A while back, I saved up money to buy a used car but decided to try something different. I used the money to invest in cryptocurrencies instead. It was a big risk because that was all the money I had. At first, nothing happened and I was worried. But after a few months, the value of my investments started going up. By the end of the year, I had made enough money to buy two brand new cars. I only bought the used car I originally wanted though... that new car smell isn't worth the 30% instant depreciation. Taking that risk taught me a lot about investing and trying new things. It was definitely worth it!
Thanks for sharing your story! It's always inspiring to hear about success stories in the world of crypto investing. And with experts like Abel Dorsey offering guidance, the possibilities are endless.
It's comforting to know that there are experts like Abel Dorsey who can help navigate the complexities of the crypto market. With his guidance, investing in cryptocurrencies becomes much less daunting.
Absolutely! Abel Dorsey's expertise can provide invaluable insights for those looking to enter the world of crypto investing. It's always best to learn from the pros.
I've been considering investing in cryptocurrencies, but I'm not sure where to start. After hearing about your success, maybe it's time I seek out some guidance from experts like Abel Dorsey.
I second that! Abel Dorsey's knowledge and experience in the world of crypto make him a trusted advisor for anyone looking to maximize their investment potential.
I believe that the two most important things needed to earn money are the right information and, ironically, the money itself, because that's all it takes to make a good investment.
You're right, that's why I would like to give vital information here now. 6 months ago, I had the opportunity to be introduced to a financial expert called Mr. Larry Kent Burton, he specialises in investments and I was able to earn about €24,000 in profit
Of course, he is gaining popularity every day, a man of his talent should be well recognised, not all random people can give accurate predictions on both the cryptocurrency and foreign exchange market.
You're right my friend, he earns money on trading and investments without effort, I've been trading with him for 2 years now, sometimes we can have bad days but we're still benefitting at the end of the week, I'm happy to have met him
Used to save my scholarship in high school and give out loans to classmates with interest. Can't remember why I stopped but I had enough saved to pay first year of college myself, the I got a job and paid rest of college myself. Never used a CC for anything except a float.
Debt has been my best friend growing my business. In my family it was looked down upon so much, they worshiped being debt free, but I followed the math- and am better off for it.
Debt makes sense for things that bring an income. They don't make sense when it comes to personal purchases. The issue is most people can't access debt for things that produce rather than consume.
thing for me is that i don't want to deal with liabilities that come with owning businesses. seriously i think the most i would consider going for is a vending machine, besides that all passive interest bearing accounts.
Credit Card in the US is so weird. In Brazil, you get a credit limit, a monthly cut date and a due date for payment. You only pay interest (and it's insanely high) if you don't pay your debt up until the due date. So long you're aware about your expenses and your due dates, you should be good. The credit card apps are easy to define your card's limit as well, so if you get a limit that's actually higher than your monthly revenue, you can just slide down the limit of your card to avoid using more than you can actually pay per month. Knowing how to control credit cards and paying on their due date means no surcharge and you can even rack some mileage points or cash back around here. I would never use a card that makes me pay interest if I'm on schedule to my payments.
I don't know if it's different in Canada or if Americans can do this... I called my credit card company and told them I was thinking of cancelling it because the interest was too high (it was at 18%). In order to keep me as a customer, they lowered it to 4%. Now, I know Canadian banks work on a different model than yours - we use a model similar to the Brits, if I'm not mistaken - and my card was issued by my bank. This might not work with all credit card companies. However, it's worth calling them and asking them if there is something they can do for you if you are drowning in debt and are considering cutting your cards. Maybe they will accept some sort of compromise.
Thank you for explaining debt! I was definitely working on an old school paradigm. I’ve just ordered your book … can’t wait till it arrives on March 8th!
Your video made sense to me. I am 57, the only debt that I truly have is my credit card. My motorcycle is paid off, no mortgage or any of that. The only things I have are the usual bills, phone, internet, utilities. I will be paying my card off in four months.
The reason that student loans are a big concern is that, unlike credit card debt, student loan debt can not be erased by bankruptcy. It used to be so able, but then they changed the law to forbid it. Student loans therefore are unlike any other kind of debt, and people with student loans realized this far earlier than you did.
Another point about student loan debt is that if you're on an income based repayment plan, the most you're going to pay on undergrad loans is 5% on anything you make above 225% of the poverty line (10% if it's grad school loans), so the real question is, "will my degree let me earn at least 5-10% over what I would earn without it?" In most cases, the answer is probably yes.
I'm pretty sure alot of people who started small businesses that took off fail because they didn't expect that they would first have to go into debt in order to grow.
