Being in debt means using up the future in the present. Essentially, it’s about how we manage our time. Therefore, the most valuable resource for debtors is time, and it depends on which side time favors. Paying off debt is like repaying borrowed future time early. When the ability to generate wealth over time decreases, the future time becomes a burden, and the debtor faces the pain of bankruptcy. Taking on debt is costly. It may seem like borrowed money is repaid with money, but the irreplaceable resource of time is also returned along with interest. With the rise of postpaid credit cards as a common payment method, we’ve become less sensitive to the associated pain and cost. There are two ways to spend money: using present time or future time. The costs and pain are much higher when the future is spent as if it were the present. - Joseph’s “just my thoughts”
The most important aspect of investing is managing risk. However, in most cases, risk management is interpreted and assessed in relation to past patterns. When asset prices fall, the perceived risk appears significant. That doesn’t imply there weren’t risks; investors simply didn’t recognize the risks that originally existed. The level of risk is almost identical whether the price of an asset goes up or down, but when prices decline, they tend to drop further because fear prevents us from purchasing more assets, leading us to retreat. It’s not that the risk has escalated. It is unwise to link risk with past patterns. There have been numerous exceptions in the world, and many beings on this planet have disappeared because they could not adapt. Did dinosaurs not become extinct on Earth ? Exceptions are exceptions because they are unpredictable. - Joseph’s “just my thoughts”