Is ALL Debt Bad? 🤔

Is all debt bad? Right now we're in a cost of living crisis where inflation is so high and spending power is so low that people are getting more into debt. There is now fuel and food poverty. People are having to choose between heating and eating, and this is a reality. Now, Dave Ramsey, the American money mentor, says that all debt is bad and that debt is dumb. Let me say that again. He says all debt is bad and debt is dumb. He is wrong. All debt is not bad and all debt is not dumb. You just have to know which debt is dumb and which debt is smart. So, for example, let's say you say all debt is dumb, therefore I'm going to keep my cash in the bank. Well, inflation is 10% plus, it's more in reality, and the banks are giving you less than 1% interest, and the banks are printing trillions of pounds in quantitative easing. Therefore, your money is going down by more than 10% a year. So actually, having cash is dumb unless you want to lose 10% a year, of course. So if you took your cash and used it as leverage and gained good debt to, say, buy, buy property investment, then that is smart. So do you know the difference between good debt and bad debt? That's a question for you. Let me know in the comments. So bad debt is spending money, sometimes money you don't have, on depreciating liabilities, on things that go down in value, things that cost you money every month. Good debt is money or leverage or resources you put into assets that appreciate in value, that go up in value. It's quite windy out here. I hope you can hear me okay. So property is good debt if you can get a low-cost loan. By the way, you can get mortgages in the 2s percent right now. 2 to 3%, you can get a mortgage, um, and you can get a yield of 8%. So you can have a good net yield of 1, 2, 3%, which is way better than cash getting -10%. So if you leverage good debt into— let's try and position this. I need to pump these. I've got an outdoor gym here and I've got weak shoulders. So if you take your cash out of the bank, you put it into appreciating assets You leverage that cash. So for example, you might only need 30% deposit, 70% good debt, and then you earn on the 100% of the asset. So let's say you buy a $200,000 real estate asset, you put $60,000 down, you've got $140,000 from the bank. Maybe you got it below market value and it's actually worth $250,000. So 60 down and you're earning on the full 250. And if you get 10% a year growth or 5% a year growth on the 250, you're going to be getting 10, 15, 20 grand a year in growth. So you've exercised leverage. Now if you say all debt is bad, you can never end up affording to buy anything. Oh, well, you've got to save and pay your mortgage down and only buy an asset. When you've got enough income. Why can't I get in the middle of the screen? That's better. So let me know what you think in the comments, by the way. Is all debt bad? Is Dave Ramsey wrong? Dave Ramsey says all debt is bad. If all debt is bad, then the 99-apartment, 159-tenant block that's 135,000 square feet in the center of my city, I would not have been able to buy, probably. Because I didn't have $20 million liquid to jump into it. My money's tied up in assets and companies. Not all of it. I put a few mil in, but I didn't put $20 mil in. And that makes $1.3 mil a year. In dollars, nearly $2 mil a year. That is good debt. So I'm sorry, Dave Ramsey, but you're wrong. Not all debt is bad, and not all debt is dumb. In fact, it's dumb to have cash in the bank. How do I get it in the middle? What is going on here? Let's have a little walk, shall we? Let's try this. Okay, so what do you think? Is all debt bad, or is, um, some good debt good? I believe if you have cash in the bank, that's a depreciating liability. People talk about buying depreciating liabilities, putting money into things that go down into value, but they actually don't talk much about cash being a depreciating liability. Cash is a depreciating liability. It's going down 10 to 15% a year. So actually, cash is trash. And I didn't always agree with that. If interest rates are high, cash attracts good interest. If interest rates are low, cash attracts no interest. I'll sit down on this bench. So you are wise to save only as a bridge to get money to invest, then you are wise to invest that money into appreciating assets like real estate and other classes. You could maybe buy a business and, you know, grow the business through marketing costs and resources and staffing up, etc. And you can gain leverage, so you can get investors and shareholders into a company, and you can get private investors or joint venture partners or banks into real estate. And you can get— you can put 30% down or less. You can then leverage bank finance for the rest. You can buy below market value, so you put 30% in, you get 70% loan, you've got 20% again on top in equity, and then you might have 5 to 10% a year in growth, and you're producing income that pays off the mortgage and gives you a net cash flow. And that's how you get rich. That's how you get rich. You do not get rich saving cash. You do not get rich believing that all debt is dumb. The banks love property and they will lend to you on the security of property, so they must believe that property is a good asset. And when you put your pound or dollar in the bank, the bank lend it out 10 times, so they're creating debt on your money. So actually, you should be leveraging. You should be not over-leveraging, but leveraging, investing. And definitely not hoarding cash because it's trash because of inflation. And the only way to beat the cost of living rise is to beat inflation, which means your price and your wage and your earning inflation, your income, needs to be higher than your cost inflation, your debt. And right now, cost inflation is 10% plus. So let me know what you think in the comments. Hit the share button. By the way, if you'd like, um, to get better financial education and knowledge, if you'd like to start or scale a business, learn how to invest in assets, create multiple streams of recurring income— digital assets, physical assets, real estate, leveraging good debt, monetizing your social media and personal brand and content and all this kind of thing— start that side