Why Debt Is Not Your Enemy
My goal is to help you build wealth so that you can own your potential. Building wealth requires that you be able to make more money, keep more of it, and multiply it. Multiplying money involves leverage, which means debt is going to be involved. You may be asking, “but isn’t debt bad?” That’s what I believed for quite a while actually too! I actually have spent more of my life hating debt, than using it wisely and understanding it. I want to share my story with you on the subject of debt.
At age 6 my parents would quite frequently get into money fights. Typically it was about debt. My dad’s name is William and my mom would jokingly refer to him as “Bill” because he was the person that all the bills would go to. That same year, my parents got divorced for the first time. It was largely due to money. I can still remember the fights that would happen in the house because of debt, late bills, and just the general stress of being paycheck to paycheck. A few months later, I recall my mom having her green minivan repossessed by the bank because the payments weren’t being made. That same exact summer our house was short sold because again, we couldn’t make our payments. I spent the summer between my mom and my dad. At my mom’s house we were living in a camper in a friend’s back yard. At my dad’s we spent the summer living in an RV. Based on my childhood experiences with debt, I should have every reason to hate debt. It broke up my family, it took our van away, and it made us lose my favorite house.
My personal debt experience. My first debt was a 2011 red Chevy Cobalt. I was 19. My car had broken down for the final time and I needed a new one. My rationale was that I did not have $10,000 to purchase a new vehicle, but I could afford a $300/mo payment. So I went into the GM dealership with my mom as a co-signer and purchased my first new car. At first, I couldn’t believe they’d let me drive away in a $15,000 car with only a $2000 down-payment and a promise to give them $385/mo. I LOVED debt in that moment. However, after a few months, I couldn’t make the payments. I also opened my first credit card because I wanted to get free airlines points. I had no intention of using it, but then I did. Before I knew it, I couldn’t make that payment either. I began to fear debt. It harmed me as a child and it was harming me again. I quickly began saving money and budgeting so that I could pay the debt off. I got on the Dave Ramsey plan and wiped my debt out and even began to pay down my car loan faster. I wanted nothing to do with debt and despised it. In fact, I made it my career as a Dave Ramsey financial advisor to tell people to get rid of all debt.
The plateau. I felt I was winning my battle against debt. I’d paid off one vehicle, I had no credit card balances, and I had $1,000 in cash sitting in an envelope at my house. Things were supposedly on track. But I had one issue. My income wasn’t growing, I wasn’t enjoying life, and we were still living in fear, paycheck to paycheck every week just hoping we wouldn’t have to touch the $1,000 we had saved. I had an opportunity come up that I needed to go for to grow my business and because I had only $1,000 saved, I wasn’t in a position to do it. I was sick of passing on opportunities. Now debt was harming me because it was holding me back from doing bigger things with my life. I was sick enough of it that I decided to use a credit card for this opportunity. I was terrified. I remember the butterflies in my stomach as I charged the card. Was I making a bad choice? I was doubting myself, but did it anyways. I used the credit card to expand my business into another location. I had charged roughly $2400 (which seemed like the world to me) and after a few weeks, that $2400 turned into $5,000. I wasn’t sold that debt was a good idea still, but I was pleased that somehow this had worked out.
Using debt for growth. I charged my card a few more times for my business, but always paid it right back down to zero and somehow always got “lucky” and made more than I borrowed. After observing this pattern over the course of a year, I realized that I wasn’t getting “lucky”, I was making a smart bet. I was using the debt for my own personal development. It wasn’t a mortgage, or a car, or any of the liabilities that I’d previously used debt for. I was investing in myself as an asset and I am the best asset I can invest in. I’ve now grown to love debt and I can copious amounts of it. I’ve gotten to understand how debt can be used as leverage, as a hedge against inflation, and also as a line of credit to provide opportunity when I may not have enough cash or maybe need the debt to hold me over until an investment pays off.
Debt isn’t a problem. The things that debt is being used for is a problem. Not generating income is a problem. That’s what I learned. I want to teach you how to use debt intelligently so that you can build wealth. If you’re in any of the 3 phases I mentioned, I want to help you. Maybe you’re afraid of debt and can’t control it. I can help. Maybe you’re stuck in the same plateau and you feel held back because of money. I can help. Maybe you understand deb should be used to invest in yourself and need help knowing how to invest it. I can help. Click here to schedule a meeting with my team and I. We will show you how to use debt to make more money, keep more of it, and multiply it.
Own Your Potential,
Grant Cardone Certified Coach
Jerry Fetta helps his clients make money, keep it, and multiply it.
He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf.
His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.
To get started, go to www.WealthDynamX.com/potential