To add a point about paying off debt in the order of interest rate. There comes a point where the investments available to you will earn a greater return than some of those debts. If you invest in a stock market index fund, that number has historically been ~10%. Once you get to debts that have an interest rate less than 10%, you're probably better off in the long run if you pay only what you have to pay toward those debts and invest anything else in the stock market. You'll make the spread between the interest rate on that debt and the return from the investment.
What about a giant loan ($20k+++), low interest, but will significantly increase your paycheck if you pay it off? You can also pay it off with essentially low impact to anything.
Depends what else you could do with the money. If your $20k loan is at 5% or less it doesn't make sense at a young age to pay extra since the long term average of the stock market is around 10%. Even putting it into a bank that offers 5% interest is better than paying off a 3% loan early. Put it back in the bank and then use the spread to pay off the loan.
Maybe im a simpleton. But as long as your debt is less than your income, NET. Thats manageble "debt" I dont like car payments. Credit cards are ok. But pay it off to $0.00 every month. Get to the point your paying your hard bills, rent/mortgage utilities Phone cable. With one pay check a month. Then you got 3 to 4 more pay checks a month for saving investing etc. My goal for next year is pay all monthly bills a month before their due. Jan. in Dec. Feb in jan. Still gotta clean up from my second marriage. $10 mth here $300 mth there. Never had any extra. Rubber band was stretched TIGHT. So i got a Great Career making near top dollar. I got plans for next year.
Debt is an amazing wealth building tool. People who don't understand that will never be wealthy. I'm in my mid-40s and financially free with 150K/year passive income and I never made more than 100K/year in my whole career. Yes, I've been lucky with the real estate market the last decade, but I would have gotten here regardless only a bit later maybe. Debt to fund cash flowing assets is an insane wealth multiplier.
Debt Is Money As An Asset Issued By The Debtor, The Creditor Is The One Who Buys The Asset & Sells You Back Your Own Debt As Money Kinda Strange Right This Is How Specific Accounting Practices Occur Its All About Client Rules
If you paid more in interest based on your personal risk my interest on my line if credit would be 5% instead of 12. Instead your interest is based on everyone elses risk and you get lumped in with the high risk people.
I've never been in debt. The only time my account was in the negative, was when I got my first account at the age of 13 years old, and I bought some candy (that was 1,3€ in the negative). At the age of 33 I finally bought my own apartment (the price tag was around 100.000€) after renting apartments around the world working, studying and living the life. But I was taught at a young age, the importance of money, how much was "enough", how to get there and how to keep it.
I love how he subtly tries to tell everyone he has an amex platinum.. For the average person. Debt is your enemy.. this advice is not your friend. these are the guys who will tell you to take out a loan to trade.. Its a mugs game..
Looking to get into the wealth management space. I’m 24 and not sure where to start. I want to start a career. I’m eager to learn and coachable Any ideas? Thanks,sir!
I personally like Dave ramsays approach to not having any revolving debt. Where we differ opinion is I think it’s necessary to use it because I’m not going to buy a $1M house cash in my area.
Dave doesn't forbid mortgages, although he does recommend 15 year mortgages, which makes it really difficult to buy a house these days since everyone else is using a 30 year and bidding everything up.
Okay I’m about to watch the video, but before I do, the majority-and by majority I mean like 95%-of my debt is student loans. I’m going to assume he doesn’t mean leveraging that. It seems like those are just… awful, and serve no purpose after one’s degree. 😂
If you put money into your 401k or IRA and invest instead of paying extra on your student loans that is in my opinion leveraging your student loan. Not paying extra on a loan gives the same result as taking out a new loan for the amount you didn't pay off. If your student loans or mortgage is at a very low rate it makes sense to put as much into retirement investments as possible instead of pre paying the loans, especially the younger you are.
