#022 - Good & Bad Debt

Welcome to another episode of the Invest In You Podcast. In today’s episode, Fredrik and Charlie respond to popular demand to discuss the topic of good debt and bad debt and how you too can be the bank, set the rules and avoid the money trap. Discover Fredrik’s top tips to avoiding bad debt and learn how to turn bad debt into good debt with educated investments in cashflowing assets. Improve your financial IQ in this episode of the Invest In You Podcast and understand how good debt is good and bad debt is bad. Avoid rat race and stop living hand to mouth. Don’t get yourself trapped in the hamster wheel and improve your financial situation. Learn how to arrange manageable payment schedules and build a portfolio of assets. These essential fundamentals are not covered in schools, so subscribe now and educate yourself on investment, finances, crowd-funding and much much more. KEY TAKEAWAYS Debt is the sum of all money that you owe someone. There are many types of Debt, including personal debt, credit card debt, student loan debt, and more. Taking on Debt can also mean incurring interest fees, meaning you'll be charged money for the privilege of borrowing money. In most parts of the world, debt means you need to pay back an amount of money, usually with interest adhering to a payment schedule.   Limited Liability - The condition by which shareholders are legally responsible for the debts of a company only to the extent of the nominal value of their shares. Unlimited Liability - Refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities. Charlie: When you are in financial debt is it important to invest in education? Fredrik: Yes, it’s important to improve your financial IQ. It is important when you are in debt to have assets or invest wisely to improve your situation. You can have good debt, for example borrowing money to buy a cash flowing asset or something that appreciates in value. When the asset is making more than the debt repayment you are increasing your revenue this can be an asset such as property investment. BEST MOMENTS “Debt usually means you need to pay the debt back in full, and then sum” “One thing I value in my life is freedom. When you sign up for a mortgage you agree to reduce your freedom” “Property goes up in value but money goes down in value. This is also known as inflation” “It’s good to hold assets, it’s good to take control of other people’s things. You need to be the bank, set the rules and avoid the money trap” “Inflation is eating up the value of loans” “Taking on bad debt has allowed me to grow faster than having to save the traditional way.” “Good debt is good and bad debt is bad” VALUABLE RESOURCES https://investincrowd.envestry.com/deals https://www.kickstarter.com/ http://www.crowdinvest.com/ https://www.crowdwithus.london/ https://www.crowdproperty.com/ ABOUT THE HOST Serial entrepreneurs Fredrik, Charlie and Ivan Sandvall love sharing ideas and interviewing world-class entrepreneurs and influences. Invest In You is about investments, entrepreneurs, personal development and doing fun things. They hope to insure you to take action, helping others and yourself, plus enjoying the journey we call life.   CONTACT METHOD Facebook - https://www.facebook.com/investincrowd/ Crowdfunding platform - https://investincrowd.envestry.com/deals Your Property Puzzle Limited - https://investincrowd.envestry.com/deals/1922