Why Rich People LOVE Debt (This Will Open Your Eyes)
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- Опубліковано 18 жов 2024
- Why Rich People LOVE Debt (This Will Open Your Eyes)
Rich people absolutely love debt. While many poor people are doing their best to pay off their debt as soon as possible, the rich are finding ways to increase their debt load. Poor people struggle to grasp this concept. Why would anyone want debt and the interest that comes along with it? Rich people use debt in different ways. See why many of the most successful people prefer being neck deep in debt having mortgages, car loans and many other forms of debt instead of living a debt free lifestyle with no monthly payments. This will open your eyes.
Even good debt has certain amount of risk associated. The question becomes how much risk a person is willing to take.
Using someone else's money ( debt) to increase your own wealth is a skill the rich have mastered.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person.
My advisor is Stephanie Kopp Meeks highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
The downside is... you have to spot opportunities AND not be a worry wart.
In light of the impending recession and the fact that inflation is still far higher than the Fed’s target, few prominent market analysts have expressed their views on how terrible they believe the next downturn will be. I just need advice on what investments to make as l'm attempting to create a portfolio for my 15 year old son that will worth at least $500k before he turns 20
how accurate are these “analysts” predictions? my advice is invest for the long term, drama and speculation loses
@andyvern striking! been actually looking into invt-advisers actually, but the news on global economic turmoil isn't encouraging at all.. please who is this person guiding you? in dire need of good guidance to keep my head above water now
these analysts have shown research that 2-5 trillion dollars in corporate debt matures in the next 5 years at higher rates, bankrupting multiple companies exposed to debt higher than their cash reserves. Not to mention historically high rates will ruin auto loans, mortgages, and could cause liquidity crisis in banks. Nothing was really fixed after 2008, almost everything is overvalued in a bubble. This isn't mere drama or speculation. @@comiccosmic36
💯 agree, I say this all the time, I use good debt to make cash flow while minimizing bad debt. Good debt is a great tool if used properly.
Agreed. A recent example from my own life is that I paid for wedding expenses on my credit card and then transferred the debt to a "0% interest for 18 months on balance transfers" credit card. I then put the same amount of money in a fixed interest savings account at 4.8%. In a year, I can pay off the credit card debt with that money and keep the interest, or do another balance transfer and reinvest the money in the savings account for another year. The debt is fine, because I always have the money to pay the debt if need be, but I am using that money to earn interest. I could also invest the money in the stock market, if I were willing to accept a higher level of risk.
Rich people love debt because they’re rich….after a certain net worth it’s really not that risky to borrow money for future expenses that aren’t going to make you any money because the cash flow from their investment portfolio can likely just pay it all off without having to actually use any of their own assets or invested money to purchase it. It’s a luxury to be at a point where it’s more advantageous to pay interest in borrowing money rather than touching your wealth….and the average person is no where close to that. Which means they shouldn’t love debt, it will not make them rich in the first place.
One caution about deducting interest. Business interest, including for a rental property, is deducted from business income (and then other income). Mortgage interest is deducted only if you itemize deductions. In 2023, the standard deduction is $12,950 for a Single filer, $20,800 for a Head of Household filer, and $27,700 for a couple Married Filing Jointly. Depending on your individual circumstances, you could have mortgage interest that you couldn't deduct because your total itemized deductions are less than the standard deduction.
I’ll have to disagree. Borrowing money is the best way to go broke when real estate prices fall.
Tell that to Robert Kiyosaki
Or mortgage rates sky rocket, ahem...
@@girldaddividendinvestoryou are not Kiyosaki
@@violentjiggler good point. He probably is Mr K
Yeah and he said mortgage m/interest rates were 7-10% so idk
Debt is a chainsaw, proper and skilled use you can cut a lot of trees really fast. Reckless or ignorant use is dangerous and can kill you. An ax will cut trees right fine for you even if not as fast or easy.
Investment and spending are two different things. Investments that provide passive income, such as rental properties is not debt, you can borrow your own money for 1 percent above prime and never spend your money you use your money. You do not pay taxes on borrowed money. My Dad always said your only worth what you owe......I prefer being debt free, I'm old and just don't think about money anymore, all of my needs are met and I haven't balanced a checkbook for more than 30 years.
