A lot wealthy people not smart they just use debt

[bitzizzix]

What is confusing is that rich people are not good at using debt, and if rich people are not smart why do they have to borrow money and what is the money for? Because most rich people borrow money because they have the intelligence to back it up so they can use debt for business, buying assets and so on to make more money.
And in general, smart rich people are people who borrow money from the bank and this is real, because my big boss also does it, not people who keep their money in the bank. Rich people are smarter people, so they borrow money to make more money supported by their knowledge and skills, which means rich people are generally smart.

[davis196]

When we had economy Crisis 2022 then there was report that Luxury cars had record sales offf course easy credit from the Banks
Banks don't care they can print the s..t out of the world

What "economy crisis" did you have in 2022? I don't remember having an "economy crisis" back in 2022. There was high inflation back then, nothing more.
I don't know what's the point of writing such wall of text/word salad. Can't you just summarize your thoughts in a few sentences.
Yeah, rich people are "not smart". I wonder why they are rich after all. And yes, everyone is borrowing money and the global economy is based out of debt. The fiat financial system will collapse in several years(or maybe decades) and we will wake up in a brand new financial world. I don't know if Bitcoin/crypto is going to be the solution for this problem. Maybe yes, or maybe no. Let's wait and see what will happen.

[passwordnow]

It's the difference between normal mind and business mind. Most of these business minded people comes from business family and their business depends on managing money to have maximum profit. We normal people need to think several times before taking a loan while these people takes loan after loan just to cover the previous loan.

The business people are using loan to leverage their time and money. With what they does is they're not using their entire capital to the business that they have. But they know that they can pay the debt and that's due to the cashflow that's being generated with that existing business that they have. They don't loan for the wants that they want but the need of the business that they have. There is a big difference in mind with those businessmen and the normal minds. And if someone who is loaning to pay the other loans, that's already a debt trap and hard to get out from it.

And no, you don't need to be intelligent or sharp to run a business, of course the sharp ones would a business mind would have more success but event he dumb ones with experience and idea about how it's being done can run a successful business at a limited scale. The bank too prefers to loan these traditional business than startups and the rates are lower with almost no matching collateral.

I'd prefer to say, experienced people does more in business. While those that have degrees in business, in paper they're good and professional but it's still different if someone who has various experience in managing businesses including the successful ones and the failed ones that they've started.

[YOSHIE]

A lot wealthy people not smart they just use debt

People's tastes in business are like that, actually those who run their companies or businesses with debt money, those who are actually not rich, They are poor on the outside and look rich, but inside they are actually poor.

The facts on the ground that we see are that rich people are stingy, rich people are rarely generous, that's a fact, generally those who are rich don't want to go into debt, they will do business with their own money without going into debt, In fact, I think that those who are in debt are the ones who are smart in managing money in real terms in running their business, because they know that the money they are running does not belong to them, Of course they will use the money professionally so that in the future the money they owe can improve their real economy, so that they become rich without being in debt, whether they are smart or not.

[STT]

Across an entire economy this debt leverage to business explains why recessions are so hard to bear.   All the easy money recedes like the tide going out and only then can you easily see what is not working, what is not productive.

Some people even state a recession is a positive for this reason, it forces rationalization of cash flow and expenses.   Without this an economy can become wasteful and unproductive, too concentrated on luxury over working goods that make the nation richer in its productivity.   It always happens, there is a cycle to the economy of excess.

[DabsPoorVersion]

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This kind of statement made me realize since 2019 that what most people say about credit cards are not real. they say you will have a huge debt if ever you get a credit card, or using credit card will only make your life worse.

At first I think the same way as this was the information planted in my mind, until I start my own research and see a lot of positive statements from credit card users who knows how to maximize the benefits of their card just like yours.

Since then, I am using my credit card and make use of the benefits they have. I use it everywhere, in my daily life and paying no additional fees since then. For annual fees, I can at least manage to waive it and continue to have a good credit score since then.

when I use a credit card i have the money to for it. I use the card to get say a 2% rebate.

So if I buy a refrigerator at best buy I get 5% rebate and an extra year of warranty at no cost if I use the best buy card.

so  $1000 refrigerator means a return of $50 . jut pay in about 40 days.

I let those rebates stack for a year or so then grab a gpu if gpu mining is hot.

