How to Go From $10K in Debt to Financial Freedom

0:00This is an iHeart Podcast. Guaranteed Human Earners, what's up? Look, building wealth isn't just about making money. It's about knowing where your money is working for you. That's why we partnered with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower personal dashboard or visit Empower.com.

0:37Not an Empower client paid or sponsored. Earners, what's up? Look, when you think about discovering small brands, what store pops in your mind? Well, it should be Walmart. Seriously, Walmart has thousands of small brands and they're all in one place. Just go online or in-store, discover and shop. It could not be easier. Every one of these brands has a real story and real people behind it. They're true American success stories, and you can find them all at Walmart. Discover thousands of small brands at walmart.com today. When traveling for events or festivals throughout the country, every dollar matters.

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2:27This is a great question. I appreciate it. I would allocate equally weighted to Tech2Index. Listen, I'm going to be real. Whether you have$50 ,000 or$50 million, if you want an easy return, you get concentration into tech to index and you get diversification a lot of times we want a complicated answer because we want life to be more complicated than it needs to be we talked about it last week like all the athletes who are investing and shout out to all you guys who reached out but a lot of times you're looking for an exotic instrument or investment to invest in when you just need a solid return so i would break the money up into four parts i would put it into vo vti i would be two tech companies um i would probably lean at this time towards google and nvidia for the two and i will hold a four or five year period um pay your bills on time if you can but uh the what would you do if you would start over question i was asked a lot at the podcast summit the other part of advice that most people don't want to give you is when you get on the a mountain of financial freedom, your job is to not slide down a mountain to lose the money.

3:43So I know you - Are you touching that debt? That 10K in debt?

3:51I mean, honestly, no. I will wait three or four years. I will wait. Because if you look at the return basis, that 10K in capital in five years may be 120, well, let's be conservative and say 60. Okay. The return, you're not going to get that money back. The most important thing, and why I say listen the first time, you can get the opportunity to buy another stock on a dip or a crash. You can't get the time back, though. That's why we always look back and be like, man, I wish we knew this in 2006 or 2005 when Apple was da-da-da-da-da. You can't get the time back, though. So I will wait to pay off the debt.

4:32I will deploy the money into the market, and hope for a long period of time, hope for five or ten years. you'll be okay. What about you guys? I'm with you. I'm with you. I'm holding off on the debt, which is why I asked because I figured you would say that. Yeah, I think your game plan is not bulletproof, but it's a pretty strong case. I think I would do something that's very similar. ETFs for sure. Strong ETFs, semiconductor technology. And then I would probably look at consumer discretionary just because of how it's performed over the past 10 years not so much how it's performed over the past two and then i would have i would have one like very specific like a drama would be a perfect example of a a semiconductor high yeah i call it like you know you have the aisle when we think of semiconductors in the supermarket but there's like that back shelf that has specialized things and so the memory piece would be one of example that i would have have an ETF to create that table that I like to talk about.

5:37Like have a strong table and build on top of it. So I would do that. I would do that. I would definitely do the market. Shadi, what about you? Yeah, for sure. Definitely the same thing. You gotta invest your money into the stock market at all times. SMH has done very well for me. TSM has done well. I think Microsoft is at a buy point, if you believe in it. It's the lowest as far as out of the major max seven companies, I think it's at the lowest point from its all time high as far as the buy potential for that one particular. QQQ is always going to be something that you can invest in. I strongly believe in QQQ because it's just how can QQQ fail?

6:22If you really think about it, QQQ is probably the strongest. It's indestructible. It's probably the strongest thing that you can invest in. And probably a perfect concentration of a ET. I've not cut you off, but I agree a thousand percent. Yeah, because there's really no flaws in it as far as if you're saying, if you believe that technology is going to lead the future, which I think everybody at this point in time believes that technology is going to lead the future. Well, QQQ is made up of the top technology companies and it rebalances itself over the course of time. Like I said, the number three holder in QQQ is Micron.

