Stop Paying Debt If You Want To Be Rich

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Күн бұрын

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Debt is often portrayed in the worst light. You're told that you have to clear all your debt as the first priority before you can think about investing your money or buying assets.
But the truth is that paying off debt is not going to make you rich.
In fact, it's the exact opposite as I discuss in this video.
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Пікірлер: 367

@Shutityou 8 ай бұрын

Also folks, remember that being rich isn’t a bed of roses. You are no happier being very wealthy than just “reasonably comfortable”. Focus on building family and friendships as they are far more valuable.

@XORTION 8 ай бұрын

I don’t like people tho

@Loundsify 8 ай бұрын

@@XORTIONyou've been around the wrong people.

@FailedSociety321 8 ай бұрын

Disagree, people who say this have never had real money

@liquid_metal 8 ай бұрын

You lack wisdom.

@tomn1568 6 ай бұрын

Maybe not a bed of roses, certainly a nicer bed of roses than struggling to survive or just getting by. Perspective can be great for improving your mindset

@minimad8793 8 ай бұрын

I have utilised 0% credit cards to fund large projects and has worked well for me. Only take on debt if you know you have the ability to pay it off. I agree with Sasha debt can be your friend when used wisely.

@SashaYanshin 8 ай бұрын

We definitely need better education on how to take advantage of tools instead of getting hit by them on the head. 👍

@JevansUK 8 ай бұрын

More importantly only take debt to invest is things that make or save money, ie training for a better job, mortgage to save cost of rent.

@guyr7351 8 ай бұрын

I have one credit card it’s zero %, but have been hopeless in the past with first wife. We had the holidays etc and lived beyond our means. I remember seeing at start of covid figures saying a large portion of the UK workforce were only one paycheque away from being broke because of all The CC and other debts they had. That’s the toxic debt we need to encourage and educate people to avoid

@Shutityou 8 ай бұрын

One of the best loans is a zero percent credit card run alongside a high interest regular saver. The regular saver is a loss leader by the bank and can pay way more than the average savings account. You end up paying less for your purchase than if you had used your own money.

@indianarones 8 ай бұрын

I did great on 0% balance transfers until my income fell to a point that I couldn’t get approved for a new deal. Then I was lumbered with the debt for a fair amount of time.

@ajr993 8 ай бұрын

The only problem is that it's quite hard for people to increase income, and doing side hustled tend to be really stupid that require huge quantities of time for little return

@gordon1201 8 ай бұрын

The point about finding a way to increase your revenue is basically "draw the rest of the owl"

@krungite 7 ай бұрын

Yeah I never thought of "if you want to get rich, why don't you get 5 million dollars instead of 25k then you can invest much more" truly enlightening

@Rose.Of.Hizaki 8 ай бұрын

I mean even if you paid off your mortgage and you own your property, youre still in debt because the local council will demand they get paid money in the form of _'council tax'_ . Its never that straight forward. But yes, you do reduce the *OVERALL DEBT* but youre still connected to the system that is trying to fuck you at every given opportunity.

@fredbloggs5902 8 ай бұрын

You realise the council tax pays for services (rubbish collection, fire brigade, police, schools, roads etc.) right?

@Rose.Of.Hizaki 8 ай бұрын

@@fredbloggs5902 and they keep increasing it. meanwhile they are cutting back on public services and everything everywhere else.

@dumpsterplayer2700 8 ай бұрын

to commenters, he is not saying paying down debt is bad in itself, two scenarios 1 ) you have £1000, you have 3% interest on your debt, you can get 5% from the market, you will make net 2% by investing in the market over paying debt 2) you have £1000, you have 10% interest on your debt, you can get 5% from the market, you will net 5% by investing in clearing debt over investing in market. it totally depends on the NET expected return vs debt interest amounts what is the best

@SashaYanshin 8 ай бұрын

Plus there are other benefits to having a mix of debt and assets like liquidity and ability to weather storms or make moves where you would not be able to otherwise.

