That's not what I was talking about.....I was talking specifically about being a debtor on depreciating assets. And a debtor is worse than a saver. And the idea of borrowing at 3% worked for a small window in time. While I agree with your sentiment, it also got people into a lot of trouble....they took out LOC's at 3%....but the rates were variable. Not much of those rates have jumped to 8-9%. They are getting CRUSHED now. The principles I teach in this video protect you from either scenario and allow you to do exactly what you are talking about if you want...but it also protects you against getting stuck in a bad spot.
@@LIFE180 money is fungible. This means it doesn’t matter if the “asset it is on is depreciating” like you said. What matters is that the interest rate is below return on other assets on balance sheet.
@@Bobventk once again ...that's fine. I will never dispute that if I can get debt at 3% and then invest at 10%, that you shouldn't do it. But once again, I don't view that as a debtor.... Your net worth on the equation is going up. As is your cash flow most likely. You are taking something I intentionally tried to break down and simplify and taking it to 2nd level thinking, which I intentionally tried to avoid for the purposes of the target of this video - as the goal is to simplify before adding in more high level planning
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“Debtor is the worse thing you can do” not necessarily… if you can borrow at 3% and invest at 10%, debting makes sense
That's not what I was talking about.....I was talking specifically about being a debtor on depreciating assets. And a debtor is worse than a saver. And the idea of borrowing at 3% worked for a small window in time. While I agree with your sentiment, it also got people into a lot of trouble....they took out LOC's at 3%....but the rates were variable. Not much of those rates have jumped to 8-9%. They are getting CRUSHED now.
The principles I teach in this video protect you from either scenario and allow you to do exactly what you are talking about if you want...but it also protects you against getting stuck in a bad spot.
@@LIFE180 money is fungible. This means it doesn’t matter if the “asset it is on is depreciating” like you said. What matters is that the interest rate is below return on other assets on balance sheet.
@@Bobventk once again ...that's fine. I will never dispute that if I can get debt at 3% and then invest at 10%, that you shouldn't do it.
But once again, I don't view that as a debtor.... Your net worth on the equation is going up. As is your cash flow most likely.
You are taking something I intentionally tried to break down and simplify and taking it to 2nd level thinking, which I intentionally tried to avoid for the purposes of the target of this video - as the goal is to simplify before adding in more high level planning
@@LIFE180 alright. Tbh you just lost me when you called the stock market a casino so was hard to give you a charitable interpretation