Debt as a Wealth Weapon: What the Rich Won’t Tell You
In this episode, we discuss a surprising twist in the journey to wealth building – could your intelligence actually be holding you back?
We also talk about the impact of the Dunning-Kruger effect on financial decisions, real-world examples illustrating the consequences of overconfidence in investing, and why conducting a “financial autopsy” is critical for your wealth success.
Enjoy the episode!
0:00 – Intro
1:53 – Managing Borrowing Capacity for Real Estate Investing
6:40 – Property Investment and Its Impact on Future Lending
8:36 – Wealth Building Strategies for Mid-Stage Investors
14:20 – Wealth Management Strategies for Different Stages of Life
17:58 – Extro
The key to building wealth faster is understanding your borrowing capacity.
Yet most people underestimate the power of leverage and treat borrowing capacity as an afterthought. This overlooks the immense potential that borrowing unlocks.
As someone who has built a property portfolio using leverage, I can attest that my wealth today would be a fraction of what it is without it.
The Concept of Borrowing Capacity
So, what exactly is borrowing capacity?
It refers to how much money lenders will provide you to invest in assets like property.
Banks and lenders use complex calculators that assess your income, credit score, existing debts, lifestyle expenses, and assets.
Ultimately, though, their main priority is risk management.
The more reassurance you provide that you are a safe bet, the more they’ll lend you.Read More
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