@bornach 8 ай бұрын

"you can get 5% from the market" is doing a lot of heavy lifting in this simplistic scenario. Over a long period of time then this might be true, but that assumes being able to fix interest rates over that same period or betting they won't go higher. Then there is the risk of being stressed into selling assets early, or being forced to put up more collateral to satisfy lenders when asset prices drop, etc. Unsecured loans will always have much higher interest rates that make them mostly useless as a tool for leverage.

@dumpsterplayer2700 8 ай бұрын

because a scenario is rare doesn't mean it isnt true, we're all adults, we can be given the mathematical concepts and tools and decide whether we want to invest in money accumulation or a rainy day fund.@@bornach

@rugbyf0rlife 8 ай бұрын

Simple reasons not to pay down low interest debt. 1. Inflation devalues debt every year you hold it. Imagine your salary is $50k have a $10k loan and inflation was 100% where your wage doubled too. That debt you took out is still only $10k. It was 1/5 of your income, but now it's 1/10 your income, but you already spent that 10k on an asset which is now worth 20k. Its an extreme example but thats how it works. 2. If debt was at 0% interest you could put it into a bank and grnerate a guaranteed return. As long as your interest is low enough, and whatever you do with that money has a higher return, you make the difference. The more debt you have, the more cashflowing assets you can buy. 3. Debt is tax free cashflow. When you sell an asset you pay capital gains on the increase. If you secure a loan against that increase, you get that cash without paying tax and your cashflow pays for the interest. This is how millionaires and billionaires access cash from their assets and offset taxes through interest expense.

@jsmithmultimediatech 17 күн бұрын

The thing is companies like Amazon invest their profits in R&D, though to be 100% honest I don't know if thats all companies like them that do that, I have heard also that they invest all their profits in R&D and claim it as an expense then not having to pay anything on it essentially (but I have no idea if any of thats genuinely true, in all fairness it wouldn't surprise me).

@MultipleUselessness 8 ай бұрын

The majority of this video breaks down to, "Just earn more!".

@Isclachau 8 ай бұрын

The trouble is the more you earn the more you spend the more debt you have 😂

@Reprogrammed_By_SEGA 8 ай бұрын

The problem is most western economies are 80% service economies and that isn't compatible with everyone getting rich and debt free. It means the majority are trapped regardless.@@Isclachau

@user-el2dn4zz3d 8 ай бұрын

Great advice Sasha and really appreciate your channel. Cash flow is king and using debt can help. Leverage applied properly is awesome. But the flip side of bad debt entrapment is miserable. Thank you

@mattgraham4340 8 ай бұрын

Message received, taking out a loan to purchase NFT apes right now

@SashaYanshin 8 ай бұрын

😂😂😂

@maugre316 8 ай бұрын

Totally get where you're coming from here. A couple of years ago I was on a low income so opened a credit card with 2 years 0% on purchases and used it to pay for some vocational training. Now I've got that skill which opens up a whole load of other work than what I was doing before. Meanwhile the cash to pay off that credit card is earning a fixed 6% interest that matures when the 0% term ends.

@leewright4317 8 ай бұрын

Yes please for more content like this & more on the first 2 points you made. Thank you & appreciate you making videos like this really helpful.

@gerardocrolla5894 8 ай бұрын

Great advice which I have applied for at least 30 years in my growth as a business man and in investment. Plainly put anybody that wants to be rich needs to have a business or manage your employment income and life like a business. Which is why unfortunately only a small percentage of the general population will be able to achieve it..

@danielcuomo 8 ай бұрын

One of the best videos on personal finance I have ever seen. So true!!!

@SashaYanshin 8 ай бұрын

Thank you!

