Do scroll down and look at my previous post Good obligations versus Debt – especially the comments web page if you have never read it previously. You would get the framework and perspective for this post. The majority of us will belong to this group. We will say if we buy this, debt is good.
Conventional wisdom is that it’s “good” personal debt if we take up an educatonal loan for our MBA . Didn’t they say the return on investment for education is the best! You start with a financial without the short second you step out of school. And with no working job, how are you going to pay the rent? Conventional wisdom will also say it’s folly to take up a car loan since the second you drive the new car from the showroom, it’s value drops significantly. Your vehicle loan will be worth more than your car’s resale value!
Tell that to people wise car purchasers who bravely got out car finance and bought when COE prices were at their lows during early 2009. Today Fast forward to. And we wonder why we like to buy high; sell low for our stocks! Readers here may choose to relook within my earlier post’s comment page and find out why I trust Coconut that during bad times, debts is good!
How to classify a personal debt is good or bad predicated on that purchased? For those who believe all bills are bad, I will not ask you how you purchased your first home or car. I simply ask whether you bring credit cards? In the event that you truely walk your own talk, you would only carry a debit card – not a credit card.
Otherwise, I will treat you as owned by the “This will depend” college. I don’t pay attention to what you say; I pay attention to what you do. Within my jouney towards my very own financial freedom route, Those poeple was researched by me whose networth were much bigger than me and financially free themselves. One interesting simple truth is that all of them have used credit/debt/leverage or other’s money (OPM) throughout their journey!
- The goals divided into small measurable time-bound goals
- The cumulative amount of each type of temporary difference
- Coffee shops, pubs, and microbreweries
- IRC ยง752: Treatment of certain relationship liabilities
- $125,000 for wedded filing individually
- Financing Ratios, and
- Retirement Income Strategies
- 11Register for commercial taxes
I also pointed out that street-smart and savvy businessmen will secure credit lines with banks when their business are successful and cash flow positive! That’s how you can secure the best rates and credit limit – when its not necessary loans from banking institutions! Similarly, private banks are jumping over themselves to provide favourable credit facilities to high net worthy of individuals – at rates of interest mere mortal like me can’t get. Who said life is fair? And proactive traders with private properties, they already have got their home equity loans pre-approved by their banking institutions – just looking forward to the stock or property marketplaces to crash – whichever comes first.
It’s good to know that you have access to ready funds when opportunity present itself. Luck is preparation meeting opportunity. I participate in your debt is good college. Since I am the HDB heartlander class of speculator, I have more limited ways to secure credit. I only have the margin accounts, CFD, and futures route. Big fish got big seafood methods; small seafood got small seafood methods. There’s no right or wrong answer. Just be honest with yourself. Walk your own talk.