Should I Invest or Pay Off Debt? | Phil Town

When you’re first starting out, you may be asking yourself “should I invest or pay off debt first?” In this video, I will explain how you can determine the best option for you, starting with analyzing whether your debt is ‘good’ or ‘bad.’ Start your path to financial freedom with my Rule #1 Investing Quick Start Guide: http://bit.ly/2gGHWsF _____________ Learn more: Subscribe to my channel for free stuff, tips and more! YouTube: http://budurl.com/kacp Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: + PhilTownRule1Investing Pinterest: http://www.pinterest.com/rule1investing LinkedIn: https://www.linkedin.com/company/rule... Blog: http://bit.ly/1YdqVXI Podcast: http://bit.ly/1KYuWb4

Comments

1. sir I am a Indian but I wish to invest in US market how to do ? please share it
2. Good stuff as usual, thanks for doing what you do... I would only add that, (IMO) "good" debt is a misnomer, there's only bad debt, and worse debt. Anytime you are under the power of another, it's a bad situation, even if you will eventually become free, by the use of debt, it is still not an ideal position to be in...
   
   With that said I believe in using bad debt as a means to make money I just understand I am a (temporary) slave to the person holding the "IOU". I follow 3 simple rules in the use of bad debt.
   
   1) Never over leverage. ie more than 50% of the value of my total holdings/assets, 10-25%is ideal, in other words $0.50 of debt for every $1.00 of realistically liquidatable assets, or preferably $0.10 - $0.25 for every $1.00 in assets.
   
   2) I only use debt when the purchase is time sensitive, and the cash is not presently available. ie the share price of a holding dips to a particularly relative low and is trading at a major discount.
   
   3)  I bring this (margin) debt to $0.00 at least once every calendar year, preferably before Jan 1st.
3. Hi Phil
   I just recently graduated with $5500 in student loans and got a job as a financial representative at a brokerage firm. I don't make a lot of money as of now but I'm thinking of putting way maybe $200-$300 dollars away every month and investing it over buying a new car. My question to you is, when will I see that investment start to generate some good income?
4. Phil question for you. You mention how you went from $1,000 to a million in 5 years time? How was that done what stocks did you invest in what was the time period? Also if I was only going to read one of your books which one should I pick?
5. Thanks Phil. We also follow Dave Ramsey so it is hard to hear "good debt" be we have used debt to improve cash flow. We did not go into debt but did borrow from one of our funds to extend your workshop for more education and getting it paid back with the knowledge so thanks for all you do!
6. Hey Phil! Thanks a lot for all the great information - I've bought and read both of your books and listened to your podcasts since episode 10 i think. Working as a physiotherapist, just graduated in february: and TODAY i finally paid off a 15.140$ bad debt bank loan and have already invested 1000$ in a great company that I've read all about, SEC forms, checked out the big 5 numbers and have bought it below margin of safety price. i'm 29, and really looking forward to a long life of good returns :) Keep the good stuff coming, all the best, Jakob from Copenhagen, Denmark
7. very good. for a non-regular investor, what would be a good broker to use here in the UK? thanks
8. Hi Phil! i am 15 years old. You are one of my biggest idols!. You inspire, and motivate me a lot, you changed the way i think, my mindset. You help me with a lot of my questions. Right now i am in the Preparation step. I am 100% on being a succesfull Entrepreneur and investor in assets. I have a question for you, what would you recommend me to do at the age of 15 for achiveing these goals?. Read books? Find mentors? Anything else?
   
   Hope for the best replies!🙏🏻