Don't stress on them. Use the tools available for them. Forbearance, income based repayment etc. People spend way too much time worrying about student loans. They are low interest and frankly have very little effect on credit as long as you don't have missed payments. Even when I was making like 40k a year my income based repayment with two kids was almost nothing. Instead save money from making extra payments in another form as others suggest and then using that to get a low interest loan, use that loan to make money. Money is a tool. Nothing more. Debt is also a tool. Money does very little for you. Even multi-millionaires like Nick would not use their own money for a business venture? Why would they when they could play with the banks money and if it goes sideways they have ways to mitigate that. Its about risk management. So instead of making massive payments or multiple payments relax on the student debt and put that into Dividends, Stocks, Bonds, CD's, IRA's (Roth) and 401k's to build an asset portfolio then use that to secure a loan to buy something already successful. Think of it like this. You want to buy a car wash for $150,000.00 and say you have $30,000.00 you can get from assets, selling things, saving, 401k etc. You go the bank with a business plan, get a good valuation on the business and make sure you can cover the cost. The bank offers you (lets say higher than Nick's 5% not everyone gets such glorious interest) lets say 11% which is quite bad. So they offer you 11% on $150,000.00 and you secure it with a $30,000.00 cash security. As long as the business makes a return of GREATER than the payments on the 11% in Net Profit (arguable I use EBITDA but Im not going into that here) then you are making a profit on the loan and thus have used debt. I do not do any venture where I have a buffer of less than 5% so if the business was not making at least 16% over the cost of the debt I would not touch it but I am more risk averse than these younger cats out here. Nick feel free to contradict me on anything here that is incorrect or specious in some way as I am by no means the expert you are (clearly I am not in the seven figure club yet... yet)
I disagree with one point he made. Student loan debt would be the first thing I would pay off, if not doing some sort of balance transfer for pay off the student loan. At least if you had other debt but student loans were paid off, you could discharge all your debt through bankruptcy. Student loan debt is not dischargeable in bankruptcy.
Hello everyone, I've been researching investment brokers, and I'm really interested in working with someone trustworthy and reliable. With the recent market downturn, I'm looking for a broker who can help me turn things around and make a profit. Can anyone tell me about their experiences with any investment advisor
A while back, I saved up money to buy a used car but decided to try something different. I used the money to invest in cryptocurrencies instead. It was a big risk because that was all the money I had. At first, nothing happened and I was worried. But after a few months, the value of my investments started going up.
By the end of the year, I had made enough money to buy two brand new cars. I only bought the used car I originally wanted though... that new car smell isn't worth the 30% instant depreciation. Taking that risk taught me a lot about investing and trying new things. It was definitely worth it!
Thanks for sharing your story! It's always inspiring to hear about success stories in the world of crypto investing. And with experts like Abel Dorsey offering guidance, the possibilities are endless.
It's comforting to know that there are experts like Abel Dorsey who can help navigate the complexities of the crypto market. With his guidance, investing in cryptocurrencies becomes much less daunting.
Absolutely! Abel Dorsey's expertise can provide invaluable insights for those looking to enter the world of crypto investing. It's always best to learn from the pros.
I've been considering investing in cryptocurrencies, but I'm not sure where to start. After hearing about your success, maybe it's time I seek out some guidance from experts like Abel Dorsey.
I second that! Abel Dorsey's knowledge and experience in the world of crypto make him a trusted advisor for anyone looking to maximize their investment potential.
I believe that the two most important things needed to earn money are the right information and, ironically, the money itself, because that's all it takes to make a good investment.
You're right, that's why I would like to give vital information here now. 6 months ago, I had the opportunity to be introduced to a financial expert called Mr. Larry Kent Burton, he specialises in investments and I was able to earn about €24,000 in profit
My friend, I think your life was changed for good just because you were lucky enough to have this information, am I right?
You're right my friend, all it takes to earn money is information and the money itself, my investments with Mr. Larry Kent Burton proved it to me
Of course, he is gaining popularity every day, a man of his talent should be well recognised, not all random people can give accurate predictions on both the cryptocurrency and foreign exchange market.
You're right my friend, he earns money on trading and investments without effort, I've been trading with him for 2 years now, sometimes we can have bad days but we're still benefitting at the end of the week, I'm happy to have met him
I've been trying to explain this to family for years. This definitely puts it in terms they will understand.
Used to save my scholarship in high school and give out loans to classmates with interest. Can't remember why I stopped but I had enough saved to pay first year of college myself, the I got a job and paid rest of college myself. Never used a CC for anything except a float.
What did you do for collateral?
@@crawfordkmcdonald7313
They held their pets hostage
Debt has been my best friend growing my business. In my family it was looked down upon so much, they worshiped being debt free, but I followed the math- and am better off for it.
Same here, trying to switch my mindset.
Debt makes sense for things that bring an income. They don't make sense when it comes to personal purchases. The issue is most people can't access debt for things that produce rather than consume.
Security vs take a leap of faith. The issue for me is, fear of failure. Im getting better. In stocks now. …with 10% of my net worth. Lol.
thing for me is that i don't want to deal with liabilities that come with owning businesses. seriously i think the most i would consider going for is a vending machine, besides that all passive interest bearing accounts.
Credit Card in the US is so weird. In Brazil, you get a credit limit, a monthly cut date and a due date for payment. You only pay interest (and it's insanely high) if you don't pay your debt up until the due date. So long you're aware about your expenses and your due dates, you should be good.
