Strategic Debt Use To Catapult Your Finances (Bestie) #768

Dec 29, 2023

This podcast explores the strategic use of debt and the misconceptions surrounding it, highlighting the importance of understanding personal debt tolerance and opportunity cost. The hosts discuss the differences between strategic and non-strategic debt and the potential benefits and risks of using debt strategically. They also delve into the nuance of taking out loans, the impact of inflation on strategic debt, and the downsides of excessive debt. In a lighter note, they provide beer recommendations from Wicked Weed Brewing in North Carolina.

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Understanding the Difference Between Strategic and Non-Strategic Debt

17:35 • 7min

The Benefits and Risks of Strategic Debt Use

24:41 • 12min

The Nuance of Taking Out Loans

36:44 • 5min

The Strategic Use of Debt

41:20 • 12min

Tasting 'Milking Cookies' and Recommendations

53:14 • 3min

Some folks will swear that taking a nap is bad for you. “It’ll throw off your circadian rhythm!” or “You’re being lazy- maybe it’s time to be more productive with your time!”. And of course, like many things in life, you could take it too far. For instance taking a nap while your friends are visiting or climbing in bed for 3 hours in the middle of the day will likely lead to poor outcomes- there will be negative downstream effects. But the reality is that a well-timed nap can bring a lot of benefits for many folks- it can boost your memory, increase your job performance, and ease your stress levels. Well, in the same way that naps are misunderstood, so is debt. Indiscriminate use of naps or debt could easily create a mess. But the strategic use of debt is an incredibly nuanced topic that we’re venturing into. Today we discuss how you can determine if you’re using debt strategically by looking at your finances holistically, how folks use debt as a crutch, why it’s important to understand opportunity cost, evaluating your own personal debt tolerance, and much more!

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During this episode we enjoyed a Milk and Cookies by Wicked Weed! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!

Best friends out!

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