Host Trevor Dale, Founder of TK Dale Wealth Management and Creator of MillionDollarMortgage.com, talks about how many veterans in business talk about how using debt is a bad thing.
The thing they don’t tell you is that they themselves likely used debt and a lot of it. They probably took themselves right to the edge and risked everything and that pain they have is shaping their advice to you.
It’s like telling a developing country not to use coal power plants when they are the cheapest although dirtiest methods of providing power to their citizens.
They are in a difficult spot… they can’t afford the more expensive and cleaner options but still want to grow their infrastructure, provide a better living standard for their citizens and create more industry which will allow them to find cleaner methods later.
It’s easy for a developed country to tell them that they shouldn’t use coal but they themselves did and the developing country doesn’t have many other choices.
To grow or not to grow.
So what’s the take away?
Be conscious of the debt that you take on, have a purpose and an expected return by utilizing that debt. Make sure it is only on productive items and not consumables or discretionary spending like restaurants.
Also have a backup plan. Can you sell an asset to pay off the debt if it becomes too heavy? Can you make interest only payments like an interest only mortgage or line of credit?
How can you reduce your cash flows and cash burn rate while at the same time increasing your revenues?
Think about this all the time and do regular reviews. I review my finances weekly…
…KNOW YOUR NUMBERS.
Make big moves and go after it.
In the podcast I talk about rentals and starting your own business.
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This report is provided by TK Dale Wealth Management Inc. It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes. The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. This report contains economic, investment and market analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. TK Dale Wealth Management Inc. is not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.