Don't spend more then you earn. So why is it bad to destroy your credit rating? Advise is not using credit.
Maybe he wrote the book for Europeans? We don't have a credit rating. Just if you fuck up you get blacklisted and don't receive any credit.
But we don't have a personal bankruptcy system either ;)
Actually it's not that bad to pay yourself first and the government later. You have to eat and make sure you can work. Here we have to pay taxes on invoices even when we didn't receive the money of the invoice yet. So I did the same and didn't pay the tax yet and postponed. It's a bit like taking credit from the government when late you pay interest.
The UK is in Europe, and we certainly have credit rating agencies and personal bankruptcy.
Laws differ between countries in Europe. Please don't try and generalize unless you're certain there are no exceptions, otherwise it may give people incorrect information. Instead, mention your country specifically.
UK doesn't have the euro to start with. They have their own monetary system so it differs from all the other countries in the EU. Yes you live on an Island and are special ;)
The other EU countries just do an audit of existing loans, employment history, income, ...
If you miss payments you end up getting blacklisted for loans in the future. So we use some form of credit rating.
Out of the 27 countries in the EU, 10 still retain their own currency. The UK is in the minority, but it isn't the only country outside the Euro.
So given you've gotten that little detail wrong, forgive me if I'm a little dubious that the UK is the only EU country with personal bankruptcy and credit ratings!
i found it a really sound book. I took away several points, it should change peoples perspective about what money is, or can be.
I good credit rating should be a side effect of good financial practices. The modern day idea seems to be that you should pay to borrow as much as you can afford so that you can qualify to pay to borrow even more money down the road. With good financial practices, your credit rating should be fine, or if things are going so well for you that you dont need to borrow institutionally, your credit rating is irrelevant anyway.
That said, credit is a good financial instrument if used properly.
The best take away was his definition of wealth.... when your income from your assetts pay for your lifestyle.....simple as that. thats wealthy.
"Maybe he wrote the book for Europeans? We don't have a credit rating. Just if you fuck up you get blacklisted and don't receive any credit."
Yes we do, at least some of us (I don't know about each and every Member State). It's not accessible to most people, since it's locked away behind credit rating bureau's models, but rest assured that there are many places that track e.g. how often you've not paid you phone bill on time.
I much prefer the US approach, at least it's out in the open that it exists, and you have a legal right to access your data.
Sounds like you take it coming and going: someone else is holding on to your money, taking advantage of the float, and you on the other hand, have to pay interest to the government on money you don't even have yet.
Don't spend more then you earn. So why is it bad to destroy your credit rating? Advise is not using credit.
Maybe he wrote the book for Europeans? We don't have a credit rating. Just if you fuck up you get blacklisted and don't receive any credit.
But we don't have a personal bankruptcy system either ;)
Actually it's not that bad to pay yourself first and the government later. You have to eat and make sure you can work. Here we have to pay taxes on invoices even when we didn't receive the money of the invoice yet. So I did the same and didn't pay the tax yet and postponed. It's a bit like taking credit from the government when late you pay interest.
So in some contexts maybe good advice?