[quote=deadzone][quote=flyer]And, not just “rich people,” dz. We also know a lot of people who, although they were not really in an optimum position to do so during The Great Recession, bet there would be a rebound, so they gathered all of the resources they had, and also invested. Of course, things could have gone either way, but, in retrospect, they are very glad they did.[/quote]
I called this gambling because if one were to read this, it literally said they “Bet” there would be a rebound, with all their resources. That is by definition gambling and risky. I am not criticizing the decision, just pointing out that it is/was a risky decision and only looks good in hindsight.
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News flash. Every investment involves “risk”. The question isn’t whether there is “risk” or “no risk”. There’s risk for every investment with a decent return.
Things that have low to no risk will most likely have shitty returns/results. Why? Because if there is low/no risk, everyone and anyone would seize that opportunity, and then that opportunity would not be there because everyone would be doing it.
Same thing goes with people with shitty credit.
People who have shitty credit pay higher interest rates than people with good credit because people who have shitty credit have much higher risk for not being able to payback the loan, hence one needs to be compensated more for taking on that risk. Otherwise there’s no incentive to take on that extra risk, all else being equal. Why would I want to rent to someone with shitty credit for the same price as someone with 800+ credit score? That’s why people with shittier credit end up paying higher rent prices.
If you want an absolutely clarity and certainty before making financial decisions, it will never be the right time for you to do anything financially meaningful because you will always try to talk yourself out of taking a step forward… You might as well just put all your money in a CD and cash and don’t complain about shitty returns or falling behind financially.
If you can’t tell the difference between those calculated investment risks that one does need to take to move the needle forward, versus betting on red at Vegas, then good luck to you. The next 20 years will be the same as the previous 20 years for you.
You’re looking for perfection to pull the trigger. It’s the direct opposite of people that is completely reckless…. Neither extremes will get one very far in the long run.
The correct decision usually is somewhere in between and one is one’s worst enemy in that decision process.
