A: I make no excuses or apologies for changing my mind. The world around me changes, for one thing, but also I am continuously learning. I have never finished my education and probably never will….
spending beyond income means borrowing, and all of economic history proves that too much borrowing is the core of economic disasters and chaos.
But there is a tendency — as I’ve suggested in answering all your questions — for people to expect the status quo either to last indefinitely or to provide advance signals for shifting strategies. The world does not work like that. Surprise and shock are endemic to the system, and people should always arrange their affairs to that they will survive such events. They will end up richer that way than [by] focusing all the time on getting rich.
Savings gives you options and flexibility, the ability to wait and the opportunity to pounce. It gives you time to think.
if you have flexibility, you have the time to wait for no-brainer opportunities to fall in your lap. This is a hidden return on your savings.
Having more control over your time and options is becoming one of the most valuable currencies in the world.
Understanding the impact of debt…
But let’s see how this debt world works from the perspective of equality. While rich people borrow to invest and this investment generates profits and income, poor people borrow to consume. Once you borrow to consume, you are in trouble because there is no stream of income accruing from those borrowings. There are simply repayments. These repayments don’t add to your income but detract from your income.
Definitely need more articles which explain the impact of financial decisions and chasing the consuption using credit.