@cambelin1545 8 ай бұрын

legendary, helped me reframe my debt in my head. its non toxic and it's funded asset purchases. nice to know I'm doing something right

@davideyres955 8 ай бұрын

However while this is lovely to picture with fluffy bunnies in the real world things are different. While you have an income your fine but if you lose your job then that debt is toxic and someone will be coming for your assets (assuming you have any) unless you can pay off the debt. If you could do that anyway then why pay interest when you could take your liquidity and pay no cost on the investment. Just reframing something in your head dosnt make it suddenly good. While using leverage to invest is in theory a great idea when you look at the past couple of weeks for the stock market you can see shades of the Great Depression when people were so desolate they jumped to their deaths as they’d lost everything. If you are happy with the risk and can live with the consequences then live like that and take the risk. At the moment the stock market is very down so there are some bargains to be had and likely a investing now will show good growth in the next 12 months. It could be the start of major conflicts in the Middle East and Thai could be the start of a big continual drop. Personally I have no debt at all, maxed out my S&S isa that frankly I could afford to lose so my risk is minimal.

@SashaYanshin 8 ай бұрын

@godsofwarmaycry 8 ай бұрын

Terrible rating on trustpilot, almost everyone saying it's a scam, basically no customer support, and the offer is a lie. Got anything to say in their defence?

@pkepa2000 8 ай бұрын

What about Tesla? You keep quiet @sashayanshin

@SashaYanshin 8 ай бұрын

@@pkepa2000 what about it?

@pkepa2000 8 ай бұрын

@@SashaYanshin Ihave been waiting for your Tesla Q3 analysis, but you've been keeping quiet😉

@SashaYanshin 8 ай бұрын

@@pkepa2000I stopped making those videos a while ago. Many reasons from channel outgrowing them to me not liking the toxic nature of the discussion.

@linguistengineer588 8 ай бұрын

No debt, is an angry letter problem... a you can't do this/do that, get this/get that problem... debt is potentialy good if you have a good idea; but if you don't, then it's a canine faeces sandwich.

@vendeux 8 ай бұрын

I totally agree with this. I like many have been through the phase of having a good few thousand on credit cards and loans. It really tanked my credit score and I had to work a lot harder to stay afloat which was stressful. I increased my income and paid it all off. Moving forward I will only obtain a mortgage as debt. I just see no other reason to get debt other than attaining property either to live in or as an investment. Cars, phone, utilities, taxes all getting paid once rather than going monthly. I have come to learn that reducing your monthly bills is the best way to stay below your means and by paying off things I can actually afford in one go rather than relying on credit means I can reduce working hours and job responsibility thereby reducing stress whilst sinking more money into the things that matter to me like a good home for my family.

@lynchs2441 7 ай бұрын

Exactly, for normal person the only acceptable dept is mortgage. There is one more exception if you have business and want to grow, because interest paid on loans taken out by businesses is a deductible expense.

@bernardogalvao4448 7 ай бұрын

Awesome video, learned lots. Keep them coming!

@Mikey_NoCap 8 ай бұрын

Credit card debt is truly evil. I managed to get clear of some lazy balances I had built up and literally the best thing I have done. Great content Sasha, as usual. What do you think is going to happen in November rates decision in UK?

@LJ-702 8 ай бұрын

Debt management 101, Gr8 video 💯

@morganleatherbarrow4123 8 ай бұрын

Great video! A lot of people would benefit of further detailed examples of videos like this!

@makemebad1978 8 ай бұрын

Most people in the U.K. don’t invest because we don’t earn enough to risk what little spare cash we have. Stocks are for the rich that throw money around without a thought of how to buy food.

@loveuanta7273 8 ай бұрын

I stopped paying my debt 2 months ago and now collection services have been harassing me night and day nonstop 👍

@rsdene 8 ай бұрын

Great video Sasha ❤ would love to learn more 👍🏻

@IAMMARTICUS1470 8 ай бұрын

This unfortunately is not simple to a very common form of debt: mortgages. This is as, unless you