Like many in previous generations, you might have been raised to believe that borrowing is bad or, if not bad, at least something that should leave a slightly bad taste in your mouth. If that describes you, then get ready to open your mind to rich new possibilities that should get you a little bit excited.
First of all, ALL borrowing is not good. You shouldn’t borrow money to take a month long vacation to Scandinavia or to buy a Ferrari. Consumer debt does not count as good borrowing. The kind of borrowing you should focus on is that which is tied to a piece of rental property. We’re talking long-term, fixed-rate debt in the form of a real estate mortgage. That’s the kind of borrowing that will make you wealthy.
This might be a new idea – but consider that the dollar has been losing value steadily since at least the early 1970’s. In fact, it has dwindled until a present day dollar is only worth about .24 cents when compared to thirty-something years ago. This devaluing is due to the ongoing effect of inflation caused by our imbecilic politicians.
If the dollar is losing value, doesn’t it stand to reason that anything you own that is dollar-based is losing value also? That means stocks, bonds, mutual funds, savings, and even equity in your house. The only way to win at this game is to buy something (rental property) and put off paying it back as long as possible, like in a 30 year mortgage. This way, the dollars you finally pay it off with are worth less than when you initially took out the loan. Without being too crude about it, this is how the banks get screwed and you come out smelling like roses.
The Platinum Team