HOLDING A DEBT IN THE LONG TERM OR ASSET IN THE LONG TERM 2024?

INTRODUCTION

well, this is my only post for this month since I was relatively very busy with my Quarter reports and all other fundamentals running into the business, i am writing this article to share an important note for everyone that I have observed carefully during this month within my relatives and homies and also with other people.

In India, during festivals, your house is actually crowded with relatives and neighbors so it becomes very common for people will ask you multiple questions and yes those questions may or may not be likable for you but defiantly it matters to them.

The common point that I generally see among them is what I really want to share with you all which is the mindset difference in understanding the concepts of wealth and richness, people just not in my home but even commonly don’t really understand how money works. but again you can’t convey this factor to them. ( laughs)

the conviction that I have observed in people is that they really are attached to what society has to tell them or what others think about them, [ well I generally don’t think about anyone who is thinking about me so it was quite difficult for me to understand ( laughs)]

PROBLEMS THAT I HAVE FACED

The biggest problem I have embraced is the mindset problems among people that the thing they are calling assets like cars, houses, and mobile and they have purchased it under EMI which they have to pay for along 15-25 years and they want it at instant also they think that they are doing the right job because the so-called society is thinking highly of them.

when I tried to convince one of my uncles thats these were actually not assets, he simply told me that for me assets are something that is respected by society and people, I was practically stunned to get the answer that 95% of people do really give so much importance to what their friends and relatives will think about them and what is the reaction I will get after i post these in social media.

well to be honest my uncle also gave me one piece of advice that is you just have one life so buy whatever you want whenever you want use the system and do it, I said to him that if you had used even 50% of this mind in understanding your financial report card than you would never had stress or Depression regarding your job.

UNDERSTANDING THE PROBLEM!

Well after all of this, I can really say he didn’t understand a thing whatever he said so consciously because what he was holding in his hands was debt for the longer term which means within the next 20 years he has to repay the debt to the bank that means ” he is actually borrowing money from his future self”

which means there will be a time in the future when he will not be able to buy anything and get into more debt to repay his previous debts and he also has to lower his expenses and lifestyle in the future, unless he learns and understand what is he getting into.

people just want to know how to look rich as fast as possible after watching all those social media posts of other people thats the dopamine effect they generally get into their mind and not having prominent financial knowledge makes them go in much worse condition.

SOLUTION TO THIS PROBLEM-

so first the person himself/herself has to understand what do you wan to get in the future whether by acquiring real assets like ( stocks, bonds real estate) or by being poor mentally and financially by getting into unwanted debts and naming it RESPECT.

Well if you just asked me then I would have simply told you that people don’t really understand what they are holding for themselves in future A debt or an asset.

So what are you holding in the future?