imagine such an item if he decides to sell it how much it is gonna worth because he told me that someone offered a mouthwatering amount of money for him to sell the circuit breaker but he declined. So definitely some things that looks like a liability can turn to an asset in the future depending on how you maintain and protect those things.

other assets aside bitcoin is house and land because those are also volatile assets.

If it is about house it can be volatile depending on your maintenance level because if you don't give it a proper maintenance it can lose value in the future but you see land, I have never seen anyone sell a land at a lost price that is a price lesser than the one he bought it with except they sold it at a distress rate, maybe the person finds him/her self in a very difficult situations that they need money urgently then they can decide to cut the price in other to sell it at a cheap price in order to attend to their immediate needs.

However, for now bitcoin investment is the best anyone can think of because it gives you control over your holdings, you don't make arguments with anyone, you can't sell at a distress rate inasmuch as you are hodling for long term, the price appreciates even when a Dip happens it still comes back and continue to skyrocket.

[Btcdeybodi]

You are right about not involving in debt at all but what is there is that we do borrow some times not because we don't have money to sort our bills, but for investment purposes.

This is not an excuse. All investment ideas should include free money that will not affect your standard of living, especially the life of the person or organization that lends you the money. The fact that you don't have money to invest is just your problem; you need to learn how to solve it yourself. After all, things may not go according to plan, and you don't know what will happen tomorrow. I don't know the term "debt management." But I have heard the term "public debt management" or, ultimately, some kind of organization. You, OP, are confusing concepts by complicating the post with pretentious words. A normal person needs to learn to live without debt, and only after that should they think about some kind of investment, nothing more.

borrowing money for investment purposes should not be an excuse for taking a loan but there are some investments that you have done a background checks that the investment will yield good profits in the short run such that you can take a loan to finance that investment knowing fully well that if the investment doesn't work according to your plan you can sort out your debts with your income if you have a regular source of income. Business is a risk and except you have become successful in your field of business such that you now have the capital to finance other businesses or investments, businessmen/women always take loans to advance their business to greater level so far as it is a profitable business that the profits can take care of the loan and you also have some left over for yourself.

Of a truth every average person need to live without debts but even when we try to stay out of debts sometimes we can't help it anymore but any debtor should have the mindset of repayment and before anyone should take a loan they first need to make sure they have a source of setting their debts as at when due.

[KeenanEl19]

Each of us has to make these various kinds of allocation decisions, and hopefully we are not rushing into such decisions, even though sometimes we might feel that we need to make reallocation decision and carry them out, and we could have some timeline pressures (or guidelines) that we set upon ourselves when we are making changes and how we go about employing such changes that we deem to be appropriate to our situation.

Basically, we should make decisions with a cool head and not rush. Taking decisions hastily only allows for actions that may be at great risk, such as poor money management. If we can't manage our finances well, perhaps what will happen is continued shortages and shortages because unmonitored and uncontrolled expenses are caused by not having good money management, apart from that, when finances are in disarray and we are at a point where financial chaos is possible We have to borrow money, and this happens because poor money management results in spending that is not considered or making decisions without considering it first.

We must be able to make changes that lead to the better, such as by managing money that we don't have which results in less stressful expenses. From there, we must be able to think about establishing discipline in managing finances well, so that there are no unnecessary expenses that trigger money loans.

[xmonkeyx]

borrowing money for investment purposes should not be an excuse for taking a loan but there are some investments that you have done a background checks that the investment will yield good profits in the short run such that you can take a loan to finance that investment knowing fully well that if the investment doesn't work according to your plan you can sort out your debts with your income if you have a regular source of income. Business is a risk and except you have become successful in your field of business such that you now have the capital to finance other businesses or investments, businessmen/women always take loans to advance their business to greater level so far as it is a profitable business that the profits can take care of the loan and you also have some left over for yourself.

Of a truth every average person need to live without debts but even when we try to stay out of debts sometimes we can't help it anymore but any debtor should have the mindset of repayment and before anyone should take a loan they first need to make sure they have a source of setting their debts as at when due.

What has been conveyed is true, I would like to add that where in this life we must be grateful for whatever conditions we face, thus we are fortified from all desires that are not prioritized, but if the situation is urgent of course we find a solution by borrowing or owing to other parties, but it would be nice for us to look for a loan if there is an agreement to increase the interest even though we can pay more than lent for an amount not specified at the beginning of the loan.

