Wednesday 16 August 2023

[Post 270] How The Rich Use Debt To Make Billions - Best Tips and Tricks


Everyone seems to hate debt, yet, the richest people in the world all LOVE debt. Why? Because debt is a beautiful thing that anyone can use to their advantage.

Not too long ago, a very wealthy man wanted a new yacht. Not just any yacht- the world’s largest super sailing yacht, which features three decks, a swimming pool, a helicopter landing pad, and a kinetic-propulsion system. The massive vessel known as Y721 was built in a Dutch shipyard near Rotterdam and made headlines when it was revealed that he was considering dismantling a historic bridge to get the yacht to sea. 

The plan was ultimately scrapped after public outcry, and Y721 was quietly towed to a different shipyard for its finishing touches. 

But that’s not really the strangest thing about JB’s newest toy.Jeff Bezos,the founder of Amazon is an insanely wealthy man who could easily hand over the $500 million in cash to pay for his megayacht. But instead, he took out a loan to finance the build. Why would someone worth nearly 150 billion dollars take on debt?! I mean, someone call Dave Ramsey! 

The first way you can leverage debt to create wealth is by tapping into your home’s equity.

If you bought your house years ago, and have been making your full mortgage payments regularly, chances are you’ve built a substantial amount of equity in your home. Maybe it’s almost fully paid off. And this is a HUGE opportunity to grow your wealth.

You can use your home to build another income stream. Your primary home continues to appreciate in value, and so does your second property. 

Another way to use debt as leverage with the equity you have in your home is to obtain a home equity loan. A home equity loan comes as a lump sum of cash. It’s an option if you need the money for a one-time expense, like a down payment on a second property or a major renovation. These loans usually offer fixed rates, so you know precisely what your monthly payments will be when you take one out.

One thing rich people LOVE to do with debt is to use it to build an entirely new stream of income or expand on existing streams of income. You can use this same technique with your own business. This is how people end up owning multiple franchise locations, expanding their business product line, and doing a massive increase in hiring across their businesses.

But perhaps the most well-known and highly divisive way the rich leverage debt is by using it to avoid paying taxes. Jeff Bezos didn’t pay income tax from 2016 to 2018. And Warren Buffet paid only $23.7 million in taxes between 2014 and 2018, despite his wealth increasing by $24.3 BILLION during that time. 

First, when it comes to non-salary-related income, only profit is taxed. That means that while you can report a very high revenue at the end of the year, you can also offset the amount of taxes that you owe by reporting a very high total amount of expenses. Let’s take the example of Jeff Bezos, who, in 2007, paid zero dollars in federal income tax, according to ProPublica’s investigation. That year, Amazon’s stock nearly doubled. And Bezos reported $46 million in income, mostly from interest and outside investments. That entire amount was off-set by various expenses.

Using debt to grow even richer is just one of the things that the rich do to grow their wealth. But don’t do something ONLY because you see rich people doing it, because sometimes, rich people can give HORRIBLE advice. Check out my video about why you shouldn’t take financial advice from the ultra wealthy, I’m sure you’ll love it.

Monday 14 August 2023

[Post 269] Being scammed led two Hwa Chong boys to set up sneaker marketplace now valued at US$80m | LWS


Richard Xia co-founded sneaker and streetwear e-marketplace Novelship because sourcing limited-edition apparel online left him susceptible to scammers. So far, it has raised US$23 million in funding, and rapper Snoop Dogg recently became a partner.

Wednesday 9 August 2023

[Post 268] China’s Unemployed Youth: Why There Aren't Jobs For New Graduates | Money Mind | Full Episode


One in five young people in China’s cities is unemployed – and the situation is expected to get worse before it gets better. Why can’t China find enough jobs for its youth? If the city is lacking job opportunities, could the countryside offer greener pastures? Plus, meet China’s “full-time children” – young people finding job options closer to home.

Sunday 6 August 2023

[Post 267] Most Singaporeans feel they need at least S$500,000 to feel financially free: Survey


How much must we have saved before we can say we are financially free? A new survey by financial company Singlife puts the figure at around half a million Singapore dollars. This means putting aside S$1,700  a month over 27 years. But is that doable for most people in Singapore? CNA asks Chief Customer Officer at Singlife, Guillermo Arbeiza.

Saturday 5 August 2023

[Post 266] The End Of Free Money At The Federal Reserve


The U.S. is entering a new economic era. It began with an interest rate tightening cycle coming out of the Federal Reserve, with decisions that have reshaped personal finance in America. Some savings accounts can now return meaningful interest for the first time in years. It has also led to a Wall Street reshuffling, and a wave of corporate bankruptcies as some bad bets turn sour. With these free money years coming to a close, we examine how the Fed's decision-making has affected the economy.

Wednesday 2 August 2023

[Post 265] Stuck With Low Pay, How Taiwan’s Young Graduates Cope With High Costs | Asia’s Stuck Generation


Millennials in Taiwan are facing a new reality — high cost of living, stagnating wages and tougher competition for well-paying jobs. Despite getting university degrees, many are not better off financially than their parents’ generation. Some are just surviving, with no savings at the end of each month.

Unlike their parents, who entered the workforce in the 1980s during the golden era of wage growth in post-war Taiwan, youths today face single-digit economic growth and slow wage increases, amid overall inflation and the rising cost of housing.

CNA Insider follows the lives of a few ‘trapped’ youths to see what they’re doing to cope - including working up to 4 jobs, or going overseas to work in F&B jobs.

Tuesday 1 August 2023

[Post 264] Prices In China Are Falling: This Is Why You Should Be Worried | Money Mind | Economy


We’ve all felt the pinch of inflation over the past months. But there’s a new worry in the world’s second biggest economy. And it’s got to do with prices falling, rather than going up.