How To Use Debt to Get Rich – How The 1% Use Debt:
You have probably heard of the saying ‘there is good debt and then there is bad debt’.
First, In this video we are going to compare good debt and bad debt. I will also explain why MOST people should consider all debt, bad debt (like Dave Ramsey).
However, this video is mainly about using debt in a good way. How is this possible?
Rich people use debt to generate INCOME PRODUCING ASSETS. Whether that is a business, investment, real estate, etc. Whenever rich people borrow money, they use it to create MORE MONEY than they borrowed. For example, an average person may borrow 40k to spend on a car. A rich person will borrow 40k to market a product which will make 60k in revenue, therefore a 20k profit. Borrowing money to ‘get ahead’ in the investing/business world is a fundamental strategy the ALL fortune 500 companies use. Coincidence? Nope. Debt is a necessity to get to the top income level on the planet.
There are also a ton of great advantages for borrowing money. Like the massive tax deductions you get for the interest on the loan, the depreciation you get for the investment you bought, and all other business expenses that are related tot he investment/loan. This on its own can lower significantly reduce your taxable income. For example, there are real estate investors out there that make millions of dollars per year, but dont pay taxes at all because of all the deductions (crazy right?).
But remember, before you borrow money, be smart about it and make sure you have enough reserve cashflow to cover all the debt payments, even if the investment fails
Queen of Versailles: https://youtu.be/LQW9Ks0GZUQ
Dave Ramsey: https://www.youtube.com/user/DaveRamseyShow?&ab_channel=TheDaveRamseyShow
Margin Call: https://youtu.be/Y2DqFRsPrns
Stock Market Mastery Course: http://bit.ly/2hurfQO
Wealth Accelerator Course: http://bit.ly/2qxfONO
My Favourite ‘Mindset’ Book: http://amzn.to/2slhmKD
A Book for Motivation: http://amzn.to/2slEbOz
My Favourite Book on Stocks (In 2017): http://amzn.to/2uktY6k
The Most Important Book I’ve Ever Read: http://amzn.to/2tLQ2tF
A Book Influenced my Investing Strategy and Business Strategy: http://amzn.to/2tl44iw
My Camera That I Use: http://amzn.to/2slFwEO
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