Getting out of debt is overrated
Getting out of debt is overrated. I know having debt can feel like a failure but for the wealthy debt/credit is opportunity. Getting out of debt is overrated, start by understanding and accepting that having credit does not equal having bad debt.
Credit is the ability to borrow something today with an agreement to pay it back later usually with interest. Why do we need credit? Credit allows for large purchases we would need to save a lifetime to purchase. Credit also helps build wealth. At Budget Build Buy we preach obtaining debt/credit responsibly and leveraging financial institutions funds to build wealth. Without the ability to borrow I would not own the properties I own today. My family did not give me $600,000 to buy the properties I own.
Don‘t just get out of debt, build wealth
Getting out of debt is overrated but getting out of debt helps build long term wealth. When is it important to get out of debt? It’s important to get out of debt when you are making a large purchase of a home or an investment property. When I’m making a leveraged purchase of more real estate for my portfolio I eliminate as much debt as possible.
Leverage debt to build wealth
Don’t fear debt and ignore the experts which talk about not worrying about a credit score or that we should run away from credit and debt. That is simply false. Learn to leverage historically low interest rates to build generational wealth. Getting out of debt is overrated and the experts saying that are secretly using debt to build empires or are too stupid or afraid to.
High credit score and little to no assets means nothing
A high credit score and zero to no assets will do little to help you build wealth. Why have a high credit score if you will not benefit from the best rates and perks the banks have to offer. Getting out of debt is overrated but it can help lower your interest rates to nearly zero. Imagine borrowing at 2% per year and obtaining returns on your money at 6% per year. Would you be able to build wealth consistently making 4% net on your money?
Use credit/debt wisely
Don’t be afraid of taking on smart debt and using credit wisely. At Budget Build Buy we have many free resources to teach you how to build generational wealth. Wealthy individuals and successful corporations use debt to build generational wealth and profitable companies.
