Are you coming to life with a consumer mindset or from an investor mindset? I have to bring that up because in this world, we’ve got good debt and we got bad debts. Did you know that? It’s wild! There’s debt that is actually a really good thing. When you’re consolidating consumer debts, you’re doing something really smart. When your consolidating good debts, business debt and investment debts that makes you money, it may be a smart thing but it depends on. It depends on whether your goal is trying to pay some off. A lot of people get into a spiral effect and want to snowball debt. Pay now, consolidating debts because you’re living life in fear.
How are you feeling inside about debt? When you think about the debts that you want to consolidate, do you feel happy inside? Do you feel trapped? Do you feel free or do you feel confined because if you tackle your finances from that spirit and energy of confinement, that my friend is called scarcity and scarcity is a scary place. Scarcity is this idea that there’s lack and there’s not enough and there will never be, everything that I need so I need to be that super smart and frugal with my resource and the opposite of that would be your birth right of abundance. That prosperity and abundance is something that are just as equally as available to you and our minds can either be sick like cancer that spread and infects us with scarcity who is father of fear.
When you deal with money and you manage it with fear guess what you get? You get less of what you want. You get more of what you don’t want. Because that which we fear, we bring about. Whatever we invest in we bring about. So this conversation about how should I feel, is this consolidating good? I would check in firs and see why. Why is it important to you? Is it because you have this exciting plan of how to get ahead? Or is it because of you this terrifying plan about getting ahead? See the counterfeit? It can be the same thing but how you feel is what matters most.
So by now you got to know if you’ve been hanging with me a little bit that there’s good debt and bad debt right? I still get people confused when they meet m and we have this conversation and they look at me skeptically like, good debt? That’s what you’re talking about? You might not know what it is but my world revolves around it. You see consumer debt is anything that you buy that you got to pay off that doesn’t produce money for you. It’s not an asset it’s a consumable a good example, a boat. I buy a boa and no matter how long I hold the boat, it’s not going to grow value. However, every month until it’s paid off, it’s going to ask for what? So a boat is one of those things that you don’t want to be buying and yes you want to consolidate that debt. On the other hand, you have good debt.
A good debt would be something like a house. I acquire debt to be able to buy it but every month the rent that I get, I use it to pay the liability of my mortgage and then there’s mystical $300 left over. I wonder what I should do with it? Well, I guess this left over is just for me. You’re right, it is a good debt because of what? It produces money for you. Well, $300 may not sound like a lot but imagine you had 10 homes making you $3,000 a month. How many of you could use that extra $3000a month? Well, guess what? You might have to acquire a million dollars of debt to make $3,000 a month.
How do you feel about that? Well, it’s making you $3,000 a month, it’s giving you the most aggressive tax write-offs, it depreciates, it goes up in value, it pays you, it’s no speculative, you’ve got instant equity that you can walk into this is a good thing. It’s an asset that performs and makes me money. It all comes down to, is consolidating debt a good idea? It depends on your mindset. Consolidate your bad debt and acquire good debt why because one will help you stop using so much and the other one will help you gain more of what you want.