Brad HartI help 7-8 figure entrepreneurs scale faster with AI, masterminds, and results-driven systems | Founder of Optimus & Repurposefully

Truth about Borrowing Money: What You Didn't Know #MoneyStrategy #InflationHedge #LongTermInvesting

Name: Truth about Borrowing Money: What You Didn't Know #MoneyStrategy #InflationHedge #LongTermInvesting
Uploaded: 2023-05-12T21:00:07+00:00
Duration: 55 s
Channel: Brad Hart
Description: Brad Hart argues that borrowing at low fixed rates like a 3.75% mortgage is smart when inflation runs higher, since you repay with cheaper dollars later…

12 May 2023 · 1 min

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Brad Hart argues that borrowing at low fixed rates like a 3.75% mortgage is smart when inflation runs higher, since you repay with cheaper dollars later. He says it's worth borrowing even without immediate plans, to invest, build skills, or strengthen relationships.

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Now you're talking money that's 30 year fixed at 3 and 3/4% where the inflation rate might be 8 or 9% because it wasn't that. There was 2% inflation and then all of a sudden 9% inflation. It's been like 9 or 10% for years. They only just finally got around to saying that it was. And now the real inflation rate might be 10 or 15%. You know, you can always rely on the Fed and the government to slightly exaggerate their claims. So there's that. So I'm like, okay, well I'm going to take as much as that money as possible. I got into literal arguments with people like why would you take the money if you don't need it? It's like, I'll find a better way to put it to work. Even if it's just going to masterminds and building relationships. Like I want to find a better way to put that to work. And by the time I pay it back, it's going to be worth half of what I paid for it. Let me say that again. If I borrow money at a fixed percentage rate of 3.75% a year and we're maybe at a 6 or 8% over the next 30 year inflation rate, well, that's essentially free money.