Debt or Saving?

[Sohboonguan]

He must be very young. It's just a car, need to empty savings meh? Unless premium branded car...then he would be biting off more than he can chew...

 

He might also have fully paid off his car few years back, before he have cash flow problem due to other reason such as euro crisis invesment?

[Sohboonguan]

For the benefit of doubt,

 

A debt is an obligation owed by one party (the debtor) to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.[citation needed]

 

A debt is created when a creditor agrees to lend a sum of assets to a debtor. Debt is usually granted with expected repayment; in modern society, in most cases, this includes repayment of the original sum, plus interest.[1]

 

In finance, debt is a means of using anticipated future purchasing power in the present before it has actually been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.

(http://en.wikipedia.org/wiki/Debt)

 

Saving is income not spent, or deferred consumption. Methods of saving include putting money aside in a bank or pension plan.[1] Saving also includes reducing expenditures, such as recurring costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher.

 

There is some disagreement about what counts as saving. For example, the part of a person's income that is spent on mortgage loan repayments is not spent on present consumption and is therefore saving by the above definition, even though people do not always think of repaying a loan as saving. However, in the U.S. measurement of the numbers behind its gross national product (i.e., the National Income and Product Accounts), personal interest payments are not treated as "saving" unless the institutions and people who receive them save them.

 

"Saving" differs from "savings." The former refers to an increase in one's assets, an increase in net worth, whereas the latter refers to one part of one's assets, usually deposits in savings accounts, or to all of one's assets. Saving refers to an activity occurring over time, a flow variable, whereas savings refers to something that exists at any one time, a stock variable.

(http://en.wikipedia.org/wiki/Saving)

 

Basically, I just wanna find out what is the opinion of the majority on this topic.

:P

[Atonchia]

I only see he had cash flow issue.

 

[Joseph22]

He is wealthy but not rich. I learn this from an angmo long time ago .

Wealthy = lots of assets.

Rich = lots of cash.

Some people are wealthy but no cash

Some full of cash but. Little assets.

Some live like millionaire but not wealthy

Some are millionaire but lead a simple life.

I do have a ex-colleague with over $10m worth of assets but still stay in a rented hdb flat with no car or hp.

He save and invested every cents in properties n rent it out.

Not sure what he see in life as he is already 60 with a Phd son.

At 60 I rather cash in and enjoy life.

 

maybe his form of enjoying life is to have lots of money for his descendants?

[Joseph22]

He is wealthy but not rich. I learn this from an angmo long time ago .

Wealthy = lots of assets.

Rich = lots of cash.

Some people are wealthy but no cash

Some full of cash but. Little assets.

Some live like millionaire but not wealthy

Some are millionaire but lead a simple life.

I do have a ex-colleague with over $10m worth of assets but still stay in a rented hdb flat with no car or hp.

He save and invested every cents in properties n rent it out.

Not sure what he see in life as he is already 60 with a Phd son.

At 60 I rather cash in and enjoy life.

 

maybe his form of enjoying life is to have lots of money for his descendants?

[Jamesc]

I would like to borrow $200 from TS.

 

I would not pay him back as I have no debts with him

 

cos I have a fully paid up car and home.

 

 

I see that 6 people also say no debt,

 

i would like to borrow $200 from each of them too!

Edited August 28, 2012 by Jamesc

[The_Bear]

I think it is highly likely Mr. B is gay.

[Celicar]

I would like to borrow $200 from TS.

 

I would not pay him back as I have no debts with him

 

cos I have a fully paid up car and home.

 

 

I see that 6 people also say no debt,

 

i would like to borrow $200 from each of them too!

That's why Singpost last time say, if you have any cashflow problem, Ask James!

[Jamesc]

That's why Singpost last time say, if you have any cashflow problem, Ask James!

Haha!

 

[Nemo6089]

Wah! This very the cheam.

 

Have asset

Have debt

No liquid cash

 

= no cash cannot pay debt = bad reputation = chow kuan still drive a car around without paying off his debt first,