Jovialcho:

Learn from guru expert ; good .

zbear:

scang:

So if you have a primary job where you work for someone, then grow your other streams of income so that it can replace or more than replace that primary job.

You can continue to work for that someone if you want to, but in the event that you lose your job, then you are really affected since you have other streams that can replace the primary job income.

This sounds familiar. Did you get this from Rich Dad, Poor Dad?

scang:

So if you have a primary job where you work for someone, then grow your other streams of income so that it can replace or more than replace that primary job.

You can continue to work for that someone if you want to, but in the event that you lose your job, then you are really affected since you have other streams that can replace the primary job income.

KSP:

The need to work (for salary) is optional and could be part time or voluteer.... basically is just to kill time....

3Boys:

MadScientist:

Thanks for the awesome compliments!

Actually... history tells us all about debt... and being debt free... if only we learnt enough from history. (This is a good lesson for those whose kids complain about learning history in school... it may seem irrelevant to them at this point)

The (self-sufficient) Roman empire imploded really with usury banking system (by the Greeks) which started by imprisoning the farmers with loans (that they did not need) and then forcing them to go into the city to find jobs to pay of the loans/debts. This made Rome import food, which basically inflated prices. The usury banking system continued to spread and loans were disbursed all over Rome... debt levels soared, and so did inflation. It got so bad that rich Romans left the city and the not-so-rich had to bear with spiralling inflation. As a result, many did not have children due to rising cost (fertility rate dropped drastically). The manpower problem got so bad that when the Romans wanted to build the Roman wall, they managed to complete 1/8th of it only! This paved an easy way for foreigners (the Vikings) to come in and take over / destroy the Roman empire.

This is what debt can do to an empire... what more can it do to an individual?

Hi MadScientist,
thanks so much for your insightful posts, you are clearly well read in this arena and your advice makes a lot of sense.

However, if I may make a slightly contrarian stand from an amateur perspective. Is it possible that not all debt is bad, even significant amounts of it? I am speaking of situations where the debt is well collaterised and can be paid up quickly when interest rates move upwards? Many major corporations do take on some amounts of debt, even if they were cash rich. Needless, to say, in this low interest rate environment, I am biased towards taking on some debt to finance other opportunities.

I do completely agree about learning history! It may be cliched to quote George Santayana: \"Those who cannot remember the past are condemned to repeat it.\", but it is so true. The lack of depth in the political debates that go on in Singapore, I feel, stem from a lack of good schooling in history.

MadScientist:

Thanks for the awesome compliments!

Actually... history tells us all about debt... and being debt free... if only we learnt enough from history. (This is a good lesson for those whose kids complain about learning history in school... it may seem irrelevant to them at this point)

The (self-sufficient) Roman empire imploded really with usury banking system (by the Greeks) which started by imprisoning the farmers with loans (that they did not need) and then forcing them to go into the city to find jobs to pay of the loans/debts. This made Rome import food, which basically inflated prices. The usury banking system continued to spread and loans were disbursed all over Rome... debt levels soared, and so did inflation. It got so bad that rich Romans left the city and the not-so-rich had to bear with spiralling inflation. As a result, many did not have children due to rising cost (fertility rate dropped drastically). The manpower problem got so bad that when the Romans wanted to build the Roman wall, they managed to complete 1/8th of it only! This paved an easy way for foreigners (the Vikings) to come in and take over / destroy the Roman empire.

This is what debt can do to an empire... what more can it do to an individual?

1amber:

Financial freedom means not having to set the alarm clock to get up and drag your feet to work the next day.

Edureach:

UncleLim:

Funz, MadScientist and LOLMum, well done!


Loans are indeed a form of imprisonment that stops you from doing what you want to do. But banks will blatantly lie and say that easy credit gives you freedom. Sadly, many people believe in spending what they have yet to earn.

I remember long ago when I was a spring chicken working in an MNC. A colleague was telling us about her shopping spree. Her credit card bill was in the tens of thousands of dollars. As entry level employees, we were shocked and wondered how she was going to pay it all up. Turns out she has already calculated her estimated year-end bonus and spent it in advance. And it was only September!

Thank you for your contributions also Funz and LOLMum on this thread. Generally agreed with your statement also can add that for savy investors, there is such a thing call good debts.

Also, Madscientist is definately a well-informed and highly trained trader with indept knowledge of microeconomics as seen from his posts.

Kapoh a bit here as taken time off from watching how US market reacts tonight.

My personal take regarding this issue is that as long as one needs not kowtow to others for favors and is capable of generating income consistently to maintain his/her desired style of living is considered as financially independent.