Debt is Healthy

Who else here are DEBT MAXIS?
Lines of credit, margin loans, mortgages, hell yeah I'm gonna finance that new gaming PC! Debt is fucking great! All my real money can go into income producing/appreciating assets while I just live and play on other people's money while paying

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What are you into that yields 15%?

overall it's actually a bit higher than that, mostly VOO (boring shit) and Tesla and Bitcoin (been in for a while). I also have some covered call etfs (JEPI / XYLD) generating monthly income and a bit of growth that I use to make payments on my margin loan. They cover the loan +extra so over time the cc etfs pay for themselves.

That's a man

Cool dude. Are you a debt millionaire yet or just in the hundreds of thousands?

Thanks user

based but what going to happen when you can't work and pay anymore?

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I'm still a little fish, but I live in a low cost of living area so my money goes further.
ideally that doesn't happen but if I were to be unable to pay anymore and risk losing everything in my life? Oh....I could think of something

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Bump

This should be a general thread. Debt will destroy a person if they simply use it to consume temporary things. However if you are disciplined and use that debt to buy cash flow producing assets you can literally live from doing nothing.

This is how wealthy people operate. They rarely own anything out right. They just lease and as OP said the yield from his investments that he purchased with debt are outpacing the interest rates.

I've been working on building my credit limit because I'm trying to hit a 100K total limit. Then with various balance transfer cards I can effectively have a 6 figure loan for 12-18 months at only 3% APR which is the balance transfer fee in most cases.

I could easily get 10% and insurance on a protocol for stable coins or simply buy a crypto in spot and then short an equal amount so I'm delta neutral. Then just work the position down as I pay off the cards. Of course a loan would be easier but if I churning 100K in cards for crypto my limit will go fucking sky high. Kek Just from the funding fees alone of going short, you can make an 20-50% APR. Longs pay shorts most of the time.

debt is good in a bull market
foreclosurs and bankrupcy happen due to debt in a bear market

Also buying real estate on debt is legit. FHA loans can get you a duplex for fucking 3.5% of the home value down. For an FHA loan though you must live in the home. You rent out the other side and use it to only pay the interest on the loan and bank the rest of the capital. DO NOT pay down equity. You can easily get a return higher than the FHA mortgage loan. You want to put as little equity in as possible right now the housing market is next in line. Kek

This rich dad poor dad bullshit is great until you get wiped out.
That guy himself laughed at people using his own strategy during the bubble, they got wiped out and he bought all their cheap houses.
You are taking on the risk for the banks.
You have to be comfy with going bankrupt if things go even a little bit wrong.

How would you get wiped out? If the value of the home goes below what you took out the loan for?

>All my real money can go into income producing/appreciating assets
Like what?

>Debt will destroy a person if they simply use it to consume temporary things. However if you are disciplined and use that debt to buy cash flow producing assets you can literally live from doing nothing.
This was basically the entire point of the book Rich Dad, Poor Dad.

Explosive. Will blow up.

Yes but it’s risky if not done properly. You can experience crashes and shitty periods even for safer things like buying real estate and renting it out.

depends on how much debt you take you'll be counting on income from maybe tennants who can't pay becasue economy is fucked and they lost their job, house value crashes, because people are selling to get money and there are no buyers you can't pay back loan, have to sell your house at a loss... etc

He wrote a whole book to say that?

I wish I could buy hash power on credit. If I could automate it and knew exactly what I was doing AND could guarantee that I'd get the hash power then I'd buy it with credit and then take out a short on the BTC secure the profits at the current USD price. Once all the mining is finished and I received the BTC I can close the short and sell the BTC for USD and do it all over again.

The other idea I had to churn my credit cards would be to simply buy a bunch of mining equipment and use the yield to pay it down. Hell if I'm mining BTC I don't even need to sell it potentially I could just borrow against it to pay down the loan or CC. I wouldn't do that with a CC though unless I had a 12 month+ 0% APR Intro deal, which is easy to get though.

Either way utilizing futures would allow me to guarantee certain profit margins if I started now. You go delta neutral with the mining and then buy out of the money option calls on BTC with 1-5% of your mining yield for actual exposure to BTC. It works really well over a long period of time. Most of the options will expire worthless but just a few being successful in a year can be huge for overall returns

I just want a good boy score so I can get a cheaper mortgage.

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>I just want a good goy score so I can get a cheaper mortgage.

I fixed it for you, but yeah I feel you brother.

This is right. Debt is poison to the average person but, cruelly, it's also the key to becoming rich. Debt is wealth. That specific juxtaposition is indicative of a wider thought-pattern that fundamentally underpins an "enlightened" or "elite" mindset. The inversion of values. "Without contraries is no progression". If you want to understand how the uppermost echelons of society think, start there.

she's beautiful