Borrowing Money is good or bad?

Borrowing Money is good or bad?

Borrowing money. Is that good or is bad? Welcome to Wealthy Wednesday.

Let's talk about borrowing money. In the traditional way, we always talk about paying off the debt don't owe money to anyone. Stop borrowing. But that is not true. You can make a fortune by borrowing money. The only reason in a traditional way, people say that don't borrow money because they look at the negative aspect of it. So, for example, if you borrow money and buy assets, you will make a fortune out of that and you can establish a great business. But if you borrow money and then buy liabilities, that's not good. Let me explain that.

So here's the fun part of borrowing money. When you borrow money, you don't pay any taxes. There's nowhere you get charged for taxes when you borrow money. And that's what the big builders, big business people, even someone like Donald Trump built his Empire borrowed money from the bank. And the way it goes is you borrow money, but you buy assets means you can buy a rental property. You can buy an Airbnb and you do your number. As long as you make more money than the payment you are doing to your lender, you're in profit. Now you're using somebody else's money and making a business out of it. 

But a lot of times what people do, they borrow money to buy an expensive car, they borrow money to buy an expensive house for themselves. And that is your buying liability. That's not an asset. So in a simple statement, if you can start, using your borrowing power, borrow money and start buying assets one at a time, you'll see a huge change with your finances, down the road. So borrow money, don't buy liabilities, buy assets. If you have any questions, further details, give me a call. I'll be glad to help on that. My name is Shawn Bhakta from Remax Presidential, South Florida Home Finder Team. I'm glad to help.