One of the most powerful lessons I learned from the real estate collapse of 2007 was the evils of debt. I realized then a lesson that I’ll never have to learn again. The lesson is simple, debt is not a tool to help you accomplish much it is infact the reason why you will not be successful. Patience you see is in fact a virtue but like good advise you cannot benefit from it if you don’t use it. Once I was done having my finances completely blown apart by the downturn I made a vow to never again accept debt or agree to pay interests and fees for my money.
They say that banks only lend money to people that don’t need it. Isn’t it funny that people are under the impression that banks should be lending money to people that need it. Well, that shows a fundamental misunderstanding about how banks make their money. People use to understand loan sharks and knew to avoid them because of their terms that would surely result in your own destruction. You see banks and loan sharks want a cut of the money that you are making. Its simple.
What is the difference? Student loans, credit cards, or a mortgage or a car loan? The best advice I ever was given about money is as simple as this if you can’t afford it don’t buy it. There is no sense in selling your self to owe someone over something that you WANT right now. Chances are you will change your mind soon and the fact is you don’t need it if you can’t buy it, cash.
In the 90′s rappers took over the MTV with their luxurious lifestyles. Lamborghini’s, Ferrari’s, Bentley’s and Rolls Royces all with rappers showing off their gold teeth. How did they pull that off? Well they borrowed money from their album which usually hasn’t even been released at the time of the video so they can make the impression that they are rich and famous. It seems to work but how many of these 90′s rappers are still wealthy today?
In order to loose big you must bet big. I lost big money in real estate just like lots of people because I thought the market would continue to appreciate or at least remain stable. I was wrong but had I not purchased property with loans it would not have hurt me. The reason why I eventually lost was the fact that I had taken on debt.
You see the same thing with these trucking companies and their fancy lease to own deals. Listen drivers, if it sounds too good to be true it is leave it alone and earn your money for keeps the long way. Thanks for reading what do you think?