Nick Lockhart’s DEBT Series - Part 1
Yesterday, presidential hopeful Barack Obama described the current attitude toward the credit crisis as “Irrational Despair”. Malcolm Turnbull, Opposition and Liberal Party Leader said there was “more emotion than reality” about right now. I agree with them both!
It’s fascinating to observe how the same set of circumstances can invoke such different responses from different people. Given this, I think it pertinent to unravel the subject of DEBT. Today’s blog will be Part 1 of a series that I will expand on over the next few weeks.
Yes there are serious challenges in certain sectors of the global economy; however, the media are over sensationalising the news and having a field day peddling fear. In a perfect world I’m sure you would love to have no debt; me too… but I refuse to listen to the doomsayers suggesting we sell everything and get out of debt.
I can’t say for certain how the world will look next year or even next week. I can say for certain, however, that you have three ways of securing enough money for your retirement:
- Inherit it
- Steal it
- Learn to manage debt properly
Like a scalpel, debt is a tool. In the wrong hands it can do harm… but in the right hands it can be a lifesaver!
My desire is to see more people gain financial literacy and learn how to manage this tool; called debt. I do not ever suggest irresponsible borrowing; i.e. borrowing for what you shouldn’t borrow (like a TV) or borrowing for worthy purposes that you simply cannot afford (such as investment property).
Equally, I do not condone the attitude of “it’s all too hard; I’ll just do nothing”! Sticking one’s head in the sand because he or she is afraid of error or failure will actually guarantee the very thing being avoided – POVERTY!
The day will come when you and I will be unable (or just don’t want) to keep working to support ourselves. Whose responsibility will it be for your food, clothing, shelter and healthcare? We know that the pension is about enough to keep you alive… yet with very little dignity. Our goal ought to be to self fund our retirements; and to this end we have three choices. If you are not going to inherit it and you are not going to steal it… then it’s time that you “bite the bullet” and place some priority on learning to manage debt properly.
I look forward to continuing this theme in the weeks ahead. My true desire is that the information I share will be the catalyst for positive change in many lives. Please forward this to anyone that you think would benefit and if they subscribe to my newsletter they will receive their own next Friday.
Happy investing,
Nick Lockhart
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October 13th, 2008 at 9:37 am
what a quote ; Like a scalpel, debt is a tool. In the wrong hands it can do harm… but in the right hands it can be a lifesaver!