Nobody Ever goes broke that doesn’t owe Money -
This is the saying by Warren Buffet. According to this legendary investor also known as “Oracle of Omaha”, You can never be broke if you don’t owe money. In other words, the people, companies or governments who go broke have taken excessive debt.
Since last 2 decades, US Fed Government, Corporates & Individuals are taking more and more debt to fuel their life styles, expansion and growth of businesses. But today the US Economy, Companies & Individuals are facing trouble.
Many Individuals are Broke. Large Companies like GM Motors & Lehman Brothers are Bankrupt. All because of the excessive debt. Remember, Warren Buffet has never ever taken any kind of Debt and that’s why he is second rich person of the world.
His Company Berkshire Hathaway is debt free through out its history.
According to Warren Buffet, you should never invest with borrowed money. While what the most of the world is doing? Well, they invest with borrowed money, they fuel their high status life style with borrowed money and companies fuel their unbelievable growth with debt.
But the truth since centuries that, if you want to accumulate serious wealth than you should stay away from any kind of debt. In other words, If you never want to go broke than never borrow money. And today if you are in debt than simply get out of that debt as early as possible in your life. Try vigorously to get out of that debt.
The first step of getting out of debt is stop borrowing money and cut down all of your credit cards. If you don't stop borrowing money, you can never get out of debt. Now just logically think that, if you never ever borrow money in your life for anything, reduce your expenses, increase your income and cashflow (Income – Expense) and divert that cashflow towards acquiring assets (Investments) than you will become very rich over the time.
Remember my words, Whenever you take a debt, You are doing nothing but just increasing your chances of going broke…!!!
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