Are you richer than a homeless person?
You might immediately think you are, but think twice. The homeless person probably doesn't have any debt to worry about, they don't have any bills, their net worth may in fact be slightly positive.
How deeply in debt are you, and how much of that is backed up with some sort of collateral that's worth at least as much as that debt? How much debt you have is for previous consumption rather than for hard goods that'll last?
This question changed the way I manage my personal finances.
You might immediately think you are, but think twice. The homeless person probably doesn't have any debt to worry about, they don't have any bills, their net worth may in fact be slightly positive.
How deeply in debt are you, and how much of that is backed up with some sort of collateral that's worth at least as much as that debt? How much debt you have is for previous consumption rather than for hard goods that'll last?
This question changed the way I manage my personal finances.
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