Do you think that you can double your income by going in debt? The answer to this question is yes and no.
Some people have lucked out and even tripled their income by going in debt; however, if you want a soundproof way to make more money by going in debt, carefully consider a few things first.
Generally speaking, if you can avoid going into debt, it's a good thing.
Call me old-fashioned, but I am from the theory of thought that any debt is bad debt.
As time goes on, I need to clarify this statement.
There are good debts that have the potential to double your income such as education and investments.
Then, there are bad debts that have the potential to keep putting you further in the hole.
BAD DEBT: These bad debts are the ones where you really can't afford to buy it, but you start to come up with excuses like, "I worked so hard this week.
I deserve it.
" It's this sense of entitlement that gets you in trouble.
The moment that you whip out that high interest credit card and indulge is the moment that you just went into a material debt.
This is what I call bad debt.
GOOD DEBT: On the other hand, good debt really does have the potential to double your income.
Especially when things like the stock market and real estate business turn around.
Let's say you go in debt with something that carries 8% interest.
If the investment only pulls a 5% profit, you're in the negative 3%.
Don't make this investment.
It's a negative cash flow.
If you decide to take something with 8% interest that has the potential to draw a 15% interest every month, this is a good debt.
You may not double your income, but the investment is making you an extra 7% in profit every month.
This is good debt.
In addition, the economy will swing back in your favor if you hold onto your investment long enough.
This is when you start to double your income.
You may even triple your income.
EDUCATIONAL DEBT: Any time that you increase your amount of education, it's a good thing.
It puts you on the path to accessing your goals and then accomplishing your true mission in life.
You may decide to get a degree in an area of study or take an online seminar.
No matter what you do, try to plan the return that you expect to get on it.
A good rule of thumb for smaller educational ventures that you may want to put on credit is to make sure it pays for itself within 90 days.
Granted, there may be an occasion when it takes 9-10 months to put something into full effect where you see monetary return.
In that case, you may want to see if you can pay for it out of pocket or carefully consider if the interest you pay is worth it to you.
Going into debt to double your income is possible.
At the same time, avoid going into any excessive debt if you can.
Some people have lucked out and even tripled their income by going in debt; however, if you want a soundproof way to make more money by going in debt, carefully consider a few things first.
Generally speaking, if you can avoid going into debt, it's a good thing.
Call me old-fashioned, but I am from the theory of thought that any debt is bad debt.
As time goes on, I need to clarify this statement.
There are good debts that have the potential to double your income such as education and investments.
Then, there are bad debts that have the potential to keep putting you further in the hole.
BAD DEBT: These bad debts are the ones where you really can't afford to buy it, but you start to come up with excuses like, "I worked so hard this week.
I deserve it.
" It's this sense of entitlement that gets you in trouble.
The moment that you whip out that high interest credit card and indulge is the moment that you just went into a material debt.
This is what I call bad debt.
GOOD DEBT: On the other hand, good debt really does have the potential to double your income.
Especially when things like the stock market and real estate business turn around.
Let's say you go in debt with something that carries 8% interest.
If the investment only pulls a 5% profit, you're in the negative 3%.
Don't make this investment.
It's a negative cash flow.
If you decide to take something with 8% interest that has the potential to draw a 15% interest every month, this is a good debt.
You may not double your income, but the investment is making you an extra 7% in profit every month.
This is good debt.
In addition, the economy will swing back in your favor if you hold onto your investment long enough.
This is when you start to double your income.
You may even triple your income.
EDUCATIONAL DEBT: Any time that you increase your amount of education, it's a good thing.
It puts you on the path to accessing your goals and then accomplishing your true mission in life.
You may decide to get a degree in an area of study or take an online seminar.
No matter what you do, try to plan the return that you expect to get on it.
A good rule of thumb for smaller educational ventures that you may want to put on credit is to make sure it pays for itself within 90 days.
Granted, there may be an occasion when it takes 9-10 months to put something into full effect where you see monetary return.
In that case, you may want to see if you can pay for it out of pocket or carefully consider if the interest you pay is worth it to you.
Going into debt to double your income is possible.
At the same time, avoid going into any excessive debt if you can.
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