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How does anon keep their cool when they realise how much debt

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How does anon keep their cool when they realise how much debt and commitments they've made?

I won't say I over extended myself financially in 2016, but sitting down tonight and looking at the next few months until one of my first houses sells it looks like it might need to be cheese on toast for dinner!

I'd imagine there are some dudes on here that make far greater money moves than me, how do you cope with the low moments?
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Debt made me wealthy. If you've got the right debt, it shouldn't stress you out.
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>>1696671
How so?
>>1696597
I don't have any debt yet. I think it'll be frightening to have that enormous sum of cash, that you owe someone.
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>>1696843
Well, taking on low-cost debt to pay for appreciating assets allows you to buy more of them. Rental homes are a great example.

Buying a home for all cash 100k that rents for 1k per month. (To keep things simple, let's ignore taxes, etc. for now) Your cashflow is 1k per month.

Now let's say you get 4 homes with 25% down apiece is still 100k total. But, now your cashflow is 4k per month and debt service is about 360 per month per mortgage (1440 per month total). Your net is now 2560.

Makes sense? Where does this extra cash come from? You're taking on more risk for higher returns. And controlling your down payment percent allows you to adjust your risk to suit your needs.
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>>1696597
Just make yourself a plan. Like you said, sit down and forecast your budget, major expenses, etc. Having a solid and detailed plan gives me peace of mind. It takes away the "unknowing" which is what makes me anxious. once you know where you stand, you can take steps in the right direction.

For example, If you know you're going to be $1,000 short 5 months from now, start picking up extra work now. When that 5 months is up, you'll be ready for it. Other wise it would be a surprise and you'd have to scramble.
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>>1696671

Exactly.

I was in 70k of bad debt, life was horrible, I then paid the debt down to 60k, realized shit takes too long, so took out another 80k of debt, turned it into 330k, paid the 80k I borrowed, the 60k I owed, and had 190k left over.

I then went to the bank, was like hey, see how I have this money, give me more on margin so I can buy shares, and now I can essentially use another 450k of money, and it costs me $87 a day in interest. Yesterday I bought 100k worth (200k individual shares) of a medium cap share @ 50.5c, it went up to 52.5c today, I exited, took a 4k profit, paid $190 in interest, $40 in brokerage.

This is the power of debt. Now had the stock moved against me 2c, I would have lost over 4k, so it's not without risk, but you do you analysis, take your position, don't over-expose and learn from your mistakes.

Besides, What is the worst thing that happens? The bank takes your stuff, you can't borrow money for a few years, then the bank goes hey, you know, we have credit growth targets we need to hit, here, have some credit at a mildly more expensive rate.
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>>1696917

$87 a in interest if I use the full 450k, on a 100k move, it's $20. $20, to use 100k, for a day, take the profits from that 100k, and give the money back, leverage is balls to the wall amazing.
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>>1696917
Well, you'd have lost more than you stood to win on the same absolute movement, due to fees and commission, so you'd have to be more than 50% to make money off of the move, or it'd just be gambling, wouldn't it?
Thread posts: 8
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