Transforming debt into wealth doesn’t sound right, does it? You have most likely heard from writers like me that debt is the enemy to wealth. It’s true, you cannot have true wealth with debt because debt is a liability. If you owe somebody else money, the money you have isn’t truly yours.
With that in mind, is transforming debt into wealth possible? The answer is, maybe. I’m going to give you two ideas to consider. The first way to do it is to pay off your debts. Let’s look at education, for example. Only 3 months ago I completed my masters degree. Because I’m a full time teacher, my masters degree instantly transforms in to a pay raise and for a teachers, the yearly pay increase is sizable.
In order to do this, I took out a student loan. I’m going to get off topic for a second but the reason I took out the loan was because the interest rate for a federal Stafford loan is lower than the rate of return I continue to make by investing the cash. I’m in essence making money by holding the loan. (This is not recommended for people who aren’t making at least twice the interest rate of the loan)
Back to the story. Let’s pretend that I took out a loan because I didn’t have the money to pay for this education. If I graduate with a masters degree and an advanced degree, I’m in debt but as soon as I pay it off, I will make more money thus increasing my wealth. Transforming debt into wealth was accomplished by investing money in to myself.
The other way of transforming debt in to wealth is starting a business. Most people will have to take out loans in order to start a business but assuming the business succeeds, one can easily build wealth by first taking on some debt. It’s common practice for most startup businesses.
These two types of debt are investments. They will make you money in the end. Other debt, such as credit card debt is an empty expense. Stay away from unsecured debt as much as possible.
A friend of mine, Ryan Bauer, has written a great series of ebooks about transforming debt into wealth. This system is called the Debt Annihilation Formula. He talks about how to get rid of your debt in a practical way. You may have heard that you should pay off high interest credit cards first but Ryan takes it a step further and tells you why only paying the highest interest debt doesn’t help you in getting out of credit card debt.
In Ryan’s ebook, he gives you more than 60 pages of real ways to make extra money. These aren’t those work at home scams. They are real, legitimate ways to make extra money to work off your debt. Can you write articles about topics you enjoy? He shows you how to make extra money working when you have time writing articles on topics of your choice.
One of the best parts of his ebook series is the advice he gives about improving your credit. These aren’t those scam or illegal pieces of advice. They are legal, practical ways to negotiate with your creditors.
There are more free gifts included in Ryan’s ebook that you are going to find invaluable. Click any of the underlined links above or the Debt Annihilation banners to take a look at his risk free offer.