In most big cities why there are more RICH than POOR in debts?

Question

Why must we be rich in debts and not in ----Happiness, Love, Effort, Kindness, Affection & Devotion.

Rich in envy, pride & charity cause anxiety.

Answer 1

I don't know about all rich people, but many people live in a constant state of debt, because they're leveraging something they have to turn that into something greater by borrowing something less.

E.g. If you want to start a business, you may take out a loan for $200k, for a few years you'll be heavily in debt, but in the long run, you'll pay it off and make more than working at your previous job...

Then if that works out for them, they may have liked it and take out another, perhaps even larger loan to start another business, because, why not? It worked the first time. It's just often times much faster to borrow and pay it off than it is to earn it up front.

EVEN buying a house one may take a loan out on so they can have the house sooner than later. Either continue to pay RENT in which one gets nothing to own in return, OR pay interest/loan in which one gets to KEEP a house. It makes sense to take out a loan in that situation, since you're paying either way, you might as well get to keep something.

Plus people with more money have more leverage to take out bigger loans, so they can get a $500k loan where as a poor person may only be able to get $10k, or even none. So in most cases, it's probably not even possible for a poor person to borrow that much...

That's not to say that some poor and even rich people aren't happy without borrowing money, but I think unfortunately, that those people are currently few... Though there numbers may be rising!

Answer 2

It is due to lack of planning of ones budget. excessive use of credit cards is one reason. wastage of surplus funds without proper usage results in debts. this happens for the rich people, where as poor people plan and try to live in their limits.

Answer 3

It's not just restricted to big cities either.

My home town is a point in case. Here the apparently 'rich' use credit, whether it be mortgages, bank loans, credit cards or hire purchase to further obtain property, goods, employees or the visual trappings of wealth such as an expensive flashy car.

They are asset rich but cash poor. They do put hard work into making their ventures succeed but for most, unknown to them, they 'own' very little and spend their lives trapped in materialism.

The truly rich are those who are satisfied with what they are able to afford and rest easy at night not troubled by the wants of the ego in terms of acquisition.

The more we have the more we stand to lose and when your whole ethos is based on aquisition you are standing on very shakey ground.

When we focus on the apects of life that bring happiness without a basis in money such as love of one another, kindness to each other, respect and loyalty for one another and an apreciation of the 'simple things in life' we have a more solid foundation to build our lives on.

Someone once said you cannot have two masters. Those who choose to make money their master have a very difficult boss to please who never appears satisfied and always wants everything paid back with interest.

Answer 4

Those ones are not rich like that Lazarus (friend of Jesus) was.