Understanding Debt

"I owe , I owe , its off to work I go" is not funny its tragic and even more disturbing is the fact that this tragedy is gaining momentum day by day. Buying anything on debt that drops in value is outright stupid. You not only pay more then its actual worth but also give to the other party(the financier) power over your liberty. You chop off your take home income by committing little monthly installments and soon get on the debt treadmill that just never ends.

Caution: Pay off your credit card , personal loans and car loans in full even before you think of saving . Consolidate your loan, make lifestyle sacrifices and get on to it. With persistence and organised approach you may achieve it sooner then you think.

Bad Debt: Loan to buy or spend something that drops in value once the transaction is complete and right from mobile phones to music systems, from cars to jewelery, from holidays to gifts to shopping, absolutely nothing to be bought on credit if you cannot pay the amount in full and not have to pay any interest charges. You have to stop your cashflow going out before you can start accumulating and achieve growth with your kitty.
Please don't get into Bad Debt anymore.

Good Debt: Loan taken to buy things that go up in value, thus providing you the leverage to buy things that you may not afford on your own. But when the value goes up you get to keep the upside and just pay off your loan commitment. Example Start up Loan for business, Commercial property loan, Home Loan etc. Most recommended for wealth creation However serviceability of loan must be factored before accessing The loan.

To start .....you have to stop

So you have made up your mind. You want to become wealthy. Never have to look at any price tag again and you want to live life king size. Fantastic!

On the road to riches( and we will shortly get on it) there are things you come across which may test your commitment, Becoming rich is simple but not easy. That is why I say, that to start the process you have to stop. Take a step back and think about it. You are now going to undertake a journey into wealth, if the world is to be divided into two you are now going to enter the better part.

En route would be a lot of distractions, excuses, and utmost impulsiveness to surrender the dream and opt for the instant gratification, and thats where your thought and commitment from beginning will help you shape your outlook . Do not settle for less then what you deserve. I will let you chase your dream , encourage you support you mentor you.... for if you don't chase your dreams you are nothing more then a vegetable.

Its a mind game !

Congratulations. If you are looking at practical advises on becoming wealthy, you have landed at the right page. .... Read on because by the time you end up this reading session you may well be on the path of your dreams to become wealthy. No, this blog does not promise to make you a billionaire over night but will certainly challenge your thoughts . It will encourage you to change the angle your mind generally works at but most importantly it will help you to understand what being wealthy is like. How great does it fee? Someone said "I Have been rich and I have been poor... trust me rich is better"

Being rich has a science to it, its also an art as not every millionaire in my opinion is wealthy. To start with let me tell you one thing, If you think you can be rich or you think you cant, you are right in both cases because becoming rich is a mind game . This blog cuts the crap out and is very in the face, direct but hey thats how the world works too. Good luck