implanted in our minds from the early years of life
The idea that gets implanted in our minds from the early years of
life is that debt is a scary bad the word which must be avoided. Being indebted
and g
webapex.net etting entangled into multiple debts is a serious issue, which may lead to
poor finances and trouble, and can be a big burden, which must be taken off
from the shoulders as soon as possible. This is what the primary thought about
debt is in the mind of any individual. But is that all about debt, and is there
no positive side of being indebted? Well, this is not so, and there is a very
im
westernmagazine.org portant positive side of getting in debt. This is where the term good debt comes
into play. What is good debt, and when a debt can be said to be good is what is
discussed here.
What is good debt?
A good debt as the term implies a debt you take on for a good
cause, which doesn’t let the debt become your financial burden. Surely a debt
is a liability. But the liability can be taken care of if you earn well to pay
it back, a
ysin.org nd if the earning comes from the borrowed amount only. This will
introduce to you the concept of leveraging.
Leveraging
When you borrow money to invest in more money making so that your
borrowed money also gets paid with interest, and you still have earnings in
hand from the investment, then that is called leverage. It’s the art of turning
debt into good debt. It’s through this art of using money that you may make more
money, multiple money, and get rich too. You have to understand the right
sectors to invest the money that you are leveraging. And one of the best places
to invest the leveraged money is in real estate.
How to invest money in real estate to make your debt meaningful?
You can invest in real estate to make your debt meaningful. This
can be planned in some nice ways. Here are some tips for investing in real
estate with leveraged money, so that your debt turns out into good debt and a
portion of money you earn from the dealings goes into your pocket and becomes
your profit.
· Borrow money and invest in buying land. Use the land in setting up
a plant or factory. Earn from your own industry based business, and pay off the
debt in little time from this while earning a lot more than you pay back.
· Use the debt money to invest in a shop front or showroom where you
can open your shop or retail business. Earn well with marketing and wise
business decision making to pay off the debt soon, while you carry home a
higher amount than you pay back towards debt repayment.
· Use the debt money for buying a house, which you turn into a
rental house or hotel. Rent out the rooms on the day or month basis. Earn a
handful from this to earn a living and grow your wealth while you pay back just
a portion of the earning towards debt repayment and soon enjoy the profits.
· Use the debt amount to buy a piece of land that you know would be
of high commercial value. Just wait for the right time and sell it off to the
party offering the best deal. You will have to pay the debt through a tenure
surely. But after the real estate deal is closed you would be earning more than
twice you paid towards debt repayment in most likeliness.
· Buy home by borrowing money, and rent a part of it while you use the rest of the house
for your residence. The money you get as rent can be used to pay the EMI for
the debt through the entire tenure to pay back the debt fully. This way, you
own your house without investing much out of your pocket, and the debt is good
debt in this case.
This way, there are various great ways to earn through leveraging
while you pay back the debt too. However, the full thing must be done with
absolutely flawless planning. You must have backup plans to use in case your
primary plan fails. You are taking a debt not to get under heavy dues and
burden but to use the money for earning more and build wealth. Hence, in no
way, the debt must become a bad liability and a bad debt.
What if your plan fails?
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