May 6, 2023

The Only Time to Leverage Debt

As we navigate the complex world of personal finance, it is essential to stay up-to-date on the latest strategies and trends for building wealth and securing our financial futures. One key principle that’s been gaining traction in recent years is the idea of leveraging debt to acquire income-producing assets.

Aside from borrowing only what is needed, it is important to take note of the following:

Use debt strategically to acquire assets that generate regular cash flow or income, such as rental properties, dividend-paying stocks, or a profitable business. This will not only increase your overall wealth over time but also offset the cost of the debt through the income generated by the assets. Take a look at this article from Business Insider for more guidance about money-generating assets.

Carefully plan and understand the risks involved. It is important to evaluate potential investments and select those that are likely to generate enough income to cover the cost of the debt. By considering factors such as interest rates, market volatility, and potential cash flows, investors can gauge the feasibility of the investment and make sound financial choices.

You’ll also need to have a solid plan in place for managing the assets over the long term, as well as a backup plan in case of unforeseen market or economic changes. This could involve diversifying the investment portfolio, establishing emergency funds, or having alternative investment options ready to deploy if needed.

Have a clear vision of your long-term goals. This provides you with a sense of purpose and direction. Are you aspiring to start a business, invest in real estate, save for retirement, or do social impact investing? Keeping your goals at the forefront of your mind serves as a constant reminder of what you’re working towards. This clarity allows you to make informed decisions that align with your objectives, rather than being swayed by short-term impulses.

By staying focused on your long-term objectives, cultivating discipline in your financial habits, and strategically utilizing debt to acquire income-producing assets, you lay the groundwork for a bright financial future. Remember that financial success is not achieved overnight but through consistent effort, informed decision-making, and a commitment to long-term wealth building.

Share:

One Comment

Pingback: What is your Philosophy on Investing? - Money With Mission

Comments are closed.

Related Posts

Creating Business Income Without Building Another Job with Gregory Mohr

What if building wealth didn’t mean creating another job for yourself, but instead designing a system that works without you? In this episode, Dr. Felecia Froe sits down with franchise expert Gregory K. Mohr to unpack the realities of franchising as a wealth-building and lifestyle strategy. From Gregory’s early lessons about money and service to a clear breakdown of how franchises actually work, this conversation demystifies one of the most misunderstood paths to business ownership.

The Mindset Shift We All Need About Money

The Mindset Shift We All Need About Money Hey friend, Let’s be real. How often do you find yourself thinking, “If I just made a little more, things would feel easier”? I used to feel that way too. I was doing all the “right” things, saving, investing, paying down debt, but still feeling stuck

The Cost of Investing — and the Cost of Standing Still with Krisstina Wise

In this deeply honest and reflective conversation, Dr. Felecia Froe welcomes back Krisstina Wise for a very different kind of discussion from their previous appearance. Instead of focusing on wins and strategies, they explore the realities most people avoid, including loss, intuition, risk, shame, resilience, and what it actually takes to stay in the game long term. This episode is candid and unfiltered and includes occasional strong language as part of an authentic conversation about real-life experiences.