Read Millionaire Fastlane!
- Dec 28, 2018
How he continues to believe that all debt is irredeemable is beyond me.
I know so so so many multimillionaires that couldn't have done a half as well as they have without debt. I use it to carry large purchase orders routinely. I don't want to be limited in how much I can carry for a customer. That is what allows me to play with big a$$ customers.
With no debt, I would have started out selling a 50-100k at a time. With debt, I can sell this stuff by the traincar as often as the customer request.
Years ago, we also sold industrial capacitors for power factor leveling to companies running big electric motors. They would save them money in about 2-3 years... They would last about 20... Slam dunk right? Nope, not one customer until I found a bank to underwrite these capicators. Spread out over a 15 year payment plan they saved money in the first month and also improved the lifespan of their equipment. I only ever sold those with a payment plan. Never for cash.
Debt is awesome as far as I'm concerned. Especially with interest rates as low as they are and the dollar on the way down. Just use it wisely and don't personally consume anything you can't easily afford.
I'm shocked he hasn't admitted the gaping holes in the "zero debt ever" thing. Every big company in the world has payables on their books.
I agree with you, but his audience is average Americans. The idea of entrepreneurship is hard to sell, but the idea of putting you money in the magical mutual funds and IRAs is a much more appealing idea to the masses. Let others do the work with my money. It's also the reason why people stay stuck where they are, or worse, lose it all during a crash.
I think Dave has a lot of good advice, but I also understand who his audience is, and you and I arent in it.
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