On the surface, this seems like an oxymoron. How could you possibly
use debt to create more money? It actually isn’t an oxymoron, but you’re
going to need to change your perception of debt and
classify into two different categories for this to make sense. There
are many ways that going into debt can actually end up securing your
future, just as there are many ways that going into debt will ruin your
future. Let’s look at both to discover how to turn your debt into
wealth.
First, let’s discuss the kind of debt that you are probably most
familiar with. Bad debt is the kind of debt that most of us get into
after overspending on things that we really don’t need.
It’s easy to get caught up in commercialism and want to have all the
things that we think we deserve. Many of try to live like millionaires
on a small percentage of their budget. With poor management, debt
quickly grows out of control and before long, we find out that we are in
way over our heads. Bad debt is very common, especially among people
who are just starting out and have yet to learn this very valuable
lesson.
The second kind of debt is much different. This is the kind of debt
that you use to invest in something. The first kind of good debt you’ll
probably get into is your home. While it really doesn’t have many
measurable returns, unless the property value increases, it does have
emotional returns and serves as a good lesson in how using debt can help
you get better off in the long run. Think of this as an introduction in
how to use debt to grow wealth.
There are many ways that you can leverage your debt to start creating
alternative streams of income. For example, let’s say that you are
living paycheck to paycheck and you have the opportunity to invest in a
stock that is destined for greatness. You may have a couple of bucks put
aside, but it’s barely enough to buy one share. You can let this
opportunity pass you by, or you can leverage debt to help you take
advantage of this future stream of income.
What’s better – going into a little debt to reap big returns or
spending the rest of your life wishing that you had the money way back
when before that stock took off? Managed properly and used for the right
reasons, debt is a very powerful tool. If you want to make money, you
are going to have to have money. Unless you came into this world with a
silver spoon and a trust fund, chances are you don’t have a lot of it
just sitting around. That doesn’t mean that you can’t become wealthy.
By leveraging debt and using it well, you can easily achieve your
dreams of greatness. Just make sure that you don’t overextend yourself
or make bad decisions.
source: richcreditdebtloan.com
