Nowadays taking up a loan is so convenience that anybody who is taking some salary, and able to live off quite ok is eligible for a loan.

This might sounds like a good thing, but lets take a step back and look at the big picture.

Lets take a more common debt for example, the Credit Card.

A Credit Card is an extremely good tools for saving to the rich and affluent, but its a deadly equipment to most middle class families. Why?

The word is discipline...

To the Rich and affluent, they always pay their Credit Card bills on time, so they don't incur any interest or late charges and at the same time they always spend using credit card, and i mean always. As long as there is a machine that accept card, they will use it, and they will always know what are the latest discount for their card.

Surprising huh, many people just thought rich people will spend like theres no tomorrow, but many are actually very calculative when it comes to spending.

And they will use their Credit Card to earn points and get discount. The point earn, use it to buy a lunch or additional discount to get the things they want.

Whereas the middle class would often incur late charges and even debt with their Credit card. Most people are influenced by shows, where if you have a Card and you buy things that looks classy, you belong to the high level people.

And most often, they will belong to the instant gratification type of people. I will buy things which i like and i want now. AND FAST!

Does that sounds familiar?

Most often then not we always have people around us belong to this type of people, they instant gratification type.

Once a handphone is launched, it is beautiful, and i want it, Within a few weeks, the phone is bought. And if theres another that looks even better, and I will changed it.

whereas for the rich, they think and wait and analyse. They will ask themself what is the function of this phone and why do i need them?

How is my phone now not able to meet up with that phone? Why should I change to that phone?

And once they changed it, you will not see them changed their phone within the next 2 to 3 years.

Now lets summarise what i have said today on loan using Credit Card as an example.

The Rich use Credit Card as a tool for saving and discount, whereas the middle class people use it to satisfied their own material craving.

Ultimately, the only advice I can give is, buy things you need and not those you think you might need.