Thursday, March 26, 2009

Debt Free?

Since the day we were born we were strap on with an open bill. Payments need to be made for the medical facilities, infant milk, diapers and etc. As long as we live in this urban jungle, we can never rid ourselves of debts. It is our nature to continue to want more and better things in life. 

Stop a moment and ask yourself this question. 10 years ago, did you need more to survive? If yes, is having more money now, perhaps double your income solved your problem? Most likely NO, because as we earn more we buy bigger toys, we want more comfort and more leisure in our life. And all this comes at a cost.How many millionaires do you know do not have any debts at all? Even though they are wealthy, they realise that it is better to use other people's money then their own. It is all about cash flow management. Today, the only recognised exchange medium is money because barter trading concepts has diminish significantly over the years. 
In the early 70's though Labuan is a small island, it is well known for it's barter trading especially with countries such as Philippines. I personally know some of those people who were pioneers then, became multi millionaires today. The profit gain from the trade is reinvested into shop lots and other properties. Now, the barter trading is no longer a viable business.  

If you think about it, the greatest natural resources is found in most third world countries and developing countries. However the mining and the extracting activities does not make this country rich but rather they sell the goods to the developed country to be churn into finish product where the real money is. The strong marketing campaign further reinforce the perceive value of the product even though it may cost a tiny fraction to make it.

Without debts, most dreams will be unfulfilled because of time factor. Since we cannot rid ourselves of debts might  as well learn to coexist with them. As long as we are earning more than we spend, we will be all right. But most people including myself is struggling to balance our financial balance sheet. Saving all our money in the bank is also not a good solution because you may see on television that long establish banks also file for bankruptcy. 

So whats the solution? Firstly take responsibility of your money instead of depending on others to make the decision for you. Be well informed about financial matters and start a viable business. 

P.S The type of people you are with most of the time often is an indicator about your attitude towards money and your life. So choose and surround yourself with the right minded people.

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