Quote:
Originally Posted by Vegas69
The value of anything is the life you must exchange for it.
I didn't think of debt or obligations this way until recently in my life. My good buddy had a truck that was paid for or close to it. It was serving him just fine. He went out and bought a brand new truck because he's 51 and just wants to LIVE. (He tends to be a paycheck to paycheck guy) My perspective is now he must work to pay for the truck every month. Debt is really the antithesis of freedom.
I've spent the last 5 years of my life going the opposite way. I've worked continually on putting more margin in my finances and obligations. I've done that by reducing my liabilities(Currently have zero debts) and increasing my income.(Over doubled) I've hired better staff that reduces my work load and figured out what's of greatest importance daily. I say NO more than I ever have.
Focus is the art of figuring out what to say NO to.
The most successful say NO to almost everything. -Warren Buffett
Wealth is a pretty simple formula. The distance between your liabilities and income need to grow. The farther you can live below your means, the faster you will obtain wealth. After all, you must have the capital to take advantage.
I agree with Greg. I used to look at a recession or downturn in a very negative light. Now, I would see it as another opportunity to take advantage of a Spring. BUT, you have to be prepared for a rainy period and that happens over time, not days.
The most money is made with the market is MOST PESSIMISTIC. When the news, your friends, and coworkers are talking about how bad it is, that's your key to start looking for opportunities. 
Now, I do still believe in leveraging some real estate with debt. The numbers on an investment property just need to make sense for the long term after counting all the costs. |
Man i Love this Todd. SOOOO true, although, i must admit, i do fall from it from time to time. But def ain't living paycheck to paycheck.
I've got two great things i've learned here over the last few years: How divi's really work (absolutely never even heard of that before) AND in a down turn things "are on sale", I can seriously thank Greg for that, maybe even both.
Working on paying off the house (which is worth 1.1 at the moment, but i think its a 400k house at best lol). But hey, i have three places to leave a sh_t (you don't take one, you leave one) and running water. Perspective.
cheers, mike