Debt Costs More Than Just Principle + Interest

4개월 전

Hey Jesspressed ones

I often moan and bitch about the education system and how it has failed us and I could ramble on about this for ages.

We often speak about how education is the key to alleviate poverty and job loss, how education will help solve social ills and reduce crime, how education will free us from corporate structures and yes it can and it should but it doesn't, because education in its current form is a corporate or government-run group think tank that only breeds more cogs to slot into the machine and carry on the status quo.

I am personally the proud owner of an overpriced piece of paper called a university degree and I realise I wouldn't be sitting here complaining about things if I didn't get it.

If I didn't get it I would not have the merit to get the job with an okay-ish pay and benefits, I would not have learned the money-making skills I have now, and it has indirectly helped me but as for the actual contents learned from 4 years of studying, the product fails abysmally.

Teach me how to money

I went through school, university and 4 years of the working world and I always wondered when would someone be teaching me about money, how money works, where it comes from, what are the different financial instruments used for and why some people are able to work the system better than others.

My teachers, my bosses, my mentors, my lecturers didn't teach me money because they did not understand it themselves. This may be a bold statement to some but if all your money comes from trading time for it, you don't know money!

So I thought if this tool is so valued and so important why don't I start learning more about it and how I can make sure I make the best financial decisions for my future and the first thing I focused on was debt.

Down-market-740x431.jpg

Image sources: - stockinvestor.com

A debt to us all

At this moment I have zero debt and I'm proud of that fact, having a positive net worth allows you certain comforts, and im not talking spending money, oh I live like a pauper, any money I get is immediately shifted off far from where I can find it to work for me and give me a return in the future.

Which is basically the exact opposite of what my peers have done, when we all started to earn our own money many bought cars, homes, had extravagant holidays, bought luxury goods, had kids, etc all the normal stuff.

The majority of these actions were financed by debt because they wanted things they could not afford.

Debt is by no means the system of oppression many make it out to be, if you misuse debt you only have yourself to blame. If I'm going to take out debt I'm not going to do it without knowing won't be paying it back myself.

Yes, you heard me, you should NEVER pay back the debt you take out. When you leverage the bank's money all you should be doing is acting as a trusted middleman between the bank and people willing to pay off your debt.

If you're buying a home, get someone else to rent it, If you're financing a business, your customers should be paying that loan.

Debt should be used to create new income streams and take advantage of opportunities, not purchase liabilities that will see you tied to them leveraging your potential income for the foreseeable future.

But this is what we're taught and through social indoctrination, this poor money habit has been able to continue through generations and across the world. It has made realtors, bankers, car manufacturers and dealers wealthy while continuously trickling income from the poor and the middle class into their pockets.

The rich become rich and remain rich because you keep giving them your money.

Money doesn't make the world go round, debt does!

The world has been hooked on cheap money and instant gratification and in doing so prices of certain products and services are able to skyrocket well above that a fair representation of their value is. By using or rather misusing debt we've created ticking time bombs in real estate, car loans, student loans, life insurance and many more.

All these financial models are built on the fact that there will be more people and more demand and we can keep printing money because there will always be suckers willing to sell their time for money and pay it back, its a sure thing.

The instant that is no longer the case, this whole thing will collapse on us. Do I know when that will be? No clue, will it ever happen, most likely! This system is set up to fail but only fail spectacularly which is why it's so important to have a financial education.

The worst part of these crashes is that the average man is the one that gets blindsided and wiped out thinking hey but I did what you told me to do, I work, pay my bills and taxes. Well, Unfortunately, that wasn't the right way to protect yourself against an economic downturn.

Opportunity costs lost to debt

While debt comes at a cost we can count, there is literally Trillions or more worth of lost opportunity costs due to debt. If you're holding down student debt, a mortgage or a car loan you're less likely to take that overseas job, to come in as in investor on a start-up business, to invest in opportunities in crypto and to have disposable income that can be used to build passive income streams.

Your appetite for risk is severely reduced and you're losing the ability to earn while you're paying for it with your only ability to earn. While this isn't a rule and you can still get into opportunities should you be a saver or have an income that allows you to do so, it isn't a prevalent action most people take.

The current banking system is NOT designed in your best interest and if you listen to everything they say without doing the proper research you will end up in the debt trap that keeps their shareholders happy and their doors open.

They are selling a sub-par product and many of us have grown tired of it, if we are to build a sustainable future it will be off the backs of improved financial education as well as an augmented monetary system that allows us to opt-in and out when we feel like it and not to be tied down to one product.

Debt won't be going away any time soon, so it's best you learn to leverage it wisely. As much as I would like to believe in the altruism of people, the monetary systems of today and the future will always be one based on a Darwinian principle.

