EASY MONEY - DEBT
posted in debt |
There is this piece of information I read about lending and debt. In order to be a RICH DAD and learn about money, we have to learn how money works on a global level, with respect to nation’s economy and on the personal level too.
This is a time where big economies are on a lending spree and developing nations are giving a respectable growth trends. Today a country doesn’t get rich in old ways by getting into wars and attacking weaker nations, they just buy another country’s wealth and debt.
One of the ways rich countries like the United States gain an economic advantage over weaker countries is by lending them money on the condition that the weaker country buys the rich country’s products. Hot money, as it is sometimes called, enters the poorer economy and the economy booms, but then it later collapses when the country can’t repay its debt.
On a more personal scale, many individuals fall prey to the lure of easy credit with credit cards, school loans, and mortgage debt. Once the lenders have you hooked on debt, they’re assured of a steady stream of income for years, hoping you never pay it off. And if you default, they may force you into liquidating your assets. Banks and other financial institutes are more than happy to give you easy money.
Today, private lenders such as hedge funds are lending trillions of dollars to businesses at very attractive rates. It can mean both good things and bad things. One benefit is that all this hot money floating around all over the world gives people a sense of prosperity. What’s bad is that if the bubble of debt bursts, which many insiders believe it will , the result could be a global recession and possibly even a depression. This excessive debt has kept the world economy pretty stable through some challenging times, including Y2K, 9/11, high oil prices, wars and so on.
Money Doesn’t Make the Man
Kiyosaki says that his rich dad often reminded him that money doesn’t make a person who he or she is. Applying this logic, money also doesn’t make a person greedy. Rich dad’s point was that money has the power only to reveal a person’s true nature.
For example, if a person is a fool with money, more money may turn the fool into a financial idiot. We’ve all heard stories of lottery winners, rock stars, heirs and heiresses, and professional athletes becoming millionaire morons who wake up rich but are broke by nightfall. I recall the case of Michael Jackson who has made millions of dollars but still he is in a lot of debt .He still owns a lot of label rights and big assets but losing all that money and getting into debt is not money wise.
Generous people can become more generous as they become richer, giving away vast fortunes to worthwhile causes as Bill Gates and Warren Buffett are doing. And many people, upon achieving financial freedom, use their freedom to dedicate their lives to what they believe to be their spiritual calling. That freedom is why I teach and encourage people to acquire wealth.
Financial education is very important not just to make big money and be financially free but to be able to get a comfortable life where a person is able to bring out the best in him.
Learn from Robert Kiyosaki and other world’s best gurus…..on your way to success and financial freedom, inspired…
Your partner in success…
Gagan.