6:59Now, five years ago, my crime wasn't even thought of. But so no matter what happens, no matter what happens, as long as you have QQQ, you're going, like, okay, me personally, I have an IRA. My IRA is in QQQ because I just believe that the long term, what I'm talking about 30 years down the line, technology companies are going to give the best rate of return and instead of maybe picking one or two technology companies i'll just say i'll just have the leader in the technology space and i don't have to worry about rebalancing it because it's going to be rebalanced anyway and for the person who was asking um and of course the rate of debt so if you got 10k worth of debt and you had a 35 interest rate paid off but from like i've been debt free since 2018 you always go back and do revisionist history and calculation i paid the debt being debt free is a flex yada yada the remaining 28 000 payment that i paid to be out of debt that payment cost me 364 000 to everybody like you know i'll pay off the debt first trust me you're going to miss out on substantial upside in a tech tailwind that you're not going to be able to get that time back was it a great feeling to be debt free absolutely if i can do it again though would i have let the returns run up and then pay it off so it's not an either or it's a better allocation of money going into tech companies first taking some out letting the rest rollover than being okay.

8:52So I get it. Because, you know, I'm anti-debt. But I'm telling you, you're going to miss out on some substantial amounts of money knocking down the debt first. And for those who are anti-Dave Ramsey, that's the one thing that I disagree with is knocking down the debt first and not deploying the capital into the market. But at this point, like you said, you can't say the word. Do what you want to do. Like QQQ. You do whatever you want to do. QQQ is in five years, in 10 years, the last 10 years is up 555%. Like I said, and that's just easy. You don't even have to be an intelligent person. You don't even have to be an intelligent person.

9:29You can literally not even read Wall Street Journal. You don't got to watch Market Monday. You don't got to do anything. If you invest in Micron, if you're investing in the stocks that Troy is talking about and the options, you got to kind of do research. You got to kind of be in it. You got to be in it to win it. but you could be you could be a passive aggressive you could be a passive investor and you would have made 500 in 10 years listen crystal may put in 10 grand in 2020 2026 of 300 market to ever invest in i want and i want everyone watching tonight to answer what are you so damn afraid of this isn't 2002 when it was like a vortex of information was hidden from us.

10:13This is the easiest concentration. The Russell, because of Bloom, is up 22%. We're talking about numbers. If we hit these, or if I proposed in 2010, I can get you 22%, you would have thought I was Bernie Madoff. We talk a lot about ownership, and one of the most important assets you can own is your digital real estate. Too many entrepreneurs rely on social media platforms they don't control. Your website should be the center of your business. Framework helps you build a professional website without all the friction. It's more than a website builder. It's a complete website platform. Your entire team can collaborate in real time, make changes instantly, and publish updates in minutes instead of days.

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13:19And find the card that's right for you. Make sure you use our link so that they know Earn Your Leisure sent you. Terms and limitations apply. Subject to approval and eligibility. Built cards are issued by Column N.A. Remember FDIC, pursuant to license from MasterCard International Incorporated. When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check lift before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city.

13:54If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience save money check lift hope for the long term if you want to get rich from the market go to invest.com and join red panda please 2qq versus qqe and both financial threesome quit asking that question both qqq i qqq e do what y 'all trying to do when y 'all go to the party put them all in the room and have a blast. Financial threesome. Buy all of them. Hold them for 10 years. Like you can't do in your relationship life.

14:37If your relationship life gonna be cold, let the accounts be warm, my boy. Back to you.

14:46Y 'all be trying to add a freak off to the vest fest. Make them accounts freak off. Allegedly. Allegedly.

14:55Go see John Hope Bryant speak in the morning boy. Please. Yo, can I go to Josephine's with you? You need to go get some QQQ. Please. Go listen to Black Rock speak in the morning early. You hear me about that?

15:15Allegedly. Allegedly. Thank you. Michael Taylor latest round of Bitcoin sale. So it is that this has been happening pretty regularly now, but I'm selling Bitcoin to pay company dividends amongst other things. So what is this? I wanted to ask you my brother, because you have an international excursion. I was one because is an international asset um in your leisure time on the beach everything everything has been earned right was is this a cause of concern for you about allegedly about them selling three or four thousand coins um michael sailor i i think that the strategy of becoming a bitcoin treasury company because micro strategy was a software company that sells no software right now well the the dividends aren't the software but yeah they're a software company that became a bitcoin treasury company so okay if your business model is to become a bitcoin treasury company that's your business model i think you have to have more to it than that because what happens when bitcoin goes down how do you raise capital how do you pay expenses how do you pay dividends how do you keep shareholders like there is there are you going to use bitcoin as um leverage to buy real estate in the real world like i think that the business model has to expand and involve evolve others buy as much as much Bitcoin as we possibly can and then hold it for as long as we possibly can.

