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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For more information go to tkdale.com/podcast

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