How to Use Good Debt to Make Money

If you have heard that term before, you may be curious on how they work. 

This is a way to think OUTSIDE the box when it comes to finances. 

The average person:

-Has a 9-5 job
-Trades time for money
-Uses credit cards to buy things they can't afford 
-Has a tough time getting out of debt

But today, I am encouraging you to think beyond the average person. I am asking you to think CREATIVELY about your finances, even about debt. 

In the video below, I show you how it's possible to use "good" debt to your advantage, almost as if it were a loan - BUT! Please note: this is not advice, and if you do not yet have the knowledge of how to invest, I would not attempt the following just yet. 

Also note, investing involves real risk. This is a video for educational purposes to help others think outside the box, no more. 

Typically, people use credit for things that depreciate in value.

However, what if you used credit to somehow create profit for you?

Example #1

For example, I received an offer in the mail from a credit card company that I would have 0% APR on new purchases on anything I buy up to $40K for 8 months. 

What I could do if I was interested in this opportunity and if I was able to right a check for my car payment, mortgage, etc is use this credit card to pay off those bills and take my incoming work cash to invest. 

I could do that for half the time, 4 months, and then I have the rest of the 4 months to see how I want to invest that cash. 

That would NOT make sense if you don't know how to flip that money. 

But if you are in real estate or investing another way like myself in the stock market, you look at it as a way in order to make MORE money. 

Then you can turn around and pay off ALL the credit before the interest even hits. 

But you used that money to make money. 

This is how you can think about how you can make something happen in the best way possible. 

Example #2

Another offer they made me is to give me a $20K loan with a fixed APR of 6.9%. You would divide that APR by 12 months to determine your monthly, which would be $116.50 per month to borrow $20K. 

Now the question is, can I take $20K and make at least $116.50 per month in order to pay it back?

And they would let me borrow this money up to 5 years. 

So the only question is can I flip that money enough to pay it back AND create more wealth? 

These are just two examples of how you can think creatively when it comes to your finances and potentially leverage credit in your favor. 

Again, this is not for the faint of heart. You definitely need to get the knowledge FIRST before you do strategies like this because you need to lower your risk. 

For example, if you borrowed $20K from a family member and they asked you what you were going to do with the money and you said "Hmmm I still need to learn how to invest", how do you think that would go?

But if you knew how to invest in the stock market and were seeing consistent returns and could even prove to them from your statement that you knew what you were doing, wouldn't they have confidence in you?

The point is this: 

You need to gain knowledge first. Crawl before you walk.

If you need a place to start, I invite you to check out my custom Power Trades University, where we have education for every single level of trader. Check it out by clicking here or the image below.