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People love to say debt is bad
In many ways, they are right
But just because you have cash
Doesn’t mean you shouldn’t utilize leverage
What is leverage?
In many ways, they are right
But just because you have cash
Doesn’t mean you shouldn’t utilize leverage
What is leverage?
Leverage is borrowing capital (debt)
To obtain an asset that is expected to produce profit
Greater than the principal + interest of what you borrowed
To obtain an asset that is expected to produce profit
Greater than the principal + interest of what you borrowed
Large companies use this to their advantage
ALL THE TIME
For example
Everyone knows Apple stacks ridiculous cash
But you may not know they also have
136,079,000,000 in LONG TERM DEBT (2019)
Yet Apple is still a highly valued company
This is leverage at work
ALL THE TIME
For example
Everyone knows Apple stacks ridiculous cash
But you may not know they also have
136,079,000,000 in LONG TERM DEBT (2019)
Yet Apple is still a highly valued company
This is leverage at work
But how can this apply this to your own life?
You can easily see why people blindly file consumer debt under “bad”
You borrow money for something that depreciates and
gives you very little in the process
But there are ways to use your debt to your advantage
You can easily see why people blindly file consumer debt under “bad”
You borrow money for something that depreciates and
gives you very little in the process
But there are ways to use your debt to your advantage
@ChroniclesNate has an excellent video demonstrating this
Take a look
https://twitter.com/ChroniclesNate/status/1283794697941651458?s=20
Take a look
https://twitter.com/ChroniclesNate/status/1283794697941651458?s=20
So remember...
Don't be afraid of debt
Learn to make it work for you!
Don't be afraid of debt
Learn to make it work for you!