Thanks a lot for this. I always learn something new each time I watch your videos. I’m glad I have started making a lot of profits as well thanks to Larysa Caba. She’s been of tremendous help to me through out my journey.
I trade with her every week and make huge profits from her. her consistency is crazy.
I have never seen a trader as open and transparent as Larysa Caba with her clients. The way she decides to make a profit for her clients. she allows you to express your fears and she still rests your fears and that is my respect. I don't normally comment on videos, but this word should be included. she is really cool.
It's amazing that you got to know her. she has been a blessing to me and my family.
how can i reach her?
I feel this is quite an easy one. You already have her name which makes it easy for you. Just look up her name online. I’m sure you will come across her. That’s how I found her too.
I've noticed a lot more restaurants closing than opening in my area, and real estate market is a huge bubble at this point. You think you'd do better? Not me. I'll stay away from that. It feels like the deck is stacked against anyone who dares enter.
Ramsey's advice works because most people aren't sophisticated enough to navigate the risk. I'm one of those that can't. Ramsey's advice is completely sustainable even for everyone. Isn't everyone looking for sustainable solutions for everything?
Now get off my completely paid-for lawn.
I hate to hear people say, it will take a long time before you get rich by using this method compared to this method. Most people considered 50 years old to be a long time but the average millionaire is 57 soooooooo, what do you mean a long time. It is not like millionaires are getting rich on average in theirs early to late 20s. It also not like you're going to be extremely old is you strive for a long term way of saving. I just dont get this concept of rushing something and hoping for the best by getting into debt. Young millionaires that made it on (no inheritance or small loan of a million dollars lol)their own are very rare, so we must make a plan no matter what.
Leverage cuts both ways, multiplying gains and losses.
Dave Ramsey is looking for you lol 😂😂😂
What the poor people disagreed and complained on debts was at most they had been either oblivious to personal debt management, and thinking the rich people must have a ton of degrees, or trust experts to do so with calculations, which is not affordable to their own situation on either such degrees or hiring those gurus. Resulted, they got bad debts from the scratch, either by their cost of livings or fradulent schemes promising of windfalls of riches
Leveraging? NO WAY!!! 😡😡😡
Other People's Money.... OPM. Great movie.
OPM is the new OPP.
🤣🤣
Thanks
Everybody have their own definition of rich
You've been listening to too much Robert Kiyosaki.
Please remind me how many times he's had to file for bankruptcy. 😮
Had to file?… or used the bankruptcy laws to file after a risk went south? He’s still very wealthy and I’m sure doesn’t worry about retirement like the rest of us.
Cool video! Id like to add that there are other investment options in businesses like cannafarm ltd as well.
Nice video, very Well explained. At the end, investing is just an arbitrage, get higher return than interest rates.
Bought 9 properties in 2002-3. 6.5% mortgage. Fast forward to today. Renters paid for the mortgages for 20years. I decided to pay them off with money from the sale of my primary house. Cash flow 10k. Zero debt. It’s a force savings account for people like myself that are bad at saving.
Chris I know I am usually pretty critical of your videos. But it’s not because you’re bad. Quite the opposite, it’s because I like your videos and want them to continue to be better.
That being said. This one is perfect. I have no criticisms of this video and you were spot on with everything. I also appreciate the slights to Dave Ramsey. He has financial advice for the lowest common denominator, not the financially sophisticated
Sounds like you have a superiority complex where you want to feel better than everyone else.
Borrowing money is ok , but with out collateral who will give money 😂
why did you fucking increase the volume to 200 300%? i have my volume set at the lowest possible and it sounds normal
--Dave Ramsey has entered the chat....
I dont know, dudes. I think crypto and all these ICOs are just a bubble. Well, crypto is good for transfers and so on, but I dont engage in trading and staking either. Its too risky. My friend recently lost $5000 there. I invest crypto in real business
I know Dave Ramsey loves debt(sarcasm).
Dave Ramsay would not approve 😂
Students loans are not deductible
The gaslighting is real
Rich people absolutely hate debt. Your video is so misleading. You have no idea.
Thx for the info. Its very useful. Last time, I also came across cannafarm ltd, and financially, it has been very helpful for me. So thank you again!