In this part i will try to talk about debts a little bit just to let every borrower get an idea about the best thing he can do when borrowing money and what is considered a good investment other than steemit (since now steemit is the best investment).
In the “Diary of a BANKER-Part 11” we had an idea about the bad debts, while today we will see what is a good debt with some examples.
We said that the bad debt is about anything that will lose some of its value after buying it, but sometimes it’s a need and a want in our life so we have to buy it, such as: car, clothes, furniture and so on.
While the good debt will help to increase the net worth; so when buying a car in credit for personal use it’s a bad debt, otherwise when buying a car for the purpose of “Taxi cab” it’s a good debt, here we have two examples where the first one is getting a car without letting it to generate money for the borrower in order to pay his debt, but in the second example buying a taxi cab and working on it that will generate money to pay your debt and after that you will start making profit.
So the good debt is about any borrowed money that will help generating more money in the future and that’s the good
investment.
Some examples for the good debt:
- student loan.
In this case you are a buying a product (Education) that will lead at the end to a well-paid job. - small Business Loan.
Establishing a company is also considered as a good investment so borrowing money for that purpose of course with hard work that would be a good debt.
At the end the best investment at this time as i said above will be investing your money (if you have), investing your time and effort in STEEMIT (the new entertaining social network and financial solution).
To be continued with Diary of a BANKER Part- 13
The text published in this post is my original work.
Some images are from different sources click on the link below the image to view the source.
**Kindly don’t forget to check the old parts from “Diary of a Banker” for entertainment and more information.
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@arabsteem curation trail !
و تم اختيار مقالتك ضمن مقالات يومية مختارة للنشر اليوم في مقالنا! :)
Thank u @arabsteem
People often forget the difference between good and bad dept.
It’s the problem with the word debt maybe it should be changed hahaha