Re: A lot wealthy people not smart they just use debt

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.

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.

Bro, things work differently around the world. The traditions, laws, and opportunities in the east may not be the same in the west and the same in the north, etc.The principle of one man cannot work for everyone. Debt is not favorable for everyone.

Debts (loaned money) are also used for other important stuffs, but apart from assets, there are other life issues that make people take out loans, which is very important stuff for them too.

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.

I have used credit properly since 1986.

I have spent over 1,000,000 on credit cards I have paid under 100 or 200 usd in fees to do that. I have received over 25,000 in rebates.

I am not rich but proper use of credit has allowed me to live better for over 30 years.

I must say that you are financially smart to have done that, sir. You actually did put a good use to the credit and archive a good living through it. If maybe there were about 10 people or more who did the same thing, I bet it might not really work out perfectly for all of them.

Last year, I ran an absolute loss for a new business venture I tried out. After evaluating the risk that was involved, the risk was not really as much as it turned out to be. The worst part of what happened was that I took out a loan to engage in that business, and it turned out that the business was not profitable, and I couldn't even get back all my capital. Because of that incident, I had a tough time repaying my debt since things didn't go as planned.