I'm hearing guys post that debt can be a good thing under certain situations.
I disagree.
Debt is a siren song, designed to trick you into making really bad decisions and bankrupting your future.
Imagine a casino. The casino rakes in millions of dollars in cold, hard cash every evening. You probably understand how it does that -- boomers who are too stupid to realize that they can never win the jackpot. But no, YOU'RE the smart one, YOU know how to beat the system. So you show up every night with a hundred bucks in your pocket, and you end up going home with barely the shirt on your back.
What happened?
You forgot the ONE RULE of casinos: THE HOUSE ALWAYS WINS.
THAT IS HOW BANKS WORK TOO. The BANK **ALWAYS WINS**. If you make money, they make money. If you lose money, **they make even more money.** If times are tough for you, **they make even more money.**
Banks NEVER want to see you succeed. Quite the opposite. They are gambling that you WON'T succeed. They win bigger when you lose!
If you really, really need money, then there are ways of getting money WITHOUT GOING INTO DEBT. Let me share a few examples:
1. ASK FOR FREE MONEY. Go to your friends and family, and tell them what you intend to do with the money, and ask them for it. You might be surprised how often they will just give it to you for a song and a prayer. Go to your customers and ask them for free money too. You'll be surprised how loyal customers respond to such strange requests!
2. ASK FOR AN INTEREST-FREE LOAN. Real friends and family will almost always be willing to give you and interest free loan. Sometimes they will borrow against their 401k and just ask you to cover the interest they'd have to pay -- to themselves. Sometimes they won't even ask for that, because they know it is their own money.
3. ASK FOR AN INVESTMENT. And investment is different than a loan because the investor ONLY wins when you win big. You have to be careful with investment because you are going to have to sign away part of your business to them, so don't be stupid about this. Never sell more than 51% of your business, unless you want to get out of the business.
4. ASK FOR MONEY UP FRONT. Oftentimes, general contractors shoulder the burden of construction until the project is finished, so people expect this more often than not. But don't be afraid to say something like, "I need some up front cash to get started so I can pay my employees and get materials." If you need it, you need it. Don't be afraid to ask for it.
We have been programmed to think that the ONLY way to get money is to walk into a bank and beg for a decent interest rate. NONSENSE! We have also been deceived into thinking that we can somehow gamble our future away and win. It doesn't work!
Let me explain the fundamental principle behind interest bearing loans: Whether it is sunny or rainy, Sunday or Monday, summer or winter, whether you broke your leg or you are in good health, interest accumulates. You might think you can beat the odds, but you can't. Eventually, something is going to happen, and when you realize that your castle is really a house of cards because it relies on loans -- you see what can happen.
Dave Ramsey has a wonderful story from his life. He was flipping houses like a madman, and making money hand over fist. However, he needed short-term loans to buy houses and to get them fixed. Yes, he was making good money on top of the loans with interest, but one day the bank called him up and say "Pay back the loans right now." When that happened, his business disappeared. He could no longer buy houses and get materials to fix them and flip them. Without banks funding his venture, he had nothing.
Instead, you MUST build up wealth the old fashioned way. SPEND LESS THAN YOU EARN AND INVEST WISELY. Buy things with CASH, not CREDIT. Watch carefully how money comes in and goes out, and if you realize that you will be short of cash -- SOLVE THAT FIRST.
Do NOT get involved with loans and debt and interest rates. Yes, SOME kinds of loans make a lot of sense, like real estate, but even then -- you're playing with fire!
I disagree.
Debt is a siren song, designed to trick you into making really bad decisions and bankrupting your future.
Imagine a casino. The casino rakes in millions of dollars in cold, hard cash every evening. You probably understand how it does that -- boomers who are too stupid to realize that they can never win the jackpot. But no, YOU'RE the smart one, YOU know how to beat the system. So you show up every night with a hundred bucks in your pocket, and you end up going home with barely the shirt on your back.
What happened?
You forgot the ONE RULE of casinos: THE HOUSE ALWAYS WINS.
THAT IS HOW BANKS WORK TOO. The BANK **ALWAYS WINS**. If you make money, they make money. If you lose money, **they make even more money.** If times are tough for you, **they make even more money.**
Banks NEVER want to see you succeed. Quite the opposite. They are gambling that you WON'T succeed. They win bigger when you lose!
If you really, really need money, then there are ways of getting money WITHOUT GOING INTO DEBT. Let me share a few examples:
1. ASK FOR FREE MONEY. Go to your friends and family, and tell them what you intend to do with the money, and ask them for it. You might be surprised how often they will just give it to you for a song and a prayer. Go to your customers and ask them for free money too. You'll be surprised how loyal customers respond to such strange requests!
2. ASK FOR AN INTEREST-FREE LOAN. Real friends and family will almost always be willing to give you and interest free loan. Sometimes they will borrow against their 401k and just ask you to cover the interest they'd have to pay -- to themselves. Sometimes they won't even ask for that, because they know it is their own money.
3. ASK FOR AN INVESTMENT. And investment is different than a loan because the investor ONLY wins when you win big. You have to be careful with investment because you are going to have to sign away part of your business to them, so don't be stupid about this. Never sell more than 51% of your business, unless you want to get out of the business.
4. ASK FOR MONEY UP FRONT. Oftentimes, general contractors shoulder the burden of construction until the project is finished, so people expect this more often than not. But don't be afraid to say something like, "I need some up front cash to get started so I can pay my employees and get materials." If you need it, you need it. Don't be afraid to ask for it.
