A lot wealthy people not smart they just use debt

[Akbarkoe]

Debt is not always bad, if debt can be managed well it will produce profits. And very rich people are people who are good at managing the debt they have well.

Debt can indeed give rise to an obligation to pay it off along with interest, either every month or within a certain period, according to the agreement of both parties. However, by going into debt we can have something that is beyond our reach, for example a house, for example the house we dream of is worth millions of dollar, we can buy it by saving, but how long will the funds be collected. full? Not to mention that the inflation that occurs every year can have an impact on the value of houses and land becoming higher, increasing many times or even the stock can be sold out. So that in the end debt becomes a solution to answer these problems. Because if not, maybe we will lose the opportunity to get that house.

On the other hand, debt can also help us to always be able to get and take advantage of every opportunity that comes. And usually this is done by business people and investors, they use debt to develop their business or get investment opportunities with quite high profits.

Debt is typically viewed in a negative light; however, but if managed well, it can be a very effective tool for achieving financial goals and generating profits.. Those who are able to manage debt prudently and strategically are often among the wealthiest individuals.

The concept of debt can help us acquire something we may not easily attain through saving alone. In a way, borrowing is a pragmatic approach to realizing our aspirations. Moreover, debt offers flexibility which enables us to seize favorable opportunities. In fact, many entrepreneurs and investors leverage debt as a means to grow their business or inject funds into high-return prospects. Through debt, they are able to access supplementary finance required for expanding the business scope, buying new assets or investment in profitable projects

Nevertheless, the primary element in using debt is indeed good management, it should be noted that plunging headfirst into debt without due contemplation and an evaluation of one's capacity to return the funds can spell out grave financial woes.

[batang_bitcoin]

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

[Vinaa77]

