Wednesday, February 6, 2013
Debt rich and cash poor
This is what I call myself and I believe tens of millions of people in the U.S. and European countries and others where debt is king. People really have a huge amount of debt and that is what they carry for most of their lives (or even beyond that) and cash is king when you have it but if you are constantly short in your checking account, even there you can be cash poor. Debt has its positive sides and negative sides. Strangely people will ask how debt can have positive sides. For example, as you all know debt has to be paid eventually, but if you cannot take on debt you would not be able to afford a house, car and other finer things in life. We go into debt so that we can have things now and hope to pay it off during the course of the loan. Although I hate debt with a passion (as it limits your ability to enjoy life and stress is a major factor of it) but if I don’t take on debt, I don’t have the ability or the capacity to pay for a house and car and other things. I hope to achieve one day be on the opposite side that is being debt poor and cash rich but until that time I am debt rich (and drowning in other people’s money) and cash poor (since all my cash go to pay off my debt).