3 ms·
Rather than thinking in terms of "How much is owed", it's far more sensible to think about liquidity "How much of my income goes towards servicing debt?" There
by AndrewDucker 8y ago
Rather than thinking in terms of "How much is owed", it's far more sensible to think about liquidity "How much of my income goes towards servicing debt?"
There's a huge difference between "I owe £10k tomorrow" and "I owe £10k over the next 20 years with 1% interest."
When you start thinking in terms of liquidity it makes a real difference to how you think about money.
- lsd5you 8y agoNot a financial expert, but is that really such a difference, and is that what liquidity really means? At the end of the day most short term debt can be converted into longer term debt possibly with some associated cost.
- bittercynic 8y agoConsidering it from both angles would probably be a good idea..