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

[reagansimms]

~~~

If wealthy people use debt to get rich and richer, isn't this kind of like the secret to being wealthy? Poor people should simply follow in that footsteps too. They should go the bank and take out a loan, you it to start up a small business and stay committed to it and when the business booms, they can be able to pay off their debts with the interest. They don't have to take a large amount out as loan initially so that they are not under too much pressure, they should start with something small and build up from there. This is one way that they can build wealth.

Poor people who do not have enough capital must have a strategy to solve problems without leaving problems. Taking a loan from the bank is not a bad decision to start opening a business, but the borrower must have a thorough plan and choose the right business to prevent risks that could hinder paying off debts due to an unstable economic cycle. Everyone certainly wants their business to grow, but this is a matter of luck, at least people who borrow money from the bank must have a little spare money to pay off debts when their business is not running smoothly.

[batang_bitcoin]

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

And that's why they're are the real smart because they leverage the debt that they're taking for their business. Those that take debts but don't do anything with it but to buy their wants, they're not smart. They're spending their money for something that they're not be able to grow so, in the end all they have is a debt. Compared to these businessmen that uses loan, they have a business, they have profit and they're paid off with their debt later on.

[Roseline492]

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

That's true because getting a loan doesn't determine success but instead the knowledge and experience you have on that particular business is what will help you to utilize the loan very well and perhaps become rich, so that's why getting a loan is good but another thing is using it to establish yourself in such a way that there would be a positive difference in somebody's life, however just like you said knowledge plays a very vital role, so perhaps people should really asked themselves if truly they understand what business they are getting the loan for before borrowing it because there is a higher chance for the business to crash if the person doesn't really understand it very well.

Because I noticed that some persons may not really have passion to venture in some kind of business but the moment they realize that most of there friends are actually making a lot from there business they tend to venture into that particular business without having any idea about it, so we can imagine what will happen to that person because is already obvious that his chances of making it on that business is very slim, so actually having a good knowledge about a business is very crucial before deciding getting a loan.

[justdimin]

To be able to manage debt also requires intelligence because there are some people who decide to take loans when they need additional business and fail to develop their business because they cannot properly manage the loans they take, of course this will be a problem for themselves because of difficulties. in paying off their loans, what you say is very true, indeed not everyone can do the things you mentioned, of course expertise is needed in managing the loans they take.

That's true because getting a loan doesn't determine success but instead the knowledge and experience you have on that particular business is what will help you to utilize the loan very well and perhaps become rich, so that's why getting a loan is good but another thing is using it to establish yourself in such a way that there would be a positive difference in somebody's life, however just like you said knowledge plays a very vital role, so perhaps people should really asked themselves if truly they understand what business they are getting the loan for before borrowing it because there is a higher chance for the business to crash if the person doesn't really understand it very well.

Because I noticed that some persons may not really have passion to venture in some kind of business but the moment they realize that most of there friends are actually making a lot from there business they tend to venture into that particular business without having any idea about it, so we can imagine what will happen to that person because is already obvious that his chances of making it on that business is very slim, so actually having a good knowledge about a business is very crucial before deciding getting a loan.

I believe that it is not going to be just about debt, but more about making debt work for you. Lets assume that you get 100 dollars loan, and need to pay 120 dollars back, but you put that 100 dollars into work, and get 150 dollars back, then you made 30 dollars without spending a dime.

Remember, banks are giving you money to do whatever you want, if your loan is accepted, that means you are not spending your money at all, you are spending someone else's money to grow, and that is ALWAYS a better method. The problem is that the world is filled with poor people like me, who uses debt to be able to survive, and not for growing, we do not get debt to make more money, we get debt to just be able to survive until end of the month.

[coinerer]

Loans have now become a simple matter.  The more developed the country is, the more people are in debt because the percentage of credit card use is high in developed countries and credit card is a type of debt. yes I agree that all smart people use credit cards and using credit cards means borrowing. There are some countries where a person can purchase and enjoy luxury items based on credit card points score. If someone has a low credit card points score they will not be eligible to purchase them.  In those countries, the government is pushing people into debt.  So the smarter you are, the higher your loan amount will be

[angrybirdy]

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

Indeed, they are a smart type of person, they know how to properly manage their financials that's why they are able to circulate the money that came from debt for their business and such things because they already know the possible outcome and the amount that they will have even if they are paying interest. I believe that even if a person takes a loan, they can grow it and use it properly, especially if the main purpose of the loan is to use it for business or investments. It really depends on the person how good they are when it comes to budgeting and handling money.

[Reatim]

