I recently watched Ray Dalio’s video entitled How The Economic Machine Works by Ray Dalio.
Here is the key point:
- Credit causes short-term and long term debt cycle
Here are the 3 important lessons:
- Don’t borrow more than your income
- Don’t earn more than your productivity; otherwise, you might become uncompetitive
- Focus on being more productive as it is what matters in the long run
I highly recommend the above video not only to people working in the finance industry, but also to everyone. I really mean, everyone..
For those who don’t know Ray Dalio, he is the legendary fund manager and founder of Bridgewater Associates.