hustle, that second income, build multiple part-time income streams, then I recommend you join Rob.team. Literally the cost of a large coffee a month, that's it. When I say cost, I mean investment. In fact, it'll cost you not to be a member. Today you'll probably spend more on coffee than you do joining Rob.team. I've put the link in the comments, Rob.team. Literally just open a browser right now and then type in rob.team, rob.team. Put that in a browser right now, and for the cost of one large coffee a month, you can get 15 pieces of premium content from me increasing your profits, increasing your salary, increasing your income. I did 7 ways to increase— 17 ways to increase your profits 2 days ago. I've actually got a 1-day Monetize Your Social Media Masterclass that you can also get completely for free when you join Rob.team. Adam's just put the link in. R-O-B dot T-E-A-M. I have a 2-day recurring income summit. I've got the founder of Netflix speaking. I've got my friend who sold half a billion books. And if you just go right now to rob.team, you can gain access for free to the Recurring Income Summit. You can even get a VIP ticket for free, which would normally be $1,000. The 21 Ways to Monetize Your Social Media Masterclass, that's a $500 masterclass that you can get for free by being a Rob Moore member. rob.team. And the reason I give all this value for just a fiver is because I'm on a mission. To help as many people on this planet start and scale their business, get better financial education and knowledge. I have my Rob Moore Foundation. I want to help millions and tens of millions and hundreds of millions of people in this financial crisis, in this cost of living crisis. That's why I'm only charging you, uh, one large cup of coffee a month. You can literally have— if you have one coffee a day, you can now just have 29 coffees a month. You miss one day and it will cost you nothing. So, um, get in at rob.team. We also, by the way, do, um, live challenges 4 times a year. So I do the Make Cash Challenge twice a year at rob.team, whereby for 5 days I'll give you 15 pieces of content and challenges and action and accountability to, um, start your business, scale your business, make extra income, residual income. Another reason I'm doing this, I'm celebrating the 3-year anniversary of Rob.team, but also in this cost of living crisis, everyone's looking to save money. You can't save enough money with inflation and the cost of living soaring. You have to make extra money. You have to make residual income, extra income streams, increase your salary, increase your commissions, increase your prices, start your businesses. That's the only way. You're never going to save your way out of this cost of living crisis. I'm sorry, that's the reality. Someone said they don't drink coffee. That's fine, you just need a fiver a month or the cost of a large coffee and you're in. So go and join at rob.team. Now, um, Sylvia has just said bubbles always explode. Um, well, yeah, I mean, property is very high at the moment, um, but if you go back since 1952, um, property has doubled every 10 to 15 years consistently. And has it had booms and busts and highs and lows? Yes. But consistently over time, is that what's happened? Yes. You can track on Nationwide house data. So all these people saying I'll never buy property because it'll always crash, they're wrong. Well, they're 75 years wrong. Do you know all the land in the UK was worth about a million in 1088? Now you can't even buy a garage for a million in Mayfair. So all of you that are waiting for the perfect time, you're missing out. Start now, get perfect later. And I'll teach you how to build assets, physical and digital, and create recurring income at— on the rob.team platform. R-O-B dot T-E-A-M. 2 masterclasses a month between 2 hours and 2 days long, and you get all the recordings of all the content I do. 15 pieces of premium content a month that I don't share publicly. All by just opening a browser now and typing in rob.team. Sean Paul has said 2 or 3 times now about negative equity. Negative equity doesn't really matter as long as you don't sell. Now of course I'd like positive equity, but you only really get negative equity if you buy at the peak and then there's a big correction. And if you get residential mortgages, it doesn't matter because the banks can't call in the loans. So as long as the income is there, the equity doesn't matter. But over time, it doubles every 10 to 15 years. It has since it started. I was buying houses for between 50 and 70 grand in my city in 2008 and '09 that are now worth $150,000 to $250,000. So I've seen the full cycle. And if you would like to make money in all parts of the cycle, multiple streams of recurring income from digital assets, from someone who's got 9 income streams, from someone who's done more than a quarter of a billion in revenue, from someone that makes tens of thousands on every single social media channel, give or take, hundreds of thousands from their personal brand, and millions from training and education. I can teach you how to do the same thing at rob.team. R-O-B dot T-E-A-M. Not all debt is bad. Hit the share button, let everyone know Dave Ramsey is wrong. Not all debt is bad. Bad debt is bad. Debt for depreciating liabilities is bad. Debt for appreciating assets is probably the only way you're going to get the assets quick enough, and that turns debt into income. And the banks do that on your money, by the way. So thanks for tuning in. Hit the share button and remember this: It's somewhere on my gym wall, the quote. It's there, you can't see it. If you don't risk anything, you risk everything. I'll see you in rob.team. Just open a browser, write rob.team. What are you waiting for? What are you waiting for? Are you waiting for the next recession? Are you waiting for the market to be perfect? Are you waiting to have all your ducks in a row? You waiting to have any money or enough money or everything to be perfect or to have enough information or permission from your partner? Because if you're waiting for any— like, anything like that, you'll be waiting until you die. If you do not make money while you sleep, you will be working until you die. Hit the share button on that.