Key Business and Wealth: Use Other People’s Money
August 4th, 2010 | 
Author: One of the keys to success in business or achieve financial wealth is know how to handle other people’s money, that is, into debt to start projects, growing business, or acquire investments.
There are debts known as “bad debt” that only serve to blind us to grow financially, for example, debts generated by credit cards from month to month but not paid, debts arising from departmental cards, personal loans to buy the car ask the furniture, etc.
But other debts known as “good debt” are useful to grow financially, and even necessary to have financial success, for example, debts incurred to start or grow a business, or to purchase an investment.
The “bad debt” we lose money, while “good debt” makes us earn more money than it costs us.
To be truly successful in business and achieve financial wealth is necessary to exit and avoid the “bad debt” and acquire “good debt”, i.e. using other people’s money.
Almost everyone who has achieved success in business has been able to use “good debt” to launch their projects and grow their business.
And nearly everyone who has achieved financial wealth has tons of “good debt”, as opposed to people having financial problems, which often have tons of “bad debts.”
To use other people’s money, first you need a great idea and a business plan where we write how to make money with this idea, what it will cost to implement it, and what will be the return that we generate.
Then it is necessary to find someone to lend us money to implement our idea, whether banks or financial institutions lend money they do not accept (very likely if we are just beginning), we could find investors, partners, relatives or friends.
About when to borrow money, it is best done when we are just starting, it is advisable to start with the little money we have, or the money we get we get no pressure from having to return on time, and then later seek financing.
About how long one must commit to a debt, it is advisable to look for the longest time, try to get as much money as possible for the longest time possible, whether twenty or thirty or fifty years.
If one makes decisions based on emotion and is the type that craves security and worries about the long-term financial obligations, you may want to ask for money to a shorter term; however, if you want to achieve financial success, it must overcome.
Finally, before borrowing money, it is necessary to ensure that our gains are much greater than the cost of debt, i.e. we will be able to repay the debt, not borrow money if we are not sure they go be able to pay.
If it’s bad to lose your own money, you lose even more money from others, we must be careful when borrowing money, but not to the point of being extremely cautious.
Using other people’s money is one of the main keys to success in business, and one of the main requirements in the pursuit of wealth.