[nara1892]

This sounds easy to our ears without realizing that it doesn't always work out as plan. Majority of people would have been practicing this method if it is easier as we portray it. Being successful in business or investment is not just about management (thou it is the major factor) but sometimes luck plays important role too. You can have a good management plan and things might not work out as expected. I don't think obtaining loan for business or investment is a good idea in the first place.

Considering that investment or business is something with uncertain profits, of course taking out a loan to run a business or investment is not a good idea. but sometimes we need to be brave enough to take risks, such as with business, of course, when we are sure that we have prepared everything and have considered everything to start a business, but still have problems with finances, there are people who are like that and dare to take risks, but of course they do. This must also be considered first. If you do this but don't consider it, it's the same as hoping for a miracle to happen.

What you say is correct, success is not measured only by management, but sometimes luck plays a role here. But don't expect us to do it continuously without considering the actions we will take, so that we only depend on luck, that's not true.

[Samlucky O]

[edited out]

The truth of the matter is that as time goes on, some things tagged as a liability will become an asset.

We also cannot always know if it ends up being a good place to put your value, since the house's physicality surely has liablity attributes to it, especially if after a few years, you want to move, or need to move to another location, then surely the house might be considered a liability - especially on a short timeline the market value might not have had ended up moving in your favor.

I don't think so. no matter what the case may be, a house is a volatile assets though the house may be outdated and looks warn out in the future but the fact still remain that the value of a house surely depends on land , area or location it is situated at. for example if a person bough a land and build house in a location close to the central capital of a state/city or any under developed area, maybe he bought the land at a price of $5k and build a house of $15k in the year 1990, as of today2024 the house in that land may worth nothing but civilization has met the house, so surely who ever bought the house is buying it due to location which is now civilize. the house can be bought at $100k or more, and can be demolished for another project that will attract business. so something house is not the asset but land is the assets. except is a kind of situation where the hose can be manageable in the Future like some house that has maintained it value for decades due to high standards material. even if the house is not sold and it's used for rentage, it will still be expensive because the house is situated in a civilized and a business oriented area. if the house was also used as a collateral for a loan, if the duration of the loan is properly calculated in interval of some years, you may discover that the interest rate of that loan may not be able to claim the house on the collateral agreement. because the value added to that house or land is above the interest rate. so sometimes such situation the house can Equally be sold and pay off outstanding loan and use the remaining to find a mini portable place which a person can leave comfortable expecially those who get bankrupt by the Level of the commitment on loan. so invariably house is an volatile asset in which ever way we see it.

I'm

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.

Sure there can be a lot of advantages in having the non-physicality of a digital asset, and that seems to be a considerable advantage of bitcoin over gold, even though many times you hear the gold bugs arguing the opposite, and for sure,  not all digital assets are the same either, so there could be some pretty shitty digitial assets, but there can be some decently shitty digital assets that are pumped in the short-term and may even have decently long periods of outperforming the dollar and perhaps even outperforming a large number of traditional investment assets, yet there are still going to be needs to exercise some precautions in terms of how to valuate digital assets outside of bitcoin.

when am talking about a digital asset, bitcoin is the focal point not generalising all digital asset. aside bitcoin I don't see any reasonable digital asset for now, bitcoin is the best, most other form of online digital asset looks like a gambling to me of course you know what I mean. when talking about a digital asset we should think of an asset that will last for decades with higher volatility in return and not some sort of gambling assets that will swift us of our hard earned money. money is hard to make so we should apply caution when investing because any lost that occurred as a result of fake investment will amount to wasting of energy and time you used in making that money. so investing in bitcoin guarantee more hope compeard to some other sort of investment. even though there might be pretty profitable investment aside bitcoin.

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.

It seems that any of us who have identified bitcoin as a great place to put our money are going to be handsomely rewarded for such, yet like you suggest, we still  have to consider our allocations, and it would be a bit much to keep all of our value in just this one asset, even if we recognize it as a great place to be.

yea that's why I said aside bitcoin, land and houses is another volitille assets we shouldn't forget that even as we preach about bitcoin, we should also think of diversification, not only in digital assets like bitcoin but some other physical investment too. it is often said that we should not put all our eggs in one basket, to avoid total loss when the worst case scenario happens which we pray not to.

[JayJuanGee]

[edite out]

yea that's why I said aside bitcoin, land and houses is another volitille assets we shouldn't forget that even as we preach about bitcoin, we should also think of diversification, not only in digital assets like bitcoin but some other physical investment too. it is often said that we should not put all our eggs in one basket, to avoid total loss when the worst case scenario happens which we pray not to.

