26 December, 2013

1-5 finance: Tip, The rule number 7

"Don’t work with borrowed money. When someone goes completely broke, it is almost always because he used borrowed money ....

In many cases the individual was already quite rich but he wanted to pyramid his fortune with borrowed money ....

Using margin accounts and mortgages rather than your own puts you at risk to lose more than your original investment ....


If you handle all your investments on a cash basis, it is virtually impossible to lose everything no matter what might happen in the world."