Financial freedom has more impact in your life than debt freedom.

Why pay off a car loan with a 4% interest rate?

Instead, you have the opportunity to invest those dollars into something that produces an income stream, perhaps paying you an 9% rate.

That’s called “financial arbitrage” – you’re borrowing at a lower rate to invest at a higher rate. You created 5% arbitrage.

Importantly, you want to invest in something that pays you income every month, like rental property.

You see, if you get an 9% capital return from stocks, you aren’t paid that as income until you sell. A capital gain is more speculative anyway.

You need income (from your tenants’ efforts) to pay your car loan, not a “paper return”.

Look, retiring debt does not produce income.

When you focus on PROducing rather than REducing, you are on your way toward financial freedom.

You can only reduce your lifestyle so far. When you do, now you’ve lowered your standard of living.

There is an unlimited amount of passive income (income you don’t work for) that you can produce.

“Financial freedom” means that you have sufficient passive income to cover all of your living expenses.

“Debt freedom” means that you don’t owe anyone anything, but that says nothing about your best-and-highest use in your own personal economy: increasing your income.

This is why I owe millions of dollars in “good debt”. It’s debt that’s outsourced to tenants that produces income for me at the same time.

Though I have the ability to retire the debt, doing so would be financially reckless.

Being financially-free beats debt-free. When you grind, work overtime, eat dirt, or eat beans and rice to try to retire debt, ask yourself: “What kind of life am I designing for myself?”

Use arbitrage to create wealth for yourself. Don’t live below your means; expand your means.

Thought getting your money to work for you creates wealth? It doesn’t! That’s a myth. My international best-selling E-book is now 100% free, 7 Money Myths That Are Killing Your Wealth PotentialGet it here for a limited time.

SUBSCRIBE TO OUR FREE NEWSLETTER

Be notified of wealth-building Get Rich Education updates! Leave your contact details here.

You have Successfully Subscribed!

GRAB GET RICH EDUCATION’S BOOK AND LETTER!


Free E-Book. 7 Money Myths That Are Killing Your Wealth Potential contains money secrets you can’t believe you never knew in 84 concise pages. It finally clarifies how real estate creates financial freedom.

Free Letter. Our weekly Don’t Quit Your Daydream E-mail letter wires your mind for wealth. It helps you make money in your sleep and updates you on important real estate investing trends.

Full of value, void of hype. Just real content that makes a difference in your life. Rather than living below your means, learn how to expand your means.

Check Your E-Mail For The Book.

GET MY FREE EBOOK


7 Money Myths That Are Killing Your Wealth Potential

Check Your E-Mail For The Book.

Share This

FREE VIDEO COURSE

REAL ESTATE
PAYS 5 WAYS

This valuable 1-hour course and newsletter wire your mind for wealth:

Get Video Course - Pop-Up