Good Debt Is a Thing

I want to talk about a good form of debt. Now, let’s say that you took my advice from the last video and you’ve gotten rid of all of that bad debt that’s been weighing you down. Let’s also just assume that you were paying somewhere around $1,000, a month in interest that you’re no longer having to pay. Instead of paying for interest, you’re now investing that $1,000.

Let’s say you’ve been doing that for a few months or a couple of years, and now you’ve built up a nest egg of $40,000. Well, $40,000 still isn’t enough to go out and buy a piece of real estate, for example, at least not in most markets.

What you need to do is bring on debt. Bringing on real estate debt is a tool that is a positive thing. The power of tools to make something happen that is otherwise much harder to happen. This thought is similar to purchasing assets and having debt in order to make money. Watch the video below to find out more about this concept.