Have your say

Holla at me in the comments! All my commenters I will now refer to as Jessie. Jessie is a good friend of mine, but Jessies got a girl, and I want to make her mine.

So have at it my Jessies! If you don't have something to comment, simply comment "I am a Jessie."

Let's connect

If you liked this post sprinkle it with an upvote or resteem and if you don't already, consider following me @chekohler
follow me


Buy & sell STEEMDonate LikeCoin For FreeEarn Interest On Crypto
blocktrades.jpgLikecoincryptocom.jpg
Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
STEEMKR.COM IS SPONSORED BY
ADVERTISEMENT
Sort Order:  trending

Saludos @chekohler

El problema del sistema educativo, a mi parecer; radica en los estereotipos o modelos a seguir muchas veces planteadas por las sociedades y aprovechadas por el sistema económico, ganando terreno las modas o tendencias de poca importancia o falta de un verdadero valor agregado.

Recuerdo en mi primaria, algunos maestros intentaron explicar de alguna forma sobre los sistemas económicos; saliendo de los lineamientos de los programas educativos, a los pocos días había padres o representares quejándose en la institución por la ideología extraña que se impartía en el salón de clases.

Ya en la secundaria, se pudo observar el crecimiento y la práctica de la economía del consumo; estas en la moda, si y solo si, compraste lo último que salió al mercado; generando muchas manifestaciones de exclusión social.

En la universidad te encuentras a las tribus, docentes y profesores forman círculos de influencia; donde se debe desarrollar actitudes de político para poder transitar por estas pasarelas ideológicas y de intereses personales hasta poder graduarte.

En realidad graduarse no es nada fácil, y lo que deseas al salir de la etapa académica es iniciar la etapa productiva, en la cual también encontraras tendencias, influencias, tribus, que te pedirán; tomes sus costumbres y prácticas, de lo contrario estarás excluido.

Conociendo lo anterior, y en beneficio de una vida equilibrada, con ingresos superiores al egreso, se debe desarrollar conocimiento, habilidades y un entorno social y económico que permita el desarrollo personal orgánico, en paralelo al mundo “real” en el que vivimos.

·

What an extremely insightful comment and I’m glad you took the time to share your thoughts which I completely agree with, poor financial habits is very much a byproduct social conditioning and while I agree that the cycle needs to be broken I think education starts at home and with ones self

We have to stop relying on institutions and people of authority for all our information and start to take personal responsibility for education!

I don’t know how we even begin to change the fabric of society and I think it will always be a lonely road for those who try to challenge the established order

I think we can only change the minds of those willing to question the current status quo and from there build communities of like minded people that can create a movement towards change! Reach one, teach one

Posted using Partiko iOS

·
·

Saludos @chekohler, gracias por tu complemento

La solución es la educación y la capacitación.

En este sentido la información se puede convertir en un producto interesante y atractivo, el cual podemos preparar para comercializar, generando ingresos los cuales puedan ser re-invertidos para mejorar la calidad de la información, así como las redes de distribución. Veo lo planteado aplicado en este ecosistema Steemit.

Hay necesidad de capacitación por parte de la población, y hay suficiente talento humano preparado, así como infraestructura para poder conseguir un producto de calidad mejorable en el tiempo.

Vendamos información, y ayudemos a las personas a convertirla en conocimiento, este es el nicho de mercado!

I am very happy I have no debt.

Posted using Partiko Android

·

And so am I my friend!

·
·

Sweet 👍

Posted using Partiko Android

·
·

Well I wouldn't expect anything less from a fellow LEO hodlr lol we're about making money not giving it away

·

You must be a rare breed, my friend, lol it's very easy to fall into the debt trap I see it every day

·
·

Yes almost every one in debt these day's and misty for stuff not necessary.

Posted using Partiko Android

·
·
·

Indeed, we live in a world where it seems it's better to look rich than to be rich

·
·
·
·

Unfortunately yes.

Posted using Partiko Android

Hi, @chekohler!

You just got a 5.51% upvote from SteemPlus!
To get higher upvotes, earn more SteemPlus Points (SPP). On your Steemit wallet, check your SPP balance and click on "How to earn SPP?" to find out all the ways to earn.
If you're not using SteemPlus yet, please check our last posts in here to see the many ways in which SteemPlus can improve your Steem experience on Steemit and Busy.

Hi @chekohler!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 4.121 which ranks you at #3457 across all Steem accounts.
Your rank has improved 19 places in the last three days (old rank 3476).

In our last Algorithmic Curation Round, consisting of 136 contributions, your post is ranked at #52.

Evaluation of your UA score:
  • Some people are already following you, keep going!
  • The readers like your work!
  • Good user engagement!

Feel free to join our @steem-ua Discord server