There is no need to diversify for the sake of diversification.   Surely after one starts to build his wealth there might be some needs for diversification, but in the beginning of investing, and even the first few years there might not be enough to diversify, so it will depend on how much he has and if he has built a decent sized investment portfolio when diversification starts to make more sense.

And since you mentioned, digital assets, there is no need to diversify into shitcoins, so careful when you go down that path of thinking.

[Mr.sprin]

What has been conveyed is true, I would like to add that where in this life we must be grateful for whatever conditions we face, thus we are fortified from all desires that are not prioritized, but if the situation is urgent of course we find a solution by borrowing or owing to other parties, but it would be nice for us to look for a loan if there is an agreement to increase the interest even though we can pay more than lent for an amount not specified at the beginning of the loan.

Yes, that's right, it's okay to borrow money to open a business and business, don't borrow money for extravagance and waste money on useless things, rich people borrow money from business partners or colleagues to open new businesses or new businesses, with so their monthly income and profit is to cover yesterday's debt contributions, and they do that with management so it is easy and neatly arranged, management is really needed, not only for our savings, for debt there must also be management, so that it is neat and not careless.

[Cryptoprincess101]

[edite out]

yea that's why I said aside bitcoin, land and houses is another volitille assets we shouldn't forget that even as we preach about bitcoin, we should also think of diversification, not only in digital assets like bitcoin but some other physical investment too. it is often said that we should not put all our eggs in one basket, to avoid total loss when the worst case scenario happens which we pray not to.

There is no need to diversify for the sake of diversification.   Surely after one starts to build his wealth there might be some needs for diversification, but in the beginning of investing, and even the first few years there might not be enough to diversify, so it will depend on how much he has and if he has built a decent sized investment portfolio when diversification starts to make more sense.

And since you mentioned, digital assets, there is no need to diversify into shitcoins, so careful when you go down that path of thinking.

At the start of an investment even if you have enough money, diversification may not be necessary but to make sure that you stabilize and take your first investment to a certain length  whereby even if you diversify to other things it won't affect your first investment. Some people don't pay much attention to their first investment simply because they feel more comfortable in the one they diversified to but it is wrong to discard something that lifted you up and made wey for you to own other investments.
There is no digital asset that one can diversify to in the modern age that is better than Bitcoin.

[poodle63]

What has been conveyed is true, I would like to add that where in this life we must be grateful for whatever conditions we face, thus we are fortified from all desires that are not prioritized, but if the situation is urgent of course we find a solution by borrowing or owing to other parties, but it would be nice for us to look for a loan if there is an agreement to increase the interest even though we can pay more than lent for an amount not specified at the beginning of the loan.

Yes, that's right, it's okay to borrow money to open a business and business, don't borrow money for extravagance and waste money on useless things, rich people borrow money from business partners or colleagues to open new businesses or new businesses, with so their monthly income and profit is to cover yesterday's debt contributions, and they do that with management so it is easy and neatly arranged, management is really needed, not only for our savings, for debt there must also be management, so that it is neat and not careless.

the whole point of borrowing money or taking a loan should be entirely on whether they can make more by expanding their business or source of income instead of luxury.
most of people that takes loan because of wanting to indulge into luxurious life always ended up so broke they can't pay their bills and their due loan so they just went really bad with their financial condition just because they want to indulge into temporary luxury, even though honestly if i were them i wouldn't even be able to indulge into luxurious life knowing that probably within a year i'd become broke because of such terrible decision.
instead i'd be more focused on trying to earn more and more money through investment probably with that loan money and will be so fixated into paying the interest as well.
thats why debt management is so important.
knowing that a single mistake of entangled into debt could spell doom, definitely a bad way to go broke and its a unnecessary problem too.

[slapper]

What has been conveyed is true, I would like to add that where in this life we must be grateful for whatever conditions we face, thus we are fortified from all desires that are not prioritized, but if the situation is urgent of course we find a solution by borrowing or owing to other parties, but it would be nice for us to look for a loan if there is an agreement to increase the interest even though we can pay more than lent for an amount not specified at the beginning of the loan.