We have been programmed to think that the ONLY way to get money is to walk into a bank and beg for a decent interest rate. NONSENSE! We have also been deceived into thinking that we can somehow gamble our future away and win. It doesn't work!
Let me explain the fundamental principle behind interest bearing loans: Whether it is sunny or rainy, Sunday or Monday, summer or winter, whether you broke your leg or you are in good health, interest accumulates. You might think you can beat the odds, but you can't. Eventually, something is going to happen, and when you realize that your castle is really a house of cards because it relies on loans -- you see what can happen.
Dave Ramsey has a wonderful story from his life. He was flipping houses like a madman, and making money hand over fist. However, he needed short-term loans to buy houses and to get them fixed. Yes, he was making good money on top of the loans with interest, but one day the bank called him up and say "Pay back the loans right now." When that happened, his business disappeared. He could no longer buy houses and get materials to fix them and flip them. Without banks funding his venture, he had nothing.
Instead, you MUST build up wealth the old fashioned way. SPEND LESS THAN YOU EARN AND INVEST WISELY. Buy things with CASH, not CREDIT. Watch carefully how money comes in and goes out, and if you realize that you will be short of cash -- SOLVE THAT FIRST.
Do NOT get involved with loans and debt and interest rates. Yes, SOME kinds of loans make a lot of sense, like real estate, but even then -- you're playing with fire!
Before, you would be correct. With a finite specie currency the value of the currency goes up over time. This means if I take out 100k debt today, that 100k debt is worth more in 10 years. THIS IS WHY USURY WAS BANNED IN ALL OF CHRISTENDOM. IT WASNT NECESSARY TO PROFIT. THEY WERE DOUBLE CHARGING FROM GREED. This is very important to understand. This worked for a LONG time. But what happens in this system is that your debt GROWS the longer you have it, the harder it is to pay off. That harms the people in debt(as it should as a strong deterrent to debt accrual).
Well, the jew bankers LIKE debt, and the powers that be were in it. So we're the farmers from annual "agriculture loans" they would take out. So they sold them the idea of a fiat currency "greenbacks". With a fiat currency the money would INFLATE instead of DEFLATE, making your debt worth LESS in the future.
If I take 100k worth of debt out today, because of inflation, in ten years my debt is WORTH LESS because 100k is WORTH LESS. So the debt is reduced naturally. This means the smartest idea in the current fucked system is to be in as much debt as possible as early as possible to accrue real asset to profit from. Because every day you don't is a day that debt could've reduced through inflation and a day that the value of those real assets increases.
You'll recover borrowing ability in like 2-4 years.
If you're *sure* that your country will collapse in the next few years, borrowing money to buy guns in the now is a good idea.
Generally you're right. I have a friend who tried this when he was young and he's basically trapped in poverty because, if he makes anything, they'll take it.
And still the interest accrues...
That's the problem. You can never be sure. During the cold war, there were a lot of people building fallout shelters and stocking up supplies, because they were sure that nuclear Armageddon is imminent. In the late 70's / early 80's, there was a general feeling that a collapse is going to happen very soon. Being a doomer is usually not a good strategy and it's wise to take a break if you are sliding down into severe doomerism.
You *may* win if you own the car for 10+ years.
Likely, that won't happen.
Real estate *can* be a good idea, if, as you said, you are really careful about it. Don't expect that you are going to be employed for the next 30 years and getting raises each year!
>Don't expect that you are going to be employed for the next 30 years and getting raises each year!
This is a misconception. Do you realize what 30 years of inflationary policy does to money? Also, many people either sell before even paying off the mortgage or they pay off their mortgage early. I did both.
Buying real estate with a mortgage may be a good idea if all of these apply:
- You can afford it (not just barely qualifying)
- You have a good financial reserve to get you through bad times
- Monthly cost minus principal are less than equivalent rent.
- The home is located away from niggers
If you trade houses, and all too often I see people doing this, they leave their 30-year mortgage that is now at 20 years left, and get a new 30-year mortgage when there is no way they will be working (at their current salary) in 30 years. You should be paying that debt down over time, not transferring the debt of home ownership to your future self, knowing full well that your future self might be disabled, elderly, or both.
A good goal with regards to debt is to pay off the home as soon as you can. Obviously, other loans should be paid off first, but take the snowball of all that interest you are no longer paying and put it into your home loan. Even increase your home payments by 50% can significantly reduce the total amount of interest you owe on the home, and bring you closer to becoming debt-free by years and years.
Don't kid yourself -- you don't really own your home until you have it paid off!
If you really want to doom technically nobody ever owns their homes because of property tax. To be fair I'm not even strictly against property tax, it's just the way it works right now is very jewish.
It sounds like you figured out how to count cards.
The problem with this strategy is that if sometime between now and when inflation actually hits you DON'T get a rapid influx of cash (and guess who DOESN'T get cash in inflationary periods!) you WON'T be able to pay off the debt. Your property value WILL fall when interest rates go up, and the bank will demand you settle the debt, forcing you to sell your property at below market value.
If you were a jew with connections to the Fed, you'd do just fine with this strategy. But since you AREN'T, YOU WILL LOSE!
This lead to all sorts of other problems with deflation. Rich people get richer and richer, and poor people can't even find two pennies to rub together.
It is a fact that when there was a massive influx of silver into the Spanish Empire, they all got rich together.