I do this shit endlessly. Now that mining sucks I am selling off paid for older gear on ebay.

Its profit. I stack btc and some alts and some cash.


The key is do not get over extended on your credit.

But unfortunately ordinary people over extend themselves to buy liabilities and items
which lose value, particularly cars in my country.

The difference with business people end successful entrepreneurs is they borrow
money and use other peoples money to make profits. Whatever they buy with the
borrowed money it is expected that it will perform solely to make more money.

Common people use credit to buy stuff they want purely because it appeals to them
and it looks good. Often before that credit is paid off they get further in debt because
the shine has worn off that item and they replace it with the newer model.

That's what we call a bad debt. Usually, normal people do not know how to manage their spending using credit card. They often forget to spend within the amount they are capable to pay or the same as what you said of they purchase stuff that they want, usually it is to show off to other people to look like some rich man. A lot of people have that kind of situation even in our country, they don't know how to manage their debt and end up having a financial problem.

[Z_MBFM]

No one is born with a lot of wealth. to own a lot of wealth one has to work hard and also invest a lot of money. and the wealthy borrow to finance that investment. and banks can run their business only through their additional loans and when we put money in FD in banks, they lend to others and give us a percentage of the loan money with interest. Everything is done in a cycle. so taking loans of the rich is not only profitable for them, it is also profitable for various sides, we are also its circulators.

[angrybirdy]

No one is born with a lot of wealth. to own a lot of wealth one has to work hard and also invest a lot of money. and the wealthy borrow to finance that investment. and banks can run their business only through their additional loans and when we put money in FD in banks, they lend to others and give us a percentage of the loan money with interest. Everything is done in a cycle. so taking loans of the rich is not only profitable for them, it is also profitable for various sides, we are also its circulators.

Hmm, so what's your thought about nepo babies? They are born with generational wealth and they don't need to work hard just to get things that they want in life, but if you are a normal perso  who wants to get rich or wants to have a confortable life for your family then you need to work hard and to work smart just to gain a lot of money. for me, it's not enough that you just work unless you get the highest position and have the highest salary offer, but if you're a normal employee, it's hard or it'll take a long time before you can achieve the financial stability you're looking for. It's really better that we should have other sources of income such as sideline business or investment and of course we should also know how to handle money because if we don't know how, it's possible that all the money that passes through in our bank accounts will run out immediately if you don't use it properly.

[NotATether]

Robert Kiyosaki was a US citizen. I know he talked about how he used debt to become rich because he used his debts to purchase assets and not liabilities. The reason why I had to mention the country where this man comes from is because if he had come from another country, maybe an underdeveloped country, he probably would not have archived what he did archive with his debts.

He was the son of Japanese immigrants, and rather poor ones at that (well at least compared to whoever that rich dad guy is). His poor dad pushed him to get a degree and stuff like that.

It's a fact that you can actually take a loan to make an investment or purchase an asset but still don't get the expected returns due to the circumstances of the bad investment. For example, people are advised not to take out loans and invest in Bitcoin.

Well duh, Bitcoin is not a stable asset it is profitable but it it also takes a long time to get there, and most loans do not last that long and the lenders aren't as patient by comparison. It is strictly for short-term ventures.

Hmm, so what's your thought about nepo babies? They are born with generational wealth and they don't need to work hard just to get things that they want in life, but if you are a normal perso  who wants to get rich or wants to have a confortable life for your family then you need to work hard and to work smart just to gain a lot of money. for me, it's not enough that you just work unless you get the highest position and have the highest salary offer, but if you're a normal employee, it's hard or it'll take a long time before you can achieve the financial stability you're looking for. It's really better that we should have other sources of income such as sideline business or investment and of course we should also know how to handle money because if we don't know how, it's possible that all the money that passes through in our bank accounts will run out immediately if you don't use it properly.

We can't judge a person by their circumstances, only by their actions.

[Stablexcoin]

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Wealthy people do not fear debt instead they see debt as a means to get more money. Some poor people understand the concept of debt but are afraid to take one since they do not have collateral or a big business that can provide back such money they borrow if things go wrong in the investment or business. Another point is that the bank grant loans to wealthy people believing they are capable of paying the debt while they refuse to loan the poor because they have nothing. There are benefits that comes to an individual when he is rich that he didn't work for.