Debt - for most of people, it is always related to house loan, car loan, credit card or school loan. Yet, most of us never realize, it is the utilization of debt that make the different between rich to middle class.
Debt is like a loaded gun. It can be used or "AB"used. Thus, it must be treated respectably. The idea of old time classic thinker about become rich is the famous quote we often listen from our parent, grandparent :"study hard, get a high paid job, save money, get out of debt and live frugally". Live below your mean? Why should anyone believe that? Why should we work hard for the rest of our life, yet unable to enjoy life? Isn't it sound insane?
One of the answer of this question is the usage of debt. There is a good debt and a bad debt. Good debt make you rich and bad debt make you poor. The typical bad debt are such as liabilities and glitter luxury stuff we bought by credit ie car(s), expensive vacation, beech house, boat and on and on. It take money out of your pocket every months.
Good debt is the debt that will put money into your pocket. The best example in this case is investing on real estate by 90% of bank money. The investment by utilizing debt will generate not only monthly income of rental, but it also provide other advantages such as tax reduction, depreciation and appreciation which ultimately increase your personal wealth if you know what you are doing.
It best to illustrate how powerful debt will make the different is by asking yourself the question: "how long it is take for you to save a million dollar (any currency), and how long it is take for you to loan a million dollar?" and "who you has to be and what you need to know for you to go to the banker to ask for a million dollar loan, and has him/her to approve your loan by issue a paper for you to sign in 30 minutes?". Well, this is not a advertisement to promote getting into debt and spend all you can have. It is an alternative idea for you all to think about it. The idea might shake your core believe, but unless we are shaken, it will take even more difficult for us to change. To change for betterment.
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