102. Instead of making money today, a fool who digging its own grave spends all the money that belongs to tomorrow.
導向成功的金玉良言 --- 成功秘碼 24條
Remember that the home equity loan you have will always be an additional liability until you can pay back what you owe.
Do not mistake home equity as your asset; it’s in fact a potential liability. If you become upside-down on your loan, meaning the property value drops below what you owe during a recession, you’d suddenly find yourself swimming in debt.
What is borrowed must be returned one day. A home equity loan is a liability, not your liquid asset. Be very clear on this: Do not spend your equity loan like it’s free cash.
Many Chinese home owners like using the equity in their house to buy additional properties, which is highly risky. Similar to buying with zero down payment, the risk of failure is as high as 90%.
Do not take out an equity loan to make up for your lack of cash or savings. You’d be faking your wealth by using the equity loan to buy additional houses, stocks, and cars. Money should be spent on necessities, not to satisfy one’s vanity.
「沒有屬於自己真正的儲蓄 / 現金，就不要用房屋淨值貸款來充做闊佬。用淨值貸款的錢來買房子 、 買股票、買汽車，是打腫臉充胖子的表現，俗話說：錢是要用在刀口上 (急用上 )，而不是用在面子上。」
It is most unwise to use a loan to pay for your debt as in some home owners who make payments on their house with an equity loan on the property. When you’re short on cash, figure out a way to earn more money, instead of looking for new ways to borrow money. Taking out a loan to pay for another loan will only serve to increase your liabilities, not reduce them.
Some people pretend to have more money than they really do and buy clothes, shoes, purses, or cars with borrowed money. Spending tomorrow’s money today is a sign of bad financial planning.
Money should be earned legally through hard work. You would be smart to create a money plan and work hard for tomorrow’s wealth.
Spending borrowed money at will, similar to stealing money, is a bad practice, like a bandit.
「用借來的錢拿來消費 / 花費，這就像是竊取不屬於你的錢一樣，這是一個錯誤行為 / 強盜行為 。」
If you borrow uncontrollably, you will run yourself into a dead end.
When you are in a financial hole, find a way to make more money with your skill and ability. Don’t try to work your way around by borrowing money. And never take on new debt to pay for old ones—you’d only be making things worse for yourself.
「要用自己賺錢的實力 / 本領，去解決財務漏洞，而不是用借錢的方法來搪塞問題。切勿以債養債，以免財務問題更形嚴重 / 惡化。」
Increasing our budget deficit to alleviate the nation’s financial troubles is in fact compounding the problem. Printing more currency to bring down the budget deficit does not resolve the issue. It only leaves more debt that our future generations are expected to pay back.
The government’s decision to focus on saving the stock market may be in vain. Salvaging the economy is much more important than saving the stock market. Furthermore, revitalizing the consumers’ confidence should take priority over salvaging the economy.
To salvage the housing market, economics is not enough—an implementation of psychology is just as necessary.
Revitalizing the real estate market is far more important than bailing out financial institutions, just like the recuperation of home owners’ confidence is more important than any stimulation package for economic growth.
Economic stimulus plans are never free. The imbalance between lowered tax revenues and increased spending will need to be repaid by future generations.
Politicians resort to empty promises just to get a few more votes, offering bonds that will push the burden onto future generations. This is an embarrassment of democratic nations.
A government that only prints more dollar bills to relieve economic pressures, instead of seeking a truly viable way to balance its budget, is not a competent one.
Borrowing tomorrow’s money to pay for today’s expenses is the same as living a lifestyle of fraud and deception—these stories never end well.
The voters need to elect a leader whose exit strategy doesn’t involve pushing our debts onto our children.
Do not pretend to be richer than you are, and don’t use tomorrow’s money to cover today’s expenses.
Liabilities more than assets, consumption more than income, or borrow money over his solvency, is self-defeating fools.
There must be a limit to how much you can borrow from others, in that you must never borrow more than you can repay. Taking on loans you can’t pay back is no different from stealing.
A wise man work hard to build up his savings for tomorrow and has a plan to earn even more the next day. Idiots are those who don’t know to make money today and only spend the money that belongs to tomorrow.