Don't Be Like The Filthy Poor

Photo by Tim Pannell

I'm sure you're familiar with the filthy rich? The person who lives a miserable life because they got destroyed by the money they possessed.

Well have you heard of the filthy poor? The person who lives a life full of debt so that they can live like a rich person even though they are poor? Yes there is such a person. And these persons borrow money like there's no tomorrow in order to acquire material possessions to project that they are rich, even if they are not.

The filthy poor is an example of someone who abused to power of debt to acquire liabilities instead of assets. Debt, as Robert Kiyosaki put it, is the best leverage that people can use to get ahead financially. However, it is also the worst tool that people can use to get into poverty.

The financially educated people uses debt as leverage to help them get ahead financially. They use it to purchase assets that can earn them money regularly. These assets then will be the one to pay off their debt while also putting money in their pocket. This is what Robert Kiyosaki calls as good debt.

But for most people, they use debt to buy things that don't generate money for them, just like the filthy poor. They see something they want, like a new Plasma TV, a brand new car, a new house, but they don't have the money for it. So they resort to borrowing money in order to be able to afford it. The problem though is that the items they usually buy are items that doesn't put money in their pocket, it takes money out of their pocket. Robert Kiyosaki calls it bad debt.

I was once like that, using credit card to buy things that I couldn't afford. I was disciplined enough though at first to pay off my debts in full so as not to incur interest rates on my debt. But the more I use it, the bigger my debt became, until it became too big for me to pay it in full.

Through hard work and determination though I was able to pay off my debt. It wasn't easy, but I was able to pull it off.

So don't be like the filthy poor, living a life full of debt so that you can live large like a rich person. Instead, be financially educated and use the power of debt to help you achieve financial freedom.