Indeed, they are a smart type of person, they know how to properly manage their financials that's why they are able to circulate the money that came from debt for their business and such things because they already know the possible outcome and the amount that they will have even if they are paying interest. I believe that even if a person takes a loan, they can grow it and use it properly, especially if the main purpose of the loan is to use it for business or investments. It really depends on the person how good they are when it comes to budgeting and handling money.

What makes me worried about getting a loan is no matter how “prepared” i am, business is still unpredictable and anything could happen.

I’m sure we all know just how bad it could be if ever your business fails with the money you took out from a loan. You would need to pay the loan without a profitable business so where will you be getting the money? It’s a headache.

[ndutndut]

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

Yes that's right. In essence, they are not only smart, but they have skills and mentality that other people don't have, so they dare to take risks by going into debt and by going into debt they can get more profits. It's actually a skill in managing finances and beach reading opportunities. BTW, only a few rich people start with debt, I mean the initial capital is debt.

Because most rich people are in debt because they have collateral and can hand over capital. Because the calculations are clear, but if people who are less well off are in debt and have no other income reserves, then if things happen beyond our means then they will automatically go bankrupt.

We need to remember that rich people are in debt because they already have 2 or 3 or even more to support their income, so that when someone goes bankrupt they don't immediately fall into poverty, there are still 1 or 2 other people who can help them survive. However, if your income is only 1 and you are still burdened with installments if something happens then Auto will go bankrupt. Because if you work hard the bank will be happy, but if you fail the bank will be happier because it will confiscate the property you mortgaged to the bank.

[dezoel]

Wealthy people love debt no doubt because they see investment opportunities all the time and are always ready to borrow to invest and utilize the opportunity that they have seen.it is not bad to borrow but what is very wrong is the purpose of which you borrowed the money for or if you used the money judiciously after borrowing it. talking about wealthy people their essence of borrowing is to add more funds to them through their returns on investment and the wealthy people are always very eager to borrow and invest for the future. but the poor people on the other hands only borrow to pay another debt or they borrow to feed their family and not to invest for the future.

Now we know on why the rich can remain rich and even get richer. Maybe some knows this already and in fact have done the same move already but if they fail, I think they only miss the learning part there. Rich people are well educated and have study the thing that they will venture.

This helps them to become risk-takers. I know this is crazy but borrowing money to pay for your other loan are I think a wise move because their previous loans can be on their deadline already and if they still can't pay it, something bad is going to happen with them. Besides, they may now change and will now find a proper way to pay their current loans.

[Fortify]

I spoken with my old friend he use to live in nyc around rich people he asked their business most of them said.
That it's debt they borrow money invest real estate buy to lease and sp500 and Even in crypto since many of them use llc options as company investors they not worry about
And they say markets always goes up
So many people just using the borrowed money nothing personal for them it's just game If they win they win If they lose then might be collapse but they are use to that after each crash wall street get bail out.
So a lot people are in high debt and they keep getting to make more debt a lot people using debt to invest.
The real estate prices not coming down so easy because there is a lot buy to lease deals.
And a lot gamblers are rich not smart just rich they. Was lucky because of good credit score.
A lot of markets are run by debt a lot investors using borrowed money not their own money
You guys tell that don't borrow to invest but that's not the case a lot people borrow money and invest and they not even worry about because they know markets will always bailed out and ATH after ATH always will be.
I mean the investors who are in debt are care Free they keep borrowing the funds and that's actually bullish and that's actually bring inflation

It depends how you are defining wealthy really, are we talking about people who are earning hundreds of thousands of dollars a year - that might struggle to maintain a high roller type lifestyle if they decided to leave their job? Those people will be borrowing a lot of money until they reach retirement and have to sustain decent jobs if they want to stay in the league of the rich. However there are other types of richer, like generational and the super rich who will have massive finance teams organizing their wealth in the most efficient manner and debt introduces risks at that level which they don't really need to take on. However in certain circumstances they may want to fund big acquisitions with specially geared vehicles that protect their assets, yet bank off their family name and get other people to take the major risks.

[batang_bitcoin]

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

Indeed, they are a smart type of person, they know how to properly manage their financials that's why they are able to circulate the money that came from debt for their business and such things because they already know the possible outcome and the amount that they will have even if they are paying interest. I believe that even if a person takes a loan, they can grow it and use it properly, especially if the main purpose of the loan is to use it for business or investments. It really depends on the person how good they are when it comes to budgeting and handling money.

As long as the purpose of the loan is followed and used properly, they are going to pay the loan and even grow with it. This is proven with what the real businessmen do.

They are still smart if they use debt to leverage and increase their wealth. They generate more and new money through that debt and they're also paying that debt plus interest through that. Not all people can do that because many are scared of getting into debt so, if they're genius and able to do that, then it concludes that they're also smart people. They won't make a business that's profitable and have a system if they are not smart but it can't be helped because they are.

