How Getting Into Debt Will Make You Rich

Join me on Twitter for updates that don't make it into YouTube videos!

Debt has become a dirty word. Everyone tells you that debt is bad and debt will ruin your life.

Most finance books will tell you that debt is the root of all evil and you need to eliminate it at all costs.

Cut down your spending to repay debt as quickly as possible and the ambition of living mortgage free has become the ultimate target of millions of people.

And in a lot of cases that is absolutely true and I completely agree.
Debt can have woeful effects on people’s lives.

It can have severe consequences on psychology and how you feel and high cost debt is an industry that needs to be wiped out and I hope it will.

But in this video I hope to shine a slightly different light on debt and show you that it will be the biggest driver of wealth for most people over time.

And hopefully I can explain how using leverage can bring about a significant amount of advantage and wealth which is exactly what often makes people rich and keeps them rich afterwards.

HOW TO SAVE FOR A HOUSE DEPOSIT & GET A MORTGAGE

💵 INVESTING PLATFORMS THAT I CURRENTLY USE
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.

DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.

[joemacdougall]

I've kept costs to a minimum and managed to save and invest my entire student loan for the year to the point that I'm not a negative net worth individual even though I'm still in university.

[snowbind]

Dude your channel is great. Thanks man.

[Jaha]

With the potential upcoming dip/crash as the US keep talking about potentially rising interest rates, in your opinion do you think now is a good time to put a sizeable sum in my Global All Cap index fund? Or do you think it's better to leave it where it is in a low interest rate account elsewhere? I feel like it could be earning good amounts of interest, but just cautious of the impending dip and interested in what you would do. Part of me thinks well it could accrue a fair amount of interest until the dip, and then will continue to earn more afterwards anyway.

[RaineLovesLondon]

Just want to say I’m so grateful for your videos Sasha. I was struggling to increase my credit score after irresponsible actions in my late teens (credit cards, shopping accounts, CCJs etc), and using your advice I’ve finally been able to get a credit card again (to spend 20% of total limit with, then pay off after statement generates with the direct debit) and it’s inching up slowly using this method. Thank you for helping me build my financial life back again.

[Mickthemove_]

Love your videos Sasha, Have hated debt for years, i brought a house in 1988, within a year the mortgage rate went to 15% and the monthly payment was 10% higher than my take home pay and the value of the house 10 years for the price of the house get back to its purchase price, i offloaded and then it trebled in the next 6 years LOL. Having said that, i totally agree with what you say, just buy what ever you can afford with finance but be certain that you can service the debt no matter what is thrown at you

[samarthgandhi]

Hi Sasha, I was watching your CPI video and it got made private. Will it come back?

[FP-mgqk]

Imagine you're applying for a mortgage. Should we initially pay the maximum principal possible? Or pay as little as possible and invest the rest?

[MaxTalks]

Crazy how just these minor mindset changes can make all the difference, thanks for the different perspective Sasha, not thought about it entirely like this before

[bc]

Sasha I want to get in to day trading not forex can you recommend a platform I'm looking at degiro as it has low fees

[ryansvlogsandvideos]

Really good information to think about thank you my friend 😊👍

[ukaosim]

This is good valuable content, using credit to buy assets that appreciate overtime is leverage 💯

[GSE]

Great video! I think wealthy people understand debt and can separate it from their personal wealth using Limited companies or other vehicles. A lot of people can't figure out cost (and opportunity cost) when buying a house, the interest they will pay for 30 years, re-mortgaging costs..etc and we need more videos about it. The idea that mortgage interest rates for a 10% deposit is over 3% for a 2 year fixed rate is scary, house prices are inflated and BOE has set rates lower than any time in history, imagine if base rates rise to 1% and how that would change mortgage rates if 0.1% is 3%+!

[vinay]

Very good video. I guess this concept has been known to businessmen for a long time but is only now gathering pace amongst others nowadays. However, the idea of debt has been changed by the ridiculously low interest rates, if the rates went up to 4%, a lot fewer people would buy this concept...

[magical_days]

Loved this video!
There is a huge psychological shift when we say we are financing’ a project....The ‘D’ word should only be used for describing for purchases that do not create future wealth opportunities. People think nothing of splurging thousands on holidays, cars and bemoan that they don’t make enough money 🤷‍♀️ Catherine

[seanjbattle]

Great video Sasha! I’ve just finished reading “rich dad, poor dad” and he talked a lot about using debt to generate cash. Never really even thought about it before, I’ve already been told to stay completely away from debt, it’s changed my mindset a lot! Thanks for making a video on this :)

[bufordmaddogtannen]

As someone who paid his house 30k and saw its value raise to 500k during the Irish boom told me the appreciation of your property doesn't mean anything unless you are selling it to move to a country where that money makes a difference.
In his own words: "yeah, I sell today for 500k, then what? Buy a smaller property for 400k and go through the stress of moving and renovating? Not a chance."

There could be the argument about mortgage payments being lower than rent, and the other argument about not having to slave for 40 years to meet the payments...

[MaxTalks]

Does this mean I should use leverage to yolo on stock options? 😉😂

[matthed]

Hi Sasha I have been watching you for the past 6 months and really have gained interest in investing and I just started my Freetrade account last week and made my first few investments I appreciate all the tips you have given to me however I forgot to use your link to join however can we both still get a free share after signing up ?

[Exciteddelirium]

Most people dont use it correctly though, they get a Mortgage then re-morgate several times, increase the time of debt, increase the debt above to get the next purchase as well as adding a little extra to update the new house, cheeky holiday or car as well and before they know it they have had the mortgage for 40 plus years paid 10s of thousands of pounds over what they originally planned

[huskmda]

Thanks for the content Sasha.
Could you make a video talking about cryptocurrency taxes, how they work, how much we owe, what’s the best way to keep track of how much tax we owe, etc... thanks.