Investing means I loan my money (directly or indirectly) to people who want to, guess what, buy things or use services for which they may or may not have the money, and are willing to pay for the privilege of using mine. That can mean other companies like mine, it can mean small business owners looking to expand, it can mean entrepreneurs, it can mean real estate investors, retailers, wholesalers, you name it.
By earning "interest", I'm basically selling a service and charging a fee for it. I'm engaging in a contract for you to use my money for something, temporarily, and the "rate" is the same as an hourly fee for a consultant if you will.
By paying interest, I'm basically using the service and paying the fee for it. The service is valuable to me, because it helps me accomplish a goal. Not everyone uses credit wisely, but in business terms, it's necessary to use credit as a tool for maximizing the return on your capital.
Some companies operate "debt free" and are proud of it...I call these companies "stupid". One such company is Novell. Smart companies use debt as an important tool to maximize profits, but like anything, it has to be managed properly. It's worth the trouble.
As it applies to lease returns, the leasing company will clean up and "refurbish" the equipment. What they "pay" for the equipment coming off-lease is called the residual value (in FMV terms at least) - it amounts to the item's original cost, minus depreciation. I won't get into the finer points of leasing here; suffice to say that the leasing company will re-sell the equipment as 'refurbished', for a profit (e.g. more than the residual value). In the mean time, they made a 3% return on their investment - meaning the equipment they bought for you. May not sound like much, but a 3% margin on 'sales' isn't bad when you're doing billions of dollars a year in volume and require relatively few administrative individuals to keep up with it.
I love the "debt is a tool" line. I have heard that for years from so many people in debt. Watch how that tool pokes everyone in the eye over the next few weeks.
Debt is not a tool, its a copout. Work hard, save money, buy things you need. This goes the same in the business world. If you want to start a business then do it with your money that YOU earned. If you are using someone else's money and have a government with bankruptcy laws and corporate safety nets then you have a lot less risk involved and thus less incentive to do well.
I love the "debt is a tool" line. I have heard that for years from so many people in debt. Watch how that tool pokes everyone in the eye over the next few weeks.
Debt is not a tool, its a copout. Work hard, save money, buy things you need. This goes the same in the business world. If you want to start a business then do it with your money that YOU earned. If you are using someone else's money and have a government with bankruptcy laws and corporate safety nets then you have a lot less risk involved and thus less incentive to do well.
It's a big world out there, killer. Any tool can poke you in a painful place if you don't know how to use it.
If you started and operated a business without credit, and I did the exact same thing using credit wisely, I will financially out-perform you every single way you care to measure it. There are no merit badges for owning things outright, sucker.
__________________ I missed a Mensa meeting for this?
I haven't needed any professional services this far, and I made it to married with house, dog, cats, cars and baby on the way.
Grats on restoring old cars. That's my passion as well. I do 95% of the work myself also. I hate when other people touch my stuff.
Back to the reality at hand though, do you need more than food, water, and shelter? You can get all of those with your own two hands.
I don't want to and I don't need to.
With a child on the way, you might find things change. Insurance will go up, utilities will go up, food will go up, saving for college will start. Your job is dependent on taxes, whether from direct utility or area. In a recession those tax models can change as people decide to turn off city water or just quit paying because they can't. As businesses fold, THEIR contributions to that base reduce.
There is more to this economic world that "what you can do with your hands". Welcome to the 21st Century.
I will admit it's a small character flaw I have. I always hoped that a tornado would hit my house as a child. I love to see car crashes. I like to see world economies crumble. It makes life interesting. Who wants to live in a vanilla world where nothing bad ever happens.
Son, that is not a small character flaw. That is sadistic. Say that around the right people and they will take your child away. They will take you away for "observation".
In all seriousness, see somebody about that. It is not healthy.
With a child on the way, you might find things change. Insurance will go up, utilities will go up, food will go up, saving for college will start. Your job is dependent on taxes, whether from direct utility or area. In a recession those tax models can change as people decide to turn off city water or just quit paying because they can't. As businesses fold, THEIR contributions to that base reduce.
There is more to this economic world that "what you can do with your hands". Welcome to the 21st Century.
If I lived ANYWHERE near my limits I might be worried about those changes, and haha like I'm gonna let my kid go to college....
If my job goes away I will focus on one of my other sources of income. I diversify through my tradeskills instead of investments. Investments can fail, but the more tradeskills you know the more valuable you will always be.
Like I said again. If it all folds I will farm my own food, drink from the creek, and live in a teepee.
Quote:
Originally Posted by QBNCGAR
It's a big world out there, killer. Any tool can poke you in a painful place if you don't know how to use it.
If you started and operated a business without credit, and I did the exact same thing using credit wisely, I will financially out-perform you every single way you care to measure it. There are no merit badges for owning things outright, sucker.
Yes Yes you are right about one thing. You WOULD outperform me financially. I am not concerned with WINNING the MOST I only need to succeed. This concept of OUTPERFORMING financially is why we have CEOs making millions of dollars. I only need about $35k to survive with my current expenses though so as long as my business profits that much I am good. You can take your stolen profits and run with them all you want. I bet I get the kharma merit badge for not stealing from the American people though.
Son, that is not a small character flaw. That is sadistic. Say that around the right people and they will take your child away. They will take you away for "observation".
In all seriousness, see somebody about that. It is not healthy.
Why do you think people watch movies? It's because real life bores them.
If I lived ANYWHERE near my limits I might be worried about those changes, and haha like I'm gonna let my kid go to college....
If my job goes away I will focus on one of my other sources of income. I diversify through my tradeskills instead of investments. Investments can fail, but the more tradeskills you know the more valuable you will always be.
Like I said again. If it all folds I will farm my own food, drink from the creek, and live in a teepee.
My dad, who was a butcher at the A&P for 44 years summed it up best. You can work for your money, or your money can work for you.
When he retired he traveled to five continents, dozens of countries and he and mom enjoyed the 20 years of retirement in wonderful fashion. All paid with money that worked for them.
I always hoped that a tornado would hit my house as a child. I love to see car crashes. I like to see world economies crumble. It makes life interesting. Who wants to live in a vanilla world where nothing bad ever happens.
Quote:
Originally Posted by Haddixracing
Why do you think people watch movies? It's because real life bores them.
If you think the thoughts in those two posts are connected, you must find Sarah! a mental giant.
You really do need to quit trolling. You can't be this dumb.
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