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Debt Help

Other People's Money!

6th October 2009

It seems to me that the average person's financial knowledge is always half the story. Why? Well I came up with the concept OPM, which stands for Other People's Money. Now the reason I say our financial knowledge is half the story is because we know that to buy a house, which most of us cannot afford anyway, we need to get a mortgage loan. That is someone else's money, namely the bank. The same goes for buying a car. The same goes for getting a student loan, credit card and any other form of debt you can think of. So the point is we know to "advance" we need to use other people's money. But what we seem not to know is how to use the OPM concept to get wealthier.

Debt Help Are we intentionally not given the whole story to keep us in check? Makes me wonder certainly. I know that the same financial tools available to me, and I'm just an ordinary guy, are available to rich people too. I ask myself, how come they keep getting richer and I seem to simply accumulate more debt and struggle to get by? Well it's all about financial education. Yes guys and girls, my favorite author, Robert Kiyosaki talks about financial intelligence all the time. The fat cats use other people's money to solve their own problems and make more money for themselves. It is evident in the current financial melt down in our economy. When things went horribly wrong with the banks, whose money solved the problem? Not their own, but other people's money.

When companies where on the verge of collapse whose money saved them? Bail out money = other people's money. With all the spending and budget deficit of our economy where will government get the money to pay back the massive loan? The taxpayer = other people's money.

Here is another example. When companies look to expand and raise more capital what strategic moves do they embark upon? Initial Public Offerings or selling of shares to the public. Why? To use someone else's money to make more money for themselves and let that someone else share in the profits too. So you see, the world revolves around other people's money. Business revolves around other people's money. It's a tried and tested formula which if used wisely with financial intelligence could make you lots and lots of money. If you use other people's money then it is wise for to use it to make more money for yourself rather than to acquire liabilities and then make less money for yourself. Something to ponder about? I certainly think so.

So the next time you think about getting a loan, ask yourself this question, "how am I going to use other people's money to make more money for myself?"

"The gratification of wealth is not found in mere possession or in lavish expenditure, but in its wise application. " - Miguel de Cervantes


Comments (6):

Helen Says: Ha ha! Wish I had read this nine years ago! | 10.6.2009 |

Dylan Says: Ofcourse we need to borrow other people's money and pay it back, how else would we ever get anywhere? | 10.6.2009 |

Felix Says: It's not so much about getting the loans it's about how we use those loans. I see your point Kevin | 10.6.2009 |

Karen Says: Mmmhhh, I never thought about it that way. Interesting insight | 10.6.2009 |

Deluxe120 Says: You may have a point here...........| 10.6.2009 |

Andrew Says: So in other words get a loan to run a business rather than buy luxury goods! That is common sense though not commonly practiced | 10.6.2009 |


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