How to Leverage Good Debt to Create Wealth!
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Faster Freedom explains the difference between good debt and bad debt and how understanding this difference can help create wealth and financial freedom. Good debt goes up in value and produces cash flow, while bad debt goes down in value and does not produce cash flow. He provides three examples of each. Bad debt includes credit card debt, car loans, and personal mortgages, while good debt includes credit card debt used for real estate investment, business debt, and rental debt. He emphasizes that all wealthy people and companies start out with debt and that being without debt is great but not a way to create wealth. Borrowing money to expand on a proven concept is a way to create wealth, and he provides examples of successful companies that started in garages and borrowed massive amounts of money to expand their proven concepts and create more cash flow. Leveraging current money and other people's money is the key to creating wealth. He acknowledges that bad debt is not necessarily a bad thing and that he has bad debt himself, but he uses it for things like buying a new truck or building a new house. The important thing is to understand the difference between good debt and bad debt and use them appropriately to create wealth. Faster Freedom shares that he is currently in $19 million worth of debt, but it allows him to own $32 million worth of real estate and create a net worth of $13 million.
Faster Freedom explains the difference between good debt and bad debt and how understanding this dif