17:07I don't think that that's a sustainable business model. There's no revenue that's coming in. It's not protection from falls like this was happening, what's been happening. It doesn't protect you in a bear market. It doesn't lead to growth outside of just you're at the whim of Bitcoin. So Bitcoin is going to be fine. I'm not worried about Bitcoin. I believe in Bitcoin. i'm not worried about bitcoin micro strategy i think that they have they're not it's not over because they still have a lot of bitcoin but they have to really rethink their business model and it has to become bigger then let's just borrow as much money as we possibly can to buy as much bitcoin as we possibly can and i've i've said it before it's eerily reminiscent of kathy went to kudos to everyone at ark who love you dearly also too when brad gerstner is there and they asked him about bitcoin i noticed michael has been noticeably missing from those trump meetings nikki minaj is popping up with trump and michael said she said nikki minaj she's hot yeah i about a year ago these are my same sentiments about michael saylor and michael strategy i just didn't the the business model wasn't making enough sense for me so i'm not invested in it just for transparency but when somebody changes their thesis and doesn't change the business model that's that is concerning to me right the thesis used to be hey we're gonna buy it doesn't matter the price is going to go up that's the number one red flag though buy at any price we're never selling now that's the right thesis and really quick shout out to financial conspirator I'm not beating up on you guy but to offer five other products and just from a business case study it's often better to put the new features into the main product opposed to making a bunch of derivative products it's much better to do that open ai had this issue early too many models and it's confusing to the average person but once again people only believed in the vision because of the game josh brown came here and told you when i asked him about it and it was clear as day like this And this is why you have to study the financial products and the history of them going back to that reading 50 pages a day.

19:54The case study for this model does not work very well. Long term. And I also said they're going to attack him, and he's under attack. And the question becomes, how sustainable is it? Yes, when Bitcoin is moving and you're seeing that appreciation, great. But buying does matter. And gratefully for him, right? It's been consolidating in the 60 ,000s. Had this thing got down to 50, 40 ,000? The 40s. This would be a very drastic conversation. It has been consolidating. Is it an asset that we'll appreciate? Of course. We see it. We still believe in it. But the business models that they have, I'm just trying to figure out, well, where's the revenue?

20:38Oh, we'll just buy. We'll just buy it. It'll appreciate. Well, what happens when it doesn't? Right now, how do we pay dividends? Well, we got to sell some. and then we got to buy back shares. Okay, you're doing all the things, but how sustainable is that in the long term? And I'm not even saying long term, five to 10 years. Can you continue that for the next two years if this consolidates? Now, the patterns have shown that Bitcoin doesn't do that. But what if it, I mean, who knows, right? Let's say over the next 12 to 18 months, if consolidation between 60 and 70 ,000 continues or 75 ,000. A year ago, was that?

21:15We're going to see a lot more solos. Yeah. A year ago was at 457.23, currently at 177. For my technicians, it went from the 76 retracement, and it's underneath the 23.6 of the five year. Not a good sign. You better go call Trump and figure out your relationship. you and i'm gonna say whenever you you say buy at any price for any asset on earth i don't care if it's a water and that's a horrible thesis it always leads to trouble earners what's up look building wealth isn't just about making money it's about knowing where your money is working for you that's why we partner with empower empower is all about helping you invest well so you can go out and live a little.

22:06Their free Empower Personal Dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower Personal Dashboard or visit Empower.com. Not an Empower client paid or sponsored. When traveling for events or festivals throughout the country, Every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride.

22:43Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check Lyft could leave you with more money to enjoy the experience. Save money. Check Lyft. Earners, what's up? Look, when you think about discovering small brands, what star pops in your mind? Well, it should be Walmart. Seriously, Walmart has thousands of small brands, and they're all in one place. Just go online or in-store, discover, and shop. It could not be easier. Every one of these brands has a real story and real people behind it.

23:19They're true American success stories, and you can find them all at Walmart. Discover thousands of small brands at walmart.com today. The official language of football is trash talk. Late night group chats, memes, and unbelievable highlight clips. That's why Boost Mobile brings you our new global connection plan. The first plan ever made for WhatsApp. Get unlimited data, talk and text, international roaming, and calls to over 100 countries for just$40 a month. $40 price includes$5 a month auto pay discount. After 40 gigabytes of premium high-speed data, speeds will be lowered. Coverage not available everywhere.

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