Yes that's right. In essence, they are not only smart, but they have skills and mentality that other people don't have, so they dare to take risks by going into debt and by going into debt they can get more profits. It's actually a skill in managing finances and beach reading opportunities. BTW, only a few rich people start with debt, I mean the initial capital is debt.

Because most rich people are in debt because they have collateral and can hand over capital. Because the calculations are clear, but if people who are less well off are in debt and have no other income reserves, then if things happen beyond our means then they will automatically go bankrupt.

We need to remember that rich people are in debt because they already have 2 or 3 or even more to support their income, so that when someone goes bankrupt they don't immediately fall into poverty, there are still 1 or 2 other people who can help them survive. However, if your income is only 1 and you are still burdened with installments if something happens then Auto will go bankrupt. Because if you work hard the bank will be happy, but if you fail the bank will be happier because it will confiscate the property you mortgaged to the bank.

The rich are just doing this as if it's a daily activity to them. They know how to leverage but they don't overleverage. Those who overleverage with the use of debt are getting problems because they think that it's going to be the same results at most times but it's not.
It is true that the rich borrows money but they can pay off that debt with their other support cashflow and businesses and they don't just do it because they need money, they have money but they smart enough not to use their own.

[MissNonFall9]

Loans have now become a simple matter.  The more developed the country is, the more people are in debt because the percentage of credit card use is high in developed countries and credit card is a type of debt. yes I agree that all smart people use credit cards and using credit cards means borrowing. There are some countries where a person can purchase and enjoy luxury items based on credit card points score. If someone has a low credit card points score they will not be eligible to purchase them.  In those countries, the government is pushing people into debt.  So the smarter you are, the higher your loan amount will be

In fact as people become more modern they feel comfortable using other people's money even if they do not have money in their own pockets. And the banking system wants to use this opportunity to save their own interests. The snake does not die and the stick does not break. And that is the smartness that can exploit all opportunities. But is it really so?

[Casdinyard]

~snip~

That is literally what makes them smart, and kind of exemplifies the divide between the rich and the poor too, cause you can argue that they can only do this because they have a lot of shit they can put up as collateral should things go awry and they lose money on these loaned out business ventures. Regardless, the thing is when regular people take out a loan, they immediately think of the shit they can buy with it, whatever bills they can pay and how much it's going to support them for the next couple of days or weeks. This isn't their fault really, cause when average joes take out a loan they are always advised to make the most out of it, and are always reminded of the consequences of not being able to pay the loan, sometimes they are even discouraged to take out loans for businesses due to bad credit or because the banks simply don't give such amenities to regular dudes.

It's just how the world works man. fucking sucks but we have to deal with it.

[DubemIfedigbo001]

I spoken with my old friend he use to live in nyc around rich people he asked their business most of them said.
That it's debt they borrow money invest real estate buy to lease and sp500 and Even in crypto since many of them use llc options as company investors they not worry about
And they say markets always goes up
So many people just using the borrowed money nothing personal for them it's just game If they win they win If they lose then might be collapse but they are use to that after each crash wall street get bail out.
So a lot people are in high debt and they keep getting to make more debt a lot people using debt to invest.
The real estate prices not coming down so easy because there is a lot buy to lease deals.
And a lot gamblers are rich not smart just rich they. Was lucky because of good credit score.
A lot of markets are run by debt a lot investors using borrowed money not their own money
You guys tell that don't borrow to invest but that's not the case a lot people borrow money and invest and they not even worry about because they know markets will always bailed out and ATH after ATH always will be.
I mean the investors who are in debt are care Free they keep borrowing the funds and that's actually bullish and that's actually bring inflation
Also you in western financial world you don't have to pay fully your debt to increase your credit limit just keep paying few months and you could get more credit and you can invest more this money and If you are lucky you could make fast return pay back the loan and getting the bigger loan and more credit you really don't have to ask when banks see you play with money a lot they give phone call with offering credit to you more.
So until this huge borrowing and debt don't stop inflation not going down any time soon.
People who invest on markets they know more they borrow more higher the prices going the banks knows it too and when we look at the debt clock the debt growing bigger and bigger.
So a lot people are just recless they borrow care free and invest because a lot of them belive that markets going up always
All of this Will put the average worker Under bad situation when cant afford pay home rent neither mortgage and neither to own...because the bankers give a lot money really u don't have to pay even full amount you did borrow just pay some of it and you will receive phone call from the bankers ,hey we have good offer for you we can increase your credit limit
So you really don't have to be smart or genius just be brave and care Free and take the loan offers pay something and get more invest more borrow more and that's how a lot people do it a lot business is on debt huge debt If you Are in USA UK Europe au or Canada and you don't use that opportunity the easy credit then you miss good opportunity because those countries banking system is built the way to give you a lot easy credit even If you not paid complete funds you can get more and they really call you to take more credit.
