A ‘transaction’ is an act of debt between parties. The seller owes goods to the buyer (performance debt), and the buyer owes money to the seller (monetary debt). A transaction is considered complete when the debt is settled and the promise to owe each other is called a ‘contract.’ Thus, a good trader or businessman excels at making and repaying debts. When it comes to debt, the type of debt matters. Anyone who misjudges this should not engage in business. - Joseph’s “just my thoughts”
The essence of money is ‘credit.’ When individuals with no credit possess a significant amount of money, they use it less efficiently than those with credit who have the same sum. This inefficiency incurs additional costs, resulting in lower profitability compared to someone who is trusted. In our world, even an equal amount of money is influenced by credit. The most fundamental step in establishing credit is to honor your verbal commitments. Individuals who do not fulfill their verbal promises tend to experience slower growth or may even fail, regardless of having an equivalent amount of money. - Joseph’s “just my thoughts”