Business lesson 45

“Why shouldn’t I borrow to buy something that depreciates?”

Well you should not barrow at all.  Buying something that depreciates in value is a consumers goods.  That is clothes, food, electronics, and cars.  The longer you have any of these items the cheaper they will get, and that no one will buy it at all.  If you do want to buy something that is going to help you payoff the debt, buy something like a water jet cutter.  If you don’t know what a water jet cuter is, click HERE.

You can sale the items you make to help you pay the debt.  There is a video that you can watch which is on how this woman payed off over $22,000 of credit card debt.

To avoid debt, don’t use credit cards.  Just to tell you something, debt cards are supposed to be the money you borrowed and credit cards was the money you made.  If you do go into debt, pay it off as soon as possible.  The banks swapped the use of debt and credit cards.

If it is possible, pay with cash.  When ever you pay with debt or credit cards, you pay to use your money.  You can only get a credit card at the age of 18, but you can get in debt much faster then 1 month.  Use you credit card wisely.  To get good credit score, buy some things with the credit card that you know would be easy to pay off, and then pay it off.

If you want to become rich, then don’t use credit cards.

If you get into debt like the women in the first video did, you will not get rich as quick as someone  who does not us credit cards at all.

Save 10% of what you make.  10% is all you get to keep, and the rest is for you to spend.  You need to separate your needs and your wants.  Most people don’t know how to become rich.  All they think is about getting a job that would pay well, and they would get rich from that.  There are 5 laws of gold.  Gold in today’s time would be cash.

  1. Gold cometh gladly to those how save 10%, and then reinvest the money.
  2. Gold laboreth diligently to those who work for it.
  3. Gold stays with the person who protects it.
  4. Gold slips away from investors who do not know what they are investing in.
  5.  Gold flees from man who gamble and are buying things of no value.

These are the shorted laws on the 5 laws of gold.

The 5 laws of gold apply’s to every job.  So if you want to become rich, then don’t use a credit card.

Use your calling to get better positions in life, that will get you more money.

Just remember not to invest in something you do not know the field of, and don’t use credit cards.

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