I will explain in a simple way for some of you to understand how to use other people's money. 1) I previously created a system. I allowed other people to trade it. After paying some money to the website that advertised my system, I still made over $ 10,000 from subscribers alone. This does not include any profits the system made itself. 2) I currently do IT work, the company that I currently work for has decided to previously pay me to take some certification tests. So I am using other people's money to learn a new skill set. This is all done during normal working hours. 3) Trading itself allows you to use leverage when you trade futures and Forex. This leverage allows you to make money off of small movements price during small periods of time. I would actually call this leverage other people's money since you don't have to use your own money non leverage to gain profits.
... Assuming life always goes perfectly as planned, no incidents, no sickness, no market meltdown, no flash crashes. But life never does go perfectly as planned. And that is when all those shit ideas about debt and loans and leverage fall apart like a house if cards.
I have nothing against using borrowed money to finance my lifestyle. However after reading Rich Dad years ago,(1997) I made it a rule only to borrow to buy assets that appreciated or at least gave me the opportunity to write off the interest. I have owned my own home since I had my first job. Why pay someone else's mortgage? If I wanted to buy a car or some other toy I would pay cash then borrow to buy investments. I am aware that leverage is a two edged sword. If you can make double then you also can lose double. That's where risk control comes in. Always have an exit strategy.
This only works (until one hits a snag in life) because of the unprecedented boom decades and cheap money. The Fed has effectively taken volatility out of the system in exchange for stoking years and years of cheap money flowing into poor investments. Without the Fed the price of money would be a manifold and property prices would be nowhere near where they are. Assuming this continues forever is a grave mistake.
I've hit the snags. Like I learned that community property means that you get to keep 50% of everything your wife doesn't want. I've seen mortgage rate's in the teens (1980ish). I've dug myself out of some pretty deep holes, all with the help of OPM. I guess I should thank the Fed, after all they are there so that Rich can keep their money.
There is huge difference between "rich" and everyone else. One must think way beyond "outside the box", think of yourself as huge corporation and within smaller corp's. Plus, change your 401k into LLC.
Man you have achieved the Happiness! and the Inner peace of Mind!. That's what all about. You have won at Life! So ignore other things.
My vice is that I get sucked into debates with those who don't care about the truth or ethical values and I also have very little patience with stupidity. Can't ever win against either group.
No. Your vice is that you will not engage a discussion with someone who calls out BS, and you find it distasteful. You will never win when you do not learn to appreciate the humor when it presents itself.
The followers of (the liar and scam artist) Kiyosaki pretty much all got hammered when real estate crashed in '07/'08. He and his racket sell a ton of books and EXPENSIVE courses and coaching, though. Pretty funny that his business had to declare bankruptcy.