Paying off debt successfully requires a lot of determination and hard work, oftentimes at the expense of other financial goals. This can push back your goal of saving for retirement and investing to build wealth. As someone that’s dealing with the plight of student loans, I have neglected many other financial priorities in hopes of being debt free sooner.
Debt and Loans
In today's economy, having debt is socially acceptable, but using our resources you can determine how to properly manage debt, as well as find ways to eliminate it, so you can build wealth for the future.
Leveraging debt for investments is a strategy that gets popular during multiyear bull markets. And there’s no question — on the way up, borrowing to expand an investment portfolio can work wonders, but we should never forget that what goes up, must come down. When it comes to investing, leverage is a double-edged sword — it magnifies movements both up and down.
Reuters has a story about the poor getting bamboozled with yet another scam. No it’s not three card monte or state run lotto tickets. It’s via credit cards, and the rich are getting well.. rich off of them. According to the Boston Federal Reserve report, with its pretzel logic, only poor people pay by cash, and the rich elite pay via credit cards. Who better to perform the study than the Federal Reserve. With their multi-generation devaluation of the dollar, the Federal Reserve is an expert about wealth transfer. The report though, is class warfare at its finest.