The credit card apps are easy to define your card's limit as well, so if you get a limit that's actually higher than your monthly revenue, you can just slide down the limit of your card to avoid using more than you can actually pay per month.
Knowing how to control credit cards and paying on their due date means no surcharge and you can even rack some mileage points or cash back around here. I would never use a card that makes me pay interest if I'm on schedule to my payments.
Im in the US and it is exactly the same
I don't know if it's different in Canada or if Americans can do this... I called my credit card company and told them I was thinking of cancelling it because the interest was too high (it was at 18%). In order to keep me as a customer, they lowered it to 4%. Now, I know Canadian banks work on a different model than yours - we use a model similar to the Brits, if I'm not mistaken - and my card was issued by my bank. This might not work with all credit card companies. However, it's worth calling them and asking them if there is something they can do for you if you are drowning in debt and are considering cutting your cards. Maybe they will accept some sort of compromise.
loved the video, I wish more people talked about debt like this, because I meet so many people who think debt is the enemy
Great video, as always! I prefer the avalanche approach to paying debt too
Thank you for explaining debt! I was definitely working on an old school paradigm. I’ve just ordered your book … can’t wait till it arrives on March 8th!
Your video made sense to me. I am 57, the only debt that I truly have is my credit card. My motorcycle is paid off, no mortgage or any of that. The only things I have are the usual bills, phone, internet, utilities. I will be paying my card off in four months.
The reason that student loans are a big concern is that, unlike credit card debt, student loan debt can not be erased by bankruptcy. It used to be so able, but then they changed the law to forbid it. Student loans therefore are unlike any other kind of debt, and people with student loans realized this far earlier than you did.
Nick could you make a video about secure asset/debt? I never knew I could use my asset as collateral and interested in doing so. Thank you.
Another point about student loan debt is that if you're on an income based repayment plan, the most you're going to pay on undergrad loans is 5% on anything you make above 225% of the poverty line (10% if it's grad school loans), so the real question is, "will my degree let me earn at least 5-10% over what I would earn without it?" In most cases, the answer is probably yes.
I'm pretty sure alot of people who started small businesses that took off fail because they didn't expect that they would first have to go into debt in order to grow.
To add a point about paying off debt in the order of interest rate. There comes a point where the investments available to you will earn a greater return than some of those debts. If you invest in a stock market index fund, that number has historically been ~10%. Once you get to debts that have an interest rate less than 10%, you're probably better off in the long run if you pay only what you have to pay toward those debts and invest anything else in the stock market. You'll make the spread between the interest rate on that debt and the return from the investment.
For real, THANK YOU.
What about a giant loan ($20k+++), low interest, but will significantly increase your paycheck if you pay it off? You can also pay it off with essentially low impact to anything.
Depends what else you could do with the money. If your $20k loan is at 5% or less it doesn't make sense at a young age to pay extra since the long term average of the stock market is around 10%. Even putting it into a bank that offers 5% interest is better than paying off a 3% loan early. Put it back in the bank and then use the spread to pay off the loan.
Maybe im a simpleton. But as long as your debt is less than your income, NET. Thats manageble "debt"
I dont like car payments. Credit cards are ok. But pay it off to $0.00 every month. Get to the point your paying your hard bills, rent/mortgage utilities
Phone cable. With one pay check a month. Then you got 3 to 4 more pay checks a month for saving investing etc. My goal for next year is pay all monthly bills a month before their due. Jan. in Dec. Feb in jan. Still gotta clean up from my second marriage.
$10 mth here $300 mth there.
Never had any extra. Rubber band was stretched TIGHT. So i got a Great Career making near top dollar. I got plans for next year.
📠
You probably get paid weekly to have an extra 3 to 4 checks a month
Love this guy's energy
Gotta spend money to make money, doesn't mean the money has to be yours.
Debt is an amazing wealth building tool. People who don't understand that will never be wealthy. I'm in my mid-40s and financially free with 150K/year passive income and I never made more than 100K/year in my whole career. Yes, I've been lucky with the real estate market the last decade, but I would have gotten here regardless only a bit later maybe. Debt to fund cash flowing assets is an insane wealth multiplier.
Debt Is Money As An Asset Issued By The Debtor, The Creditor Is The One Who Buys The Asset & Sells You Back Your Own Debt As Money Kinda Strange Right This Is How Specific Accounting Practices Occur Its All About Client Rules
margins....name of the game....
What are your thoughts on using lower interest loans/lines of credit to pay off your higher interest rate debt?
Obvious. That is why you don’t pay for mutual fund investments with a credit card.
@@Egilhelmson That's not an answer.
This is like Dave Ramsey if he actually knew how to you make money and not just put it in a bank account and wait until you are 70.