Yes, that's right, it's okay to borrow money to open a business and business, don't borrow money for extravagance and waste money on useless things, rich people borrow money from business partners or colleagues to open new businesses or new businesses, with so their monthly income and profit is to cover yesterday's debt contributions, and they do that with management so it is easy and neatly arranged, management is really needed, not only for our savings, for debt there must also be management, so that it is neat and not careless.

the whole point of borrowing money or taking a loan should be entirely on whether they can make more by expanding their business or source of income instead of luxury.
most of people that takes loan because of wanting to indulge into luxurious life always ended up so broke they can't pay their bills and their due loan so they just went really bad with their financial condition just because they want to indulge into temporary luxury, even though honestly if i were them i wouldn't even be able to indulge into luxurious life knowing that probably within a year i'd become broke because of such terrible decision.
instead i'd be more focused on trying to earn more and more money through investment probably with that loan money and will be so fixated into paying the interest as well.
thats why debt management is so important.
knowing that a single mistake of entangled into debt could spell doom, definitely a bad way to go broke and its a unnecessary problem too.

It's tempting to buy unnecessary items. Like a million times, friends get into difficulty with auto loans, vacations, and luxury items. It's not worth it. Desire for pleasant things is natural, but there are clever and not-so-wise ways to get them. Borrowing for investments that can boost your income is one thing. But debting for things that depreciate? That's stressful and regrettable.

It's not about owning expensive things to be wealthy. Financial security gives you piece of mind. Your money will grow if you save and invest. Live within your means to avoid worrying about debts. Yes, it's hard when others spend like crazy. I know, but the long game is best. If you keep focused and follow your ideals, you'll do better than short fix seekers. Young and smart. Stay educated and you'll secure your financial future.

[Smilevictorobinna]

I will love to point out something, when talking about debt is not a bad thing to be debt is good in certain areas and also bad in some areas, there are things that are worth being in debt for and there are things that don't worth it.
Example of things that worth it is

1.  real estate mortgage:
being in debt in other to have a home is a good one. This kind of debt helps you get closer to a long term goal.

2.  Business:
A lot of people wants to start up there own business but finds it difficult to raise the funds needed, taking loan to start up a good business is worth being in debt for because as time goes on you will clear the debt and your business will still be there for you.

Bad debt include

1.  Consumer goods:
From designer clothes to fancy furniture to fine art – generally if you are going into debt to purchase these kinds of consumer goods, this would be considered “bad debt” because of a high interest rate. These purchases rarely increase your net worth and earning potential.

[KeenanEl19]

I would imagine that sometimes people might not be doing very proper accounting when they are generally putting various kinds of properties into boxes, because many times they will fit in both categories, and sometimes they will have more outweighing on one side versus the other, and that is not necessarily determined by its category but instead determined by the specifics of that particular piece of property.  If you have a house, but you also have a loan against the house, you likely have some ideas of its present valuation, and you project its future valuation based on certain attributes of the house including location, but there could be aspect of your maintenance and/or your improvements along the way or things that happen with the surrounding houses that affect its value.   If you are planning on living in the house for 30 years or more, then maybe you might not care about all of the details, even though you could well be affected by valuations at various points in terms of your paying off your loan or if you want to get further loans against it, and surely taxes can be affected by both valuation and by location.. and the same is true with decisions regarding whether to insure it and how much to insure it for, which also costs money with physical assets, and even if you choose not to insure it, then you are engaging in a kind of self-insurance and/or gambling that may or may not be justifiable. 

We also cannot always know if it ends up being a good place to put your value, since the house's physicality surely has liablity attributes to it, especially if after a few years, you want to move, or need to move to another location, then surely the house might be considered a liability - especially on a short timeline the market value might not have had ended up moving in your favor.

Of course having a house requires maintenance costs, because to make us comfortable too, no one wants or feels comfortable living in an uncomfortable house, of course comfort is one of the things that many people are looking for, including a house as a place for us to come home to rest. and establish warm relationships with family. Of course the value of a house can also be determined by its details and location, but I think currently the house that has the highest value is the house located on the side of the road, even though there are risks such as possibly being hit by an accident, a house on the side of the road has a high value, especially if the location is strategic. . Apart from that, I think 30 years is not a short time, so if we live in the house for 30 years there will definitely be maintenance costs, in fact I think even if we stay for 5/10 years there will still be maintenance costs.

discussing the physical appearance of the house is up to us, if we are diligent, neat people, maybe we will take good care of it, because in my opinion there are people who are lazy about taking care of their house so they don't want to spend money on maintenance costs, and this makes their house have a low value. . I agree with you, indeed when we want to move or really need to move due to work conditions or other things, the previous house can be considered as a liability, and if it is in poor condition it can reduce its value so that it is not profitable for us.