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Showing posts with the label credit

Just my thoughts #0524

Being wealthy means your assets grow larger, and their value increases too. The purpose of all economic activity is to secure assets. The more assets you have, the more opportunities you create. Assets represent the total of what one owns and borrows from others. In other words, it is the complete amount of resources available for earning time. Resources serve as the foundation for acquiring additional resources. It’s like using small earthworms as bait to catch fish. Thus, it is said that money makes money. This is referred to as financial income. Income is primarily categorized into earned income and financial income. If you have a substantial earned income but lack financial income, you are more likely to face poverty in the future. - Joseph’s “just my thoughts”

Just my thoughts #0427

Credit not only reduces costs and expenses, but it also boosts revenues; none of the economic resources compares to this. According to World Bank senior researchers Stephen Knack and Philip Keefer, a 10% increase in the confidence index would lead to an average annual economic growth rate increase of 0.8%. Individuals who lack trust and only seek financial gain are more likely to be ruined by money. While credit is an abstract concept, we must not forget that it remains one of the few valuable assets influencing our lives. - Joseph’s “just my thoughts”

Just my thoughts #0408

The most important virtues a business person should possess are, first, keeping my word by myself, even if it seems small; second, not being afraid; and third, having the ability to build structures. Since credit is the essence of money, it plays a crucial role in the exchange of value, starting with keeping one’s word. If you’re afraid, it becomes easy to lie or distort your true self, which can lead to losing credibility with those around you. To collaborate with others, which you can’t do alone in your business and may not fully trust, you must be able to create and manage structures to help grow your business, although with less trustworthy traits. The most critical of these abilities is keeping one’s word. - Joseph’s “just my thoughts”

Just my thoughts #0364

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”

Just my thoughts #0082

People say those who keep their promises lose more benefits than those who don't. Half is right and half is wrong. If you break a promise, you'll gain benefits immediately but lose credit. Assets eat credit and grow. And credit itself is an essential component of assets. - Joseph’s “just my thoughts”

Just my thoughts #0066

If you've kept your word in every situation, borrowing from your neighbors may be more possible when you borrow money from others. That is, your financial trouble doesn't mean that you don't have any money, but it means that you don't have any credit from anyone. Currency has some value according to all people are constantly giving trust in exchangeable value, and money itself doesn't have any value at all. All values come from giving trust to something. Gaining credibility only, even pebbles on the street can be money. - Joseph’s “just my thoughts”