I feel like he is opposite of pay day loans

Pay day loans are almost always a terrible idea, but need to exist for specific people and circumstances. SHOULD BE AVOIDED IF RETARDED.


He gives advice that is almost always inefficient, but broadly it wont hurt you. SHOULD ONLY BE FOLLOWED IF RETARDED.

>>1154907
What's some of his retarded advice?
Also credit cards and debt are the devil.

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>>1154935

I'm a big believer in using debt to create wealth, so his zero debt policy is completely wrong to me

>>1155065
>pay off your home early
Why is this a thing? Mortgage at 5% and a 28% income tax bracket you're really paying 3.6% interest. Cheap money - why would you pay that off?

>>1155088
He, and many people after the 2008 crash, values safety over fiscal efficiency. Pay down your house and you will never get foreclosed on is a powerful motivator, even if it isn't the most effective way to build wealth.

>>1155356
Ah but you still can get foreclosed on. What some people never get is that you will always be owing something to someone.

>>1155356
If you hedged properly you would celebrate in a down market and be able to Double your investments, holdings, and toys.

>>1154907
>le debt is bad meme

Loans are literally free money if you aren't retarded.

>>1155088
It's advice for financially illiterate plebs.

>>1157725
Wrong.

>>1154907
How many people are pissed off that their house is paid for?

>>1157862
accountants mostly.
b/c no balls

>>1155088

I was paying down my mortgage until i realized all the people at my hedge fund have mortgages.

Especially here in Austin tx where ee have 10-15% home appreciarion. You would have to be a fool not to lever the fuck up on this cheap debt! Glad I did

> First you think credit is great (18 yo)
> then you believe credit is bad
> then if you're are smart it becomes leverage

>>1157729
>>1157861

You guys are arguing over two different things

When Dave says debt, he is only referring to consumer debt.

Shit like iphones, cars, vacations, etc, are all bad debt and should always be avoided

Leveraging is completely different from consumer debt.

Leveraging can still potentially fuck you, but it is supposed to be a calculated risk to maximize ROI

>>1154907
If you carry a lot of consumer debt this guy makes sense. There are a lot of idiots that don't understand why paying their groceries with credit is stupid. I used his debt snowball advice to get out from credit card and car loan debt. I hope to never have a car payment again thanks to his advice. This being said, I have a significant amount of money in savings now that I wouldn't trust him to invest. He's not an investment guy. I also refuse to pay off my student loans at any payment greater than the minimum because the interest rate is so low, and I can't file bankruptcy to get rid of it. This is contradictory to Dave's advice.

Ok, call me a rookie, can someone explain leveraging to me?

>>1157901

Using debt to invest with.

More upside and more downside.

>>1157911
So are you telling me this guy >>1157871 is "leveraging" against his mortgage?
How do you <lever the fuck up on this cheap debt?

>>1157924

If the mortgage is 3% and his investments yield 6%,then he nets 3% profit by throwing more money into the investments instead of paying extra on the mortgage.

He'll have more money doing this on a 15 year mortgage than someone that paid his house off in 8-10 by putting their money towards just the house

>>1157924

Interest rates and mortgages are at historic lows ~3.75%. If buy a piece of property that is increasing in value at 10-15% and you get to live in it (opprotunity cost saving) and enjoy yourself, Then it makes great financial sense to get as much cheap debt while the getting as good. (Mortgages are cheap leverage because the bank has an asstet backing it, your house) As long as you can make your payments and dont take on too much debt that will drown you if the housing market or stock market takes a shit.

>>1157937
How secure is the investment? What is the downside? If it's that clear cut everyone would be doing it, right?

>>1157953

Downside is your taking on risk investing the money somewhere else rather than taking the risk free choice of paying down your mortgage

>>1157952
Ok, I think I understand. But only in Austin. You are banking that Austin will be the next Silicon Valley and housing will continue at 10-15% increases? I live in Florida, and the increases are only that good when foreign investors continue, and even still we lived thru the 2007/2008 bubbles. Housing is not investment.....at least in mature markets.

>>1157957
Gotcha, thanks for the kind response.

>>1157960

I bought my shitty condo for 120k, remodeled it for 11k and increased the value 60k. Its appreciated at 10-20% over the last 3 years. Factor in what I would have to pay in rent if i didnt buy the place, 12k a year.

Also I airbnb my spare room that brings in a cash flow of $1200 a month!

Now it's worth $220k not including the value of the airbnb business! Im so glad I cashed in my nest egg to buy this place.

>>1157992
So are you investing instead of paying down your mortgage? And w/ the Airbnb thing are people coming and going? Do you live there at the same time?

I did a couple weeks of his seminars when I was in my teens. He helps idiots who max out 3+ credit cards and have no idea how to save money. If your on /biz/ you probably don't need his advise. Funny enough though I remember him being antigold and somewhat antistock. He was very specific on not owning any stock in your company you work for because he wants people to avoid going bankrupt and losing their job in one shot if their company went under.

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>>1158004

Yea i just put cash down on another property instead of paying down this mortgage.

Yea I live here while airbnb people come and go. Ive gotten used to it

>>1154907
I like his views on whole/term life insurance. Biggest fucking ripoff ever. Also most of his rants about millennials are spot on accurate.

>>1158013
It looks nice, although I couldn't imagine the Airbnb situation. I'm assuming you are a millennial doing very well for yourself. With any luck you'll get a hook up out of it ;)

>>1158013
Clearly I'm bitter w/out the smart investment moves.

>>1158027

Just smashed a 20 girl visiting from Taiwan she practically begged for my white man 29 yo cock

God damn I love airbnb

Some of his advice is sound, like budgeting and how to not be a retard with your money.

When it comes to investing and debt/credit he falls way short, could also use less shilling and God shit

I have a difficult time believing you, but even still go get 'em tiger!

>>1157861
>he is actively paying down his mortgage

It's like you love being poor

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>>1158011
>He was very specific on not owning any stock in your company you work for because he wants people to avoid going bankrupt and losing their job in one shot if their company went under.
See Enron.

There were an enormous amount of pricks who worked for Enron's trading unit in Houston. Part of the Enron culture was to become hyper pricks any way. Nothing worse than criminal pricks.

So, when Enron went away like a fat girl's fart on a windy day, many of the pricks lost their entire retirement funds because they were all invested in Enron stock. Then they became weepy pricks as they cried on TV to anyone who'd listen about how the fuckers they worked for fucked them. I didn't shed a tear for them. They were pricks.

That's why Dave talks about not having all your retirement money invested in your employers stock.

>>1158052
have 100k
1 house full cash for 100k
or
leverage and get
5 houses 20% down
live in one rent 4
$800 extra cash per month 5 mortgages paid down.

30 years later
1 house for 30% real gains or 130k
5 houses @ 30% real gains = 150% gains or 250k