BiggerPockets Money Podcast

Do You Need Debt to Reach FIRE? How to Use Leverage to Build Wealth

11 snips
Nov 12, 2024
Guest
Amanda Wolfe
Guest
Kyle Mast
Kyle Mast, a financial expert focused on debt management, and Amanda Wolfe, who shares her personal journey to financial independence, discuss the complexities of using debt to achieve FIRE. They explore whether paying off debt or investing is more effective for securing financial freedom. The conversation highlights the benefits of leveraging debt responsibly while avoiding pitfalls of 'bad' debt. They also reflect on their personal experiences and strategies for risk management, emphasizing the crucial role of savings in navigating debt.
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ANECDOTE

Amanda's Early Debt Strategy

  • Amanda Wolf initially prioritized paying off her low-interest student loans aggressively.
  • She now realizes investing the difference would have been mathematically superior.
ANECDOTE

Kyle's Debt Elimination Strategy

  • Kyle Mast prioritized eliminating all monthly payments early in his FIRE journey.
  • This allowed his wife to transition to part-time work sooner.
ADVICE

Scott's Advice on Risk-Taking

  • Take calculated risks, like house hacking, to accelerate FIRE, especially with lower incomes.
  • Investing small amounts over 30 years may be too slow otherwise.
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