Comments on: Why do you need to borrow money?

By: Elevic Pernis

Elevic Pernis — Sat, 29 Aug 2009 08:16:13 +0000

The irony I see is that as you become richer, the more you become proficient with using Other People’s Money. Starter’s like me must settle with saving, own equity, learning. After some profits later and some experience, I can really use OPM and my banker would be glad.

By: crazy blogger

crazy blogger — Fri, 28 Aug 2009 15:09:41 +0000

good post on good debt vs bad debt

By: mrsweetsnowcones

mrsweetsnowcones — Mon, 24 Aug 2009 04:43:27 +0000

nice posting again…as 50 CENT has stated in one of his songs that “GET RICH OR DIE TRYING”..

By: marvin

marvin — Fri, 21 Aug 2009 02:43:02 +0000

good point on OPM – other people’s money!

hi tyrone! im lurking on your site and im loving ur posts/articles. id be hanging around here more often as im fascinated with ur sound financial advise.

By: Irej

Irej — Thu, 20 Aug 2009 19:06:21 +0000

For me i don’t want to borrow money as capital for a certain business.. kasi yung interest malaki laki rin.. lalo na sa Bumbay.. 5-6… ganun din sa mga nagkukunwaring bumbay 10%.

I rather to choose small business, yung katamataman lang yung fit sa badjet. at least walang iniisip na babayaran, walang sakit sa ulo.. higit sa lahat, makakatulog ng mahimbing.

Napadaan lang Mr. Millionaire.

By: Kevin Quinlan

Kevin Quinlan — Thu, 20 Aug 2009 14:11:57 +0000

I agree that using other people’s money to create wealth is a great idea but on the same note most succesful startups fail a few times before actually finding a business that works. This means expect to lose money on your first few businesses and go into debt. Therefore borrow but don’t go overboard especially if you are new to the idea.

By: elmot l PinoySoundingBoard

elmot l PinoySoundingBoard — Thu, 20 Aug 2009 07:28:34 +0000

good point bro, esp on the bad and good debt.

hey, ano nga pala, ask ni chris if you will attend the wordcamp?

@chris: magkano ba bayad?

By: livingstain

livingstain — Thu, 20 Aug 2009 07:10:19 +0000

AY PARANG NAALALA KO YUNG SUBJECT NAMIN NUNG COLLAGE SA MONEY CREDIT AND BANKING… TSAKA TVM.

By: Chris | Crisiboy.Com

Chris | Crisiboy.Com — Thu, 20 Aug 2009 06:33:57 +0000

bro attend ka ba wordcamp???kitakits tyo dun..kaso di pa ko nagbabayad eh..hehehe

By: Bellar

Bellar — Thu, 20 Aug 2009 05:08:11 +0000

To make our business becoming larger fast, the most common is by borrowing money from bank/financial companies. I think it should be done as long the debt is a leverage debt, used to productive things (make money more money) for our prospective business. Usually the result is much better compared with biz man who conventionally use their own money.
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Anyway, in my view – several factors shall be taken into consideration :
- We have to make sure ourselves that the business has good prospect (personal confidence).
- maintain low level debt service ratio (all debt / all net revenue before obligation), ideally < 30%.
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By those two rules, it’s quite safe to take some credit facility.

By: Tyrone

Tyrone — Thu, 20 Aug 2009 00:11:58 +0000

I agree reyjr. After all, life is full of risks and uncertainties. But there is a term “calculated risk”. We can minimize risk. In order to do that, we must educate more ourselves before we plunge into a certain business or investment. Educating ourselves lessens our fear of losing the money we are risking.

By: reyjr

reyjr — Wed, 19 Aug 2009 18:36:23 +0000

this is prudent advise tyrone.
still, borrowing money is a risk, if your investment does not produce it’s expected return, then you pay for the interest and capital yourself, as opposed to just losing the money yourself.

then again, risk big, win big right? personally to me, this is all still theoretical. i’m still looking for the right opportunity to try it out. hehe. any suggestions?