In this monologue, Coach Raphael Djine emphasizes the core financial principle of never spending money before you have it, distinguishing between good and bad debt. He argues that using credit to acquire income‑generating assets—such as inventory, a revenue‑producing vehicle, professional attire for real estate, filming equipment, or a dollar‑store franchise—constitutes "good debt" because the borrowed funds are leveraged to produce cash flow that exceeds the debt service. Conversely, using credit for consumption (e.g., fast‑food, vacations, personal clothing unrelated to income) is "bad debt" that forces you to work to repay the loan. Djine critiques the blanket anti‑debt stance of figures like Dave Ramsey, asserting that strategic, interest‑bearing debt that yields a net profit is essential for building wealth. He illustrates his points with concrete numerical examples, showing how a $1 million loan at 9% can fund a dollar store that generates $14 000 net per month, leaving a $5 000 profit after debt service. The overall message is that disciplined leverage, not avoidance of all debt, is the path to financial growth.
Chapters
Okay. Number 1, never spend money before you get it. Never spend money before you get it. Never spend money before you get it. Wow. You're probably like, okay, explain. You know, the system of credit card A lot of people are so much against credit card. I'm not against credit card. We have what we call good money and bad money. If you take a credit card and go buy McDonald's, you actually spend the money that you have to go work for later on, right? But if you take a credit card and go buy your inventory and sell it and double the money, you actually leveraged the money. So that's not debt. If you buy a car or truck and have a $100,000 loan on it that can help you produce $7,000 every month, and then you pay the truck note for $2,000, that's a good debt. You are leveraged the money. That's actually leveraged the money. If you take a credit card and go buy clothes for $5,000 so you can look good and go show house as a realtor and close on the house for $10,000, that's leverage. You don't want to go show people house and walk like a mad person and they'll be like, oh no, don't worry about it. I don't think I'm buying a house now. Think about it. There's a difference about spending money before you earn and leverage the money to earn money. If today Nasco is filming me, if he take a credit card and put $5,000 on camera and go come and film me and I pay him every month, every time, That's leveraged money. But if he take credit card of $5,000, take his girlfriend to Bahamas, blow the $5,000, come back here, and work so hard to pay the credit card, that's like spending money before you earn it. It's like digging yourself out of the hole. I mean, I love Dave Ramsey. He talks about, oh, no debt, no debt, no debt. No, no, no. No debt. No. There's good debt and bad debt. Good debt is what pays you, and then you know for sure you can pay the money back. If you loan me $1 million, if you loan me $1 million, and I take the $1 million And open a dollar store. And open a dollar store, and I'm paying you for— let's say I'm paying you yearly for that, let's say 6%. No, let's— about 9%. Let's say I'm paying you yearly $9,000 for your million, and the dollar store is bringing me $14,000. $14,000 net. $14,000 net per month, and I'm paying you 9%. I actually leveraged the money because I make it— I'm net $5,000 per month. Good debt. Your million dollars is giving me $5,000. Even though I make $14,000, I'm carrying that with $9,000. It's given me— it's netted me $5,000. This is a beautiful debt. Everybody should go out there and look for this type of debt. Why? This is how you become wealthy. So never spend before you get it. And I just illustrated good and bad debt so that I can— That can help you a little bit. Number 1 and number 2.