If you paid more in interest based on your personal risk my interest on my line if credit would be 5% instead of 12. Instead your interest is based on everyone elses risk and you get lumped in with the high risk people.
I've never been in debt. The only time my account was in the negative, was when I got my first account at the age of 13 years old, and I bought some candy (that was 1,3€ in the negative). At the age of 33 I finally bought my own apartment (the price tag was around 100.000€) after renting apartments around the world working, studying and living the life. But I was taught at a young age, the importance of money, how much was "enough", how to get there and how to keep it.
It's currently my enemy. But I'm clawing my way out.
I love how he subtly tries to tell everyone he has an amex platinum.. For the average person. Debt is your enemy.. this advice is not your friend. these are the guys who will tell you to take out a loan to trade.. Its a mugs game..
What if I have no debt but I’m still broke as hell..
First!
Looking to get into the wealth management space. I’m 24 and not sure where to start. I want to start a career. I’m eager to learn and coachable Any ideas? Thanks,sir!
Apply for a internship
Whats your thought on 0% interest offer for credit cards?
They're great. Just be sure to pay it off before the 0% ends
Takes money to make it.
I personally like Dave ramsays approach to not having any revolving debt. Where we differ opinion is I think it’s necessary to use it because I’m not going to buy a $1M house cash in my area.
Dave doesn't forbid mortgages, although he does recommend 15 year mortgages, which makes it really difficult to buy a house these days since everyone else is using a 30 year and bidding everything up.
Okay I’m about to watch the video, but before I do, the majority-and by majority I mean like 95%-of my debt is student loans. I’m going to assume he doesn’t mean leveraging that. It seems like those are just… awful, and serve no purpose after one’s degree. 😂
I talk about student loans in the video
If you put money into your 401k or IRA and invest instead of paying extra on your student loans that is in my opinion leveraging your student loan. Not paying extra on a loan gives the same result as taking out a new loan for the amount you didn't pay off. If your student loans or mortgage is at a very low rate it makes sense to put as much into retirement investments as possible instead of pre paying the loans, especially the younger you are.
Don't stress on them. Use the tools available for them. Forbearance, income based repayment etc. People spend way too much time worrying about student loans. They are low interest and frankly have very little effect on credit as long as you don't have missed payments. Even when I was making like 40k a year my income based repayment with two kids was almost nothing. Instead save money from making extra payments in another form as others suggest and then using that to get a low interest loan, use that loan to make money.
Money is a tool. Nothing more.
Debt is also a tool.
Money does very little for you. Even multi-millionaires like Nick would not use their own money for a business venture? Why would they when they could play with the banks money and if it goes sideways they have ways to mitigate that. Its about risk management.
So instead of making massive payments or multiple payments relax on the student debt and put that into Dividends, Stocks, Bonds, CD's, IRA's (Roth) and 401k's to build an asset portfolio then use that to secure a loan to buy something already successful.
Think of it like this. You want to buy a car wash for $150,000.00 and say you have $30,000.00 you can get from assets, selling things, saving, 401k etc. You go the bank with a business plan, get a good valuation on the business and make sure you can cover the cost. The bank offers you (lets say higher than Nick's 5% not everyone gets such glorious interest) lets say 11% which is quite bad. So they offer you 11% on $150,000.00 and you secure it with a $30,000.00 cash security. As long as the business makes a return of GREATER than the payments on the 11% in Net Profit (arguable I use EBITDA but Im not going into that here) then you are making a profit on the loan and thus have used debt. I do not do any venture where I have a buffer of less than 5% so if the business was not making at least 16% over the cost of the debt I would not touch it but I am more risk averse than these younger cats out here.
Nick feel free to contradict me on anything here that is incorrect or specious in some way as I am by no means the expert you are (clearly I am not in the seven figure club yet... yet)
I disagree with one point he made. Student loan debt would be the first thing I would pay off, if not doing some sort of balance transfer for pay off the student loan. At least if you had other debt but student loans were paid off, you could discharge all your debt through bankruptcy. Student loan debt is not dischargeable in bankruptcy.
Your videos need to be taught in public school.
“The margins are creamy.”
Hello everyone, I've been researching investment brokers, and I'm really interested in working with someone trustworthy and reliable. With the recent market downturn, I'm looking for a broker who can help me turn things around and make a profit. Can anyone tell me about their experiences with any investment advisor
Who is this dude outside of RUclips? Hard to take someone seriously as an “expert” when they’re pitching courses on RUclips.
If FCF covers DS, it makes sense to take on a loan.
(t/f)
Banks want to know where the money is being put up for a loan.
(t/f)