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MJ DeMarco
I followed the science; all I found was money.
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Free registration at the forum removes this block.This scenario makes sense. In many cases though, the interest rates on most debt is insanely high, and I don't know many other secure savings funds that return interest at a rate higher than banks and other loaners charge. I am curious about hedging against inflation though. I noticed Blackrock do it back in 2020 & 2021, as they shorted the US dollar with real-estate while dollar was rapidly losing value at the time. I suppose the general question is how to hedge against depreciating assets, that being the dollar, houses, or cars. Also, where does one find secure saving accounts at high interest? (5 - 8%) The most I see offered by commercial banks are CDs which is around 4.8% at most.
Depends on if the 3.2 percent is effective rate.
Man you need to start being a influencer and collaborate with tate.Debt is cool because you can buy cool shit like a Hellcat.
Just go worry about your income and make it double every year.
Finance that car you can't afford, double your income, then go finance that boat you can't afford, double your income and go buy that house you can't afford, double your income and then run out of places to keep your money. Then you will have a nice car, a nice boat, a nice house, and a F*ck load of money and you won't be some NERD talking about interest rates and inflation.
Your frugality is boring, and it creates a financial buffer so that you are not motivated. So now you're boring and unproductive. Better to work hard and play hard. Make 5k/mo, spend it. Make 10k/mo, spend it. Make 50k/mo, spend it.
Make 200k/mo, accidently only spend 100k and then you didn't even think about it and saved 100k in one month, oops.
The answer is leverage.I have a few questions about the mention of debt from The Millionaire Fastlane because it was never really elaborated on. These are some points MJ DeMarco makes about debt:
"I take advantage of Banks, Banks don't take advantage of me" in reference to the garnering point rewards from credit cards while describing his reality.
"[Fastlane] Debt Perception: Debt is useful if it allows me to build and grow my system" when listing the Fastlane mindposts.
As someone who grew up following Dave Ramsey's advice, I see debt as undesirable in regards to personal finance. Of course, it's important not to finance a lifestyle on debt as is done on the Sidewalk, but what are some ways a Slowlaner or better yet a Fastlaner can utilize debt as a progressive tool?
Great, now I will forever hear Andrew Tate's voice when reading Johnny boy posts.Man you need to start being a influencer and collaborate with tate.
I wish I could like this 100 times!
Because in practice when you took up a mortgage loan, there are strings attached that you couldn’t fully repay it fully within the first few years, even if you have the money.
If you can get a return higher than the interest rate on the debt, it makes sense to borrow. Big “if” …
This statement is a starting point in your financial education. There are a billion avenues to
It is a matter of returns vs the cost od debt. My husband and I were actively looking for our first rental property to invest in. We had cash put aside but we thought we would take advantage of the low interest rates - this was back in July 21. So we would put the minimum 20% down payment on the house and that was it. It turned out that when the opportunity came we were offered to buy 2 rental properties on a discount if we bought the 2 together. We would not have done it without debt. Now we have the rental properties paying the loans and we still have money left on the rent as income. Our only regret is that it is a floating rate loan and when the interest payment resets in July it will increase aignificantly, but... we have cash set aside so we will pay down that debt in the summer. But had we fixed the rate back then, we would keep it. We bought a house for ourselves in 2022 also on a loan but we fixed the rate a relatively low level, so will leave it be as is. Debt needs to be looked at relatively to the cash flows it generates.I understand you could borrow when the cost is low, and use it on other opportunities.
But I am curious to know why one would not to pay it down in full, and borrow using the house as a line of credit later, at a similar rate.
Because in practice when you took up a mortgage loan, there are strings attached that you couldn’t fully repay it fully within the first few years, even if you have the money.
Depends on if the 3.2 percent is effective rate.I took out a car loan last year at 3.2%. It was obvious race we're going to keep going up.
The money I could use towards paying that loan office currently sitting in a savings account at 4%.
With inflation raging, I'll be paying it off with cheaper dollars.
And when the right business opportunity comes along, I will have cash on hand to move on it.
Those are three reasons why, in my case, it made sense to take on that particular debt.
Noooo why did you point that outGreat, now I will forever hear Andrew Tate's voice when reading Johnny boy posts.
This scenario makes sense. In many cases though, the interest rates on most debt is insanely high, and I don't know many other secure savings funds that return interest at a rate higher than banks and other loaners charge. I am curious about hedging against inflation though. I noticed Blackrock doing it back in 2020 & 2021, as they shorted the US dollar with real-estate while the US dollar was rapidly losing value at the time. I suppose the general question is how to hedge against or short depreciating assets, that being the dollar, houses, cars, or anything. Also, where does one find secure saving accounts at high interest? (5 - 8%) The most I see offered by commercial banks are CDs with APY around 4.8% at most.I took out a car loan last year at 3.2%. It was obvious race we're going to keep going up.
The money I could use towards paying that loan office currently sitting in a savings account at 4%.
With inflation raging, I'll be paying it off with cheaper dollars.
And when the right business opportunity comes along, I will have cash on hand to move on it.
Those are three reasons why, in my case, it made sense to take on that particular debt.
Well said. I shouldn't be obsessing about the actions of big businesses as if they have more control over my life than I do; I'll get back on track. That last question was geared more towards the win-condition of the Fastlane, cashing out. When one does choose to cash out a large sum in a liquidation event, how should it be protected?Do you have significant dollar exposure to inflation? The fact that you're asking this question makes me think you don't, so respectfully, I would say stop worrying about it and go build a business.
You're looking for a solution to a problem you don't have.
Comparing yourself to Black Rock, for example, is a complete waste of time. Every second you spend doing that, is a second you spend not building a business...
Bootstrapping is preferred. You are your boss and keep all your earning. No bankruptcy if business fails.I have a few questions about the mention of debt from The Millionaire Fastlane because it was never really elaborated on. These are some points MJ DeMarco makes about debt:
"I take advantage of Banks, Banks don't take advantage of me" in reference to the garnering point rewards from credit cards while describing his reality.
"[Fastlane] Debt Perception: Debt is useful if it allows me to build and grow my system" when listing the Fastlane mindposts.
As someone who grew up following Dave Ramsey's advice, I see debt as undesirable in regards to personal finance. Of course, it's important not to finance a lifestyle on debt as is done on the Sidewalk, but what are some ways a Slowlaner or better yet a Fastlaner can utilize debt as a progressive tool?
I understand you could borrow when the cost is low, and use it on other opportunities.
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