Ryan Ho's Entrepreneurship Blog

Debt is a liability and a obligation to pay for something.

It is created by allowing an individual to use repayment with the intention of using future purchasing finances for a purchase.

It gives both individuals and businesses a alternative and convenience to get they want creating mutual beneficial situations.

The client gets his/her hand on items they want to owe with the use of financing of installment options, allowing clients to buy more with a single source of income spread over the number of months as per stated by the installment agreement.

The banks/businesses will be happy too as they have more sales and profits form the service charged billed to the business operators.

Should the client sign up more installments, the business will be happier, but if it exceeds the client’s threshold/financial capability of repaying, it will turn into debts. Banks will than set into the picture and charge clients an interest for debts incurred on compiling basis monthly.

Having the banks calling up the clients who are now debtors to the bank owing them money is not a pleasant experience nor would anybody want to be in that shoes.

To avoid such situations, it is best to avoid paying in installments, as accidents can happen (touch-wood). When it do happens, sudden lost of income will mean the lost of use of all un-paid items, in the event of inability to repay the banks, items will be auction to recover the repayments of debts.

Failure to repay all liabilities or debts will result in bankruptcy.

It is best to enjoy shopping paying using cash or using debit card or spending with monthly budget so to prevent any unwanted negative debts.

To properly manage debts, one has to know the difference between good and bad debts.

Good debts are mostly used and embraced by the rich individuals or business owners. It happens when they pay for items on installments similar like the majority of clients but with a twist. The only twist is that the rich has another stream of income to supplement, off-set this installment payment and even calculated to profit from the installment as a positive Return On Investment (ROI).

Bad debts are widely used and practiced by individuals and such problems always surface among the poor. They only pay and opt for installment options without additional external sources to offset the repayment scheme and yet keep on increasing their burden of repayment by buying more items on credit without working within their budget or considering if they can afford to pay off the bill thus problems are created in the process.

For better money management and free advice, doing it yourself is the best way possible. Simply using simple add, subtract, multiply and divide to calculate the working budget/income.

Identify all input of money (income, contributions from family/relatives); payments such as insurance, medical policies, monthly expenses for food, transportation and entertainment. Inclusive of amount of money meant for savings and investment and label them as expenses.

So that when you have a clear picture of how much money you have after deducting the necessary expenses and investments and savings which you will not touch, than you will have your working capital or the remaining as your budget to spend on. This way, you will not overspend your money and incur unnecessary debts for nothing.

Spend and plan your money wisely.

Popularity: 4% [?]

Succession is the order or line of those entitles to succeed one another, whereby assets and liabilities are inherited and passed on to the next successor.

Business requires successor so as to further expand the business for continuous growth into millions, billions and even trillions worth of business entity.

In order to do so, a succession plan and course of action has to be put in place before the problem even surface. Planning strategies are the surest and best way to allow the system to be in a prime position to become the next supreme leader in any arena for growth.

It also takes place in families whereby assets are frequently argued and snatched among family members when a elder family member is about to leave. Than the liabilities which often come with health care etc usually gets pushed and kicked around like a soccer ball to one another.

If you have experiences of such events and happens to be part of the process, you will understand why the wealthy and successful people are who they are today whereas the poor only take the assets and kick away the liabilities.

It is their reluctance to learn how the liabilities became a issue and solve it like a bomb disposal squad thus in future there will not be any impending bombs of liabilities growing without your knowledge.

That’s the benefits of absorbing liabilities; learning from other people’s mistakes is the best way to cut short our learning curves.

Popularity: 1% [?]

Substitution is to take the place of a person or an item, to replace the place of something by having a substitute.

Using substitute is a negative habit or mindset thinking that a replacement is just as good, false conscious self-denial thoughts to our mind, replacing inferior quality or less worthy brands for the original brand.

Substitution only happens and is embraced by poor minded people who can accept anything as long as they have something. Wealthy mindset people will however reject and only accept the best they can find without allowing any room for quality drop in terms of service, product or packaging.

Look at the poor, they trying to buy electronic gadgets, latest multi-purpose handphone with camera and mobile computer built in functions wasting their money, keeping up with the fashion fad making themselves only poorer and saving less and less with each increasing month as new products are launched into the market. With new products, poor are getting poorer buying liabilities and not assets.

Look at the wealthy successful people. They purchase property, never sells it, instead they rent it out, collect rents, buy new properties, mortgage it for new property and repaying the mortgage to keep their properties. They sell only assets such as units in a building and not the ownership of the building which they still own the rights to. With a leasehold period, there’s a expiry date to the transaction, so the owner can resell the unit again when the lease term stated in the contract is due. Wealthy people build wealth; they never sell it away making others rich, they just make themselves and help people who help them get rich.

If you want to be wealthy and successful, stop accepting substitution for replacement, insist on the original, and some day you will find yourself to seek for items, assets which you never once looked at.

Learning to say ‘NO’ is a start, mastering the skill of selectively rejection by saying ‘NO’ is the mastery of skill to a wealthy mindset.

Popularity: 1% [?]

Leverage is the use of a lever for advantage over something by using lesser effort. It is to use a small initial investment to gain a high advantage in relation to one’s investment, and to reduce one’s own liability for any loss. It is creates a win-win situation for both parties. If it’s a group investment, it will benefit all of the participants and getting a fair compensation at both sides.

Wealthy people always leverage do helping their partners to earn more wealth together, but the rich people always and only will use people exploiting them for maximal advantage for their person gains.

To succeed and generate wealth instead of money, hang around and get to network with people who are most willing to help people who are willing to be help. Gentle reminder, to succeed and hang around with such people, if you have any hidden agenda or want to steal their business secrets and strategies, you will be plucked out before you know it, people especially them have high level of sensitivity when it comes to deciding who to work with and select at business partners.

Even I thanks to years of exploring and doing direct sales have acquired the high level filtering process of choosing people, what more can you expect from people who have being there, done that?

To have win-win situation, don’t doubt with people who you work with. If you doubt them, don’t bother to even try working with them.

Seek to form alliance and network with people who will guide and lead you by hand and not to exploit and make use of one another cutting and killing each other.

用人不疑，疑人不用。

Don’t doubt a person you’re working with, if you must doubt, don’t work with such people.

Popularity: 1% [?]