Is paying off debt)** or investing** (and potentially using more debt) the best way to reach FIRE)? The average American has $104,215) in mortgages), student loans,** credit cards**, and other debt. Where do YOU stand? If the end goal is FIRE, you need a game plan for your debt, in which case this episode is for you!
Welcome back to the BiggerPockets Money podcast! Not all debt is bad. When used responsibly, it can be a powerful tool that allows you to buy appreciating assets and **hedge against **inflation). Today, guest co-hosts Kyle Mast and Amanda Wolfe join our panel to share their thoughts on debt. We’ll share **how much debt we each have **(ranging from zero to millions), how our philosophies on debt have evolved, and how debt can ultimately help you reach FIRE.
But that’s not all. We’ll also discuss the types of bad debt that could derail your FIRE journey and the investments you don’t want to be stuck with during an **economic **downturn). We’ll even get into the most important financial protection against debt risk—savings and reserves—and why these funds should grow proportionally to your debt!
In This Episode We Cover
Paying off debt versus investing (and which strategy is best for FIRE)
Why well-leveraged debt is one of the best long-term hedges against inflation
The types of debt that could propel you toward an early retirement
“Bad” real estate investments) you don’t want to be holding during a market downturn
The most irresponsible uses of debt (that you should avoid at all costs!)
Why you should always grow your savings and reserves in tandem with debt
How much debt WE have (and how our opinions on debt have changed)
And **So **Much More!
Links from the Show
Mindy on BiggerPockets)
Scott on BiggerPockets)
Listen to All Your Favorite BiggerPockets Podcasts in One Place)
Join BiggerPockets for FREE)
Email Mindy: [email protected]
Email Scott: [email protected]
BiggerPockets Money Facebook Group)
Buy Scott’s Book “Set for Life”)
Find Investor-Friendly Lenders)
Pay Off Student Loans or Invest in Real Estate: Which Makes You Wealthier?)
Connect with Kyle)
Amanda’s Website)
(00:00) Intro
(01:23) How Much Debt WE Have
(06:15) Paying Off Debt vs. Investing
(13:46) Starting Your FIRE Journey
(21:51) Debt Strategy 101
(31:38) “Unreasonable” Debt
(38:23) Bad Real Estate Investments
(46:48) Key Takeaways
(50:18) Connect with Kyle and Amanda!
Check out more resources from this show on BiggerPockets.com) and https://www.biggerpockets.com/blog/money-580)
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