So we live in the credit and debt economy and some people predict crash of this i don't think so because Banks not interested of collapse or value of money or lower inflation they don't care about they can keep doing this If inflation going too High well they do little rate hikes but they never stop it because they cant stop it anymore.
I think it's all clear now that in order to survive we have to keep borrowing to pay old loans from new loans
No political partie want to make that decision to let economy down and stop borrowing it will be hard decision not Biden not trump and not anyone others they will kick the can further on the road.
The all globe Will be in debt and i guess If it getting too much goverments just delete it and it all Will start again all over the new circle
There is clear message to people borrow reclessy and invest don't worry If it all get too much we delete your responsebility and start all over again.
No political leader will stop it they always borrow more and then they just give debt forgiveness so nothing valued it's all just the game those who borrow reclessly and gamble and invest will get rewarded for their actions of bad decions while the honest clear minded person hard working with good responseble mind will get punished by society so it all show's something to us nothing have no meaning just go and take get be greedy don't try act like you Are some person who try to live perfect way just go take it what you can don't worry too much because those who do this are rewarded by the society.
And Biden goverment is very good example of this nothing has no meaning and nothing has no value just take yours while you can nobody don't reward you If you act like normal person with hard working mind Biden goverment don't support this they support chaos just out of normal order living not just biden but UK Canada Europe moving to the same Direction.
Gone are those days when you get rewarded for your hard work and that you act with respondible mind and you do right things now our world moving to chaos of order when more miserble you are the better life you will have and those who don't gamble on the markets just working hard Will get less and less and they will be ones who pay high price of inflation.
That's why prices going up Banks borrow so much money that people can consume more than factories can produce If you as honest working person don't consume so much then someone who gamble with easy money Will consume 10 times more If you so that's why prices going up Because those who use easy money and line of credits they Will consume and buy things so much that demand is higher than supply.
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

Firstly, you need to learn how to format your posts so its readable. I believe this post has a lot of important points that's worth discussing, but sadly, I can't read through because  just seeing the post alone causes cognitive friction for me, so I'll react on the topic.

You need to understand that debt isn't a bad thing unless its being used for liabilities or to fund frivolity. Debts are good to expand an already existing business. You can expand, make more gains, pay your debts and make something tangible from it.
Such debts are called good debts cos they replicate themselves and give the person gains for his stress.  

Most big businesses you see around are operating on debts. This enables them to expand, incorporate more profitable ventures and keep getting bigger.

[trendcoin]

We are in a debt-based monetary system. Therefore, borrowing is one of the best ways to grow. Especially when we have the opportunity to get low-interest loans, we should definitely use it. However, I trust gold more than the stock market or cryptocurrencies in the coming period because the drums of the third world war are sounding these days. Actually, I wouldn't want to talk about money at a time like this, but we have to accept the facts of life. If some developments are inevitable, we have to look for ways to make the most of them...

[lepbagong]

Loans have now become a simple matter.  The more developed the country is, the more people are in debt because the percentage of credit card use is high in developed countries and credit card is a type of debt. yes I agree that all smart people use credit cards and using credit cards means borrowing. There are some countries where a person can purchase and enjoy luxury items based on credit card points score. If someone has a low credit card points score they will not be eligible to purchase them.  In those countries, the government is pushing people into debt.  So the smarter you are, the higher your loan amount will be

In fact as people become more modern they feel comfortable using other people's money even if they do not have money in their own pockets. And the banking system wants to use this opportunity to save their own interests. The snake does not die and the stick does not break. And that is the smartness that can exploit all opportunities. But is it really so?

It is not unusual anymore that there is a situation where is all -round technology, the use of credit cards is very advanced and massively used. They are right, as you say it's better to use other parties' money than your own. But if they are wise, then they will pay in full all the loans that have been made so as not to be exposed to interest, but those who are not wise to use them will actually be increasingly wrapped in the debt that continues to grow.
If smart and intelligent, he will use the facility for purposes that are indeed useful and not actually destroy his life.

[slapper]

We are in a debt-based monetary system. Therefore, borrowing is one of the best ways to grow. Especially when we have the opportunity to get low-interest loans, we should definitely use it. However, I trust gold more than the stock market or cryptocurrencies in the coming period because the drums of the third world war are sounding these days. Actually, I wouldn't want to talk about money at a time like this, but we have to accept the facts of life. If some developments are inevitable, we have to look for ways to make the most of them...

We're all used to this idea of borrowing to grow, right? In this debt-driven society we live in, very typical. On a finite world, though, how the hell are we supposed to continue growing forever? Thinking about it makes it kind of ridiculous. What if we borrowed to transform instead? Such as investing that money on sustainable living and wealth-closing technology. It's an other perspective on growth that might be, you know, sustainable

Now, gold. Really, I understand. Gold has always been that safety net, and war makes us all anxious. But is that the best course of action or is it merely psychological? Something we cling to because it's familiar? But Bitcoin is a whole other matter. It's about welcoming change as much as it is about making money. Future-proofing yourself against the very chaos we're all worried about