Yo, today's QOD is don't borrow to consume borrow to have an asset that produces

Here we go

Welcome back to the quote of the day show I'm your host Sean Crox and a Sean Crox and

.com thanks so much to tune into our finance Friday episode where we talk about all things

money mindset we've got Garrett Gunderson back on the show and today Garrett is about

to drop a ginormous truth bomb on all of us. This is one of those episodes I recommend

you listen to several times over because we are taught to believe that debt is this ugly

mean monster of a thing that we don't want anything to do with but what Garrett's going

to do is he's going to give you a different way of looking at debt. This is huge listen

it. We've probably heard the statement of boy debt like the plague but the problem is

just like 99% of people identified debt is the wrong thing. So if we look at a balance

sheet a balance sheet is your assets versus your liabilities when you have more assets

than liabilities what do we call that net worth or equity right either one when you have

more liabilities and assets what do we call that debt most people collapse the word liability

and call it debt you can actually be an equity in 99% of the population would say you're

in debt so if I buy a business or a piece of real estate I borrow a hundred grand it's

worth two hundred thousand dollars that borrowing of the hundred grand is not debt that's

alone it's a liability it may sound like semantics but it will completely change behavior

I'm actually in equity when everybody else says isn't it risky to be in debt I don't

know I'm a hundred thousand dollars in equity from this transaction not in debt debt is a

function loans or liabilities debt is only if you owe more than you have net worth or

equity is when you have more than you owe so don't avoid debt thinking that just because

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