6 Lessons learned from paying off $500,000 of debt
Ever bought something with credit that you knew you could not afford? Ever told yourself you would pay it off later but then never do? Ever felt strangled by debt payments? Ever felt confused about how money works in general? Ever think of yourself as stupid or dumb for the way you manage your money? Ever made decisions based from fear or greed that blew up in your face? Cause I have. When I was 21 I signed my first debt pledge for a $500,000 line of credit in 2007 (right before collapse of 2008 - what impeccable timing). At the time I was 21, making $8 an hour as a server plus tips and there is no way in hell I should have been approvedโฆ I would likely not even be approved for that type of loan now with good credit history and a healthy income. This debt agreement was the beginning of my education about money, debt, entrepreneurship, sales, marketing, taxes, insurance, advertising, investing and the money game in general. The debt was for a land development deal that never worked out and I was in the bank so much trying to avoid going bankrupt that they gave me a job as a traveling insurance salesman working on 100% commissionโฆ and this launched a 15 year career in finance. I learned the system from the inside out, became a CFP, became a top producing insurance and investment advisor, worked for the largest asset managers in Canada, had hired and trained more than 100 other advisors on how to build their careers and eventually realized that the entire system is fucked and is stacked against the every day person. - Taxes = 43% of the Average Citizen pays income to taxes when you add them all together - Debt = 43% of the Average Citizens income goes towards debt payments to banks - Fees = 3% Average fees paid to institutions on investment returns regardless of performance - Inflation = Slowly eroding the value of your dollar caused by printing money - Interest = The way the government and banks control money supply I could go on but simply put how free are you really when more than 80% of your hard earned income is going towards Taxes, Debts and fees?