Here are the hard facts about money! ⠀
YOUR INCOME IS YOUR GREATEST WEALTH-BUILDING TOOL!!⠀
And the more you focus on increasing that rather than decreasing debt, you will be more successful.⠀
Recently on The Secret To Success Podcast I discussed with Karl about his credit card debt he had 18 months ago.
Here are the numbers on Karl's position...
Credit card debt - $10,000
Cash in the bank - $12,000
So what would most people advise in this situation?
Pay the credit card debt off right?
See, Karl was in a cycle for the past 20 years, never building wealth, never buying assets, just living paycheck to paycheck, and paying off his credit card bill when he got his tax return each year...
So my advice to him was to BREAK THE CYCLE!
See debt is never an issue when you have income that covers it.
But you can only get so much income from working your 9 to 5, and that's why I always recommend building multiple streams of income!
That means you need to buy assets!
Then let your income take care of your liabilities.
I'm a big believer that you should have a building for every bill you have! That includes any debt like credit cards, car loans, and student loans. ⠀
So instead, Karl used his cash to purchase his first investment property that today cashflow's him more than $1,000/month!
Well and truly more than the minimum payment on the credit card, and in fact a way he could pay this credit card off in the next 12 months, PLUS he will still have that asset afterwards and forever!
This advice isn't for everyone... It's for those who want to change the way they behave, and the wealth they create!
So before you go and pay off those debts with every dollar you have, remember to focus on income-producing assets first.. that cover your debt.⠀