Banking system is made to make the Rich Richer and Poor Poorer. Here's How...
EMI, Cashbacks, Rewards, BNPL, etc are all the little dopamine kickers for someone to have the access to a buying power which they don't have at that particular time.
This is the major factor for consumption and good for the economy too but as cyclical it goes the personal...
This is the major factor for consumption and good for the economy too but as cyclical it goes the personal...
Drawbacks have to be accounted for in your finance books. The Rich have the acess to all these and they use it to create more wealth. Example below
You have 20L worth of BlueChips or ETF's and that is all your savings in it too. You earn 24L per annum and you want to buy a home which is fairly underpriced and you can utilise it while the asset will grow acc. to your research.....
2 options-
A- Sell your stocks and get a Home loan based on Salary. And keep on paying the EMIs
B- Pledge your stock to the bank draw a loan on ver low interest rates and also finance the home with current salary
A- Sell your stocks and get a Home loan based on Salary. And keep on paying the EMIs
B- Pledge your stock to the bank draw a loan on ver low interest rates and also finance the home with current salary
Now many people are scared of Debt but fail to realise that if you have assets which surpass the Rate of Interest through another venture it plays in your favour. You can hedge your bets if you can to avoid liquidation. And keep the cash and asset both at once
Instead of doing BNPL (Buy Now Pay later) go for a credit card, this wil help build you a credit score at CIBIL and allow you to get leverage when needed. And remember The credit Card companies don't like good people you pay back as they use they want you to not....
Well so use it in your favour. Pay a day or two before the date and get the rewards while being on their list of a soon to default. This way you might get a few more perks and lures which you can use later. This is how shady the business is.
Leverage is a double edged sword and I know it the best loosing shit ton of money when being over levered in the market the same goes in off market transactions as well. Always have cash to back up and i don't mean pure liquidity but something which you can liquidise or pledge.
The Rich use the Banks by pledging their assets and taking loans on them and continuing to write them off in their books while running on free cash of the people and the State.
Make sure to Build assets as the more you have the easier it is to make 10X more with 1/2 the work
Make sure to Build assets as the more you have the easier it is to make 10X more with 1/2 the work
Be greedy
Be selfish
Run fast and break things
It's capitalism and no one is here to care for you
Go out and capitalise
Be selfish
Run fast and break things
It's capitalism and no one is here to care for you
Go out and capitalise
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