What happens when u over-borrow & overspend.....

In past years, the Greeks, once a great and proud people, have over-borrowed and overspent and they fallen really low now.

Nations are vulnerable to such crises. Cities too. Just look at some American cities that have gone broke. It's a very different picture from the hunky dory one portrayed in American movies & TV shows.


And of courese, people too. I know of a professional who was in the top rung at his workplace in a blue-chip company. Spent excessively on home renovation, on cars, on holidays -- ended up with credit card debts, and IOUs for friends.

Back to American cities.... read about those
9 American cities going broke
 

Sharing this interesting story I found at singaporeanstocksinvestor.blogspot.com/2...operty-as-owner.html

Key lessons.

1. Positive attitude toward work and money led to financial independence.

2. Prudence in financial management = not buying private too early or you will be bogged down by mortgage interest rates on big loan.


I bought a new HDB Executive apartment in 1989 at an age of 31 along with my girlfriend and now my wife. I was not sure if I could pay for it: $150,000. It now sounds terribly cheap.

But my pay then was just $2500 gross! and my wife's $2000.! Prudence and dogged savings coupled with the belief that I must do a good job in evrything I do, helped my promotion.

I paid off the mortage in less than 12 years from a 15 year loan. Debt free by 43years old and a father of 2 boys.

I had a car too. 2nd hand Mercedes 5yrs old paid in cash $20,000.( from bonus) in 1986.
I have since given up the car which gave me 18 years of pleasure. My friends teased me for driving such an old car ( 115 series 1976) But it lasted far longer than their Honda Quintets and Alfa Romeos