How to View Debt
Ever heard that “debt is evil?”
I heard this growing up and it has cost me thousands of dollars.
Here’s what I mean:
Back in 2011, I had just switched companies.
I turned in my company car.
And had to buy a new car as I didn’t have one😆
I decided on a brand new Toyota Camry fully-loaded.
Just over $30k.
I thought I was smart but NOT taking a loan out.
I bought it cash.
A few years later I learned about leveraging debt.
How smart investors trade low interest rates for greater gains in the stock market, real estate, or increasing high value skills.
I thought back to my car situation.
I could have gotten a loan at 2.99% over 5 years.
I looked at my returns over the last 4 years for my stocks.
20%+ gains on average per year.
If I had invested that $30K into the market?
Would have turned into over $60K.
Even when I backed out the 2.99% interest, I would have yielded a 17%+ GAIN.
A net difference of over $20,000 meaning..
That single decision cost me over $20,000 🤢
And if I had invested in skill development?
I guarantee you it would have cost me $100,000+ 🤮
I was ignorant to how money works and how life works.
Ignorance is not bliss.
Ignorance comes at a real cost.
So remember, money and debt are just tools.
They're not evil.
They're not bad.
They're just tools based on how you use it.
Both are wonderful servants but terrible masters.
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