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Do You Need Debt to Reach FIRE? How to Use Leverage to Build Wealth

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Manage episode 449760781 series 1900058
Indhold leveret af BiggerPockets. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af BiggerPockets eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.

Is paying off debt or investing (and potentially using more debt) the best way to reach FIRE? The average American has $104,215 in mortgages, student loans, credit cards, and other debt. Where do YOU stand? If the end goal is FIRE, you need a game plan for your debt, in which case this episode is for you!

Welcome back to the BiggerPockets Money podcast! Not all debt is bad. When used responsibly, it can be a powerful tool that allows you to buy appreciating assets and hedge against inflation. Today, guest co-hosts Kyle Mast and Amanda Wolfe join our panel to share their thoughts on debt. We’ll share how much debt we each have (ranging from zero to millions), how our philosophies on debt have evolved, and how debt can ultimately help you reach FIRE.

But that’s not all. We’ll also discuss the types of bad debt that could derail your FIRE journey and the investments you don’t want to be stuck with during an economic downturn. We’ll even get into the most important financial protection against debt risk—savings and reserves—and why these funds should grow proportionally to your debt!

In This Episode We Cover

Paying off debt versus investing (and which strategy is best for FIRE)

Why well-leveraged debt is one of the best long-term hedges against inflation

The types of debt that could propel you toward an early retirement

“Bad” real estate investments you don’t want to be holding during a market downturn

The most irresponsible uses of debt (that you should avoid at all costs!)

Why you should always grow your savings and reserves in tandem with debt

How much debt WE have (and how our opinions on debt have changed)

And So Much More!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Join BiggerPockets for FREE

Email Mindy: Mindy@biggerpockets.com

Email Scott: Scott@biggerpockets.com

BiggerPockets Money Facebook Group

Buy Scott’s Book “Set for Life”

Find Investor-Friendly Lenders

Pay Off Student Loans or Invest in Real Estate: Which Makes You Wealthier?

Connect with Kyle

Amanda’s Website

(00:00) Intro

(01:23) How Much Debt WE Have

(06:15) Paying Off Debt vs. Investing

(13:46) Starting Your FIRE Journey

(21:51) Debt Strategy 101

(31:38) “Unreasonable” Debt

(38:23) Bad Real Estate Investments

(46:48) Key Takeaways

(50:18) Connect with Kyle and Amanda!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-580

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

591 episoder

Artwork
iconDel
 
Manage episode 449760781 series 1900058
Indhold leveret af BiggerPockets. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af BiggerPockets eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.

Is paying off debt or investing (and potentially using more debt) the best way to reach FIRE? The average American has $104,215 in mortgages, student loans, credit cards, and other debt. Where do YOU stand? If the end goal is FIRE, you need a game plan for your debt, in which case this episode is for you!

Welcome back to the BiggerPockets Money podcast! Not all debt is bad. When used responsibly, it can be a powerful tool that allows you to buy appreciating assets and hedge against inflation. Today, guest co-hosts Kyle Mast and Amanda Wolfe join our panel to share their thoughts on debt. We’ll share how much debt we each have (ranging from zero to millions), how our philosophies on debt have evolved, and how debt can ultimately help you reach FIRE.

But that’s not all. We’ll also discuss the types of bad debt that could derail your FIRE journey and the investments you don’t want to be stuck with during an economic downturn. We’ll even get into the most important financial protection against debt risk—savings and reserves—and why these funds should grow proportionally to your debt!

In This Episode We Cover

Paying off debt versus investing (and which strategy is best for FIRE)

Why well-leveraged debt is one of the best long-term hedges against inflation

The types of debt that could propel you toward an early retirement

“Bad” real estate investments you don’t want to be holding during a market downturn

The most irresponsible uses of debt (that you should avoid at all costs!)

Why you should always grow your savings and reserves in tandem with debt

How much debt WE have (and how our opinions on debt have changed)

And So Much More!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Join BiggerPockets for FREE

Email Mindy: Mindy@biggerpockets.com

Email Scott: Scott@biggerpockets.com

BiggerPockets Money Facebook Group

Buy Scott’s Book “Set for Life”

Find Investor-Friendly Lenders

Pay Off Student Loans or Invest in Real Estate: Which Makes You Wealthier?

Connect with Kyle

Amanda’s Website

(00:00) Intro

(01:23) How Much Debt WE Have

(06:15) Paying Off Debt vs. Investing

(13:46) Starting Your FIRE Journey

(21:51) Debt Strategy 101

(31:38) “Unreasonable” Debt

(38:23) Bad Real Estate Investments

(46:48) Key Takeaways

(50:18) Connect with Kyle and Amanda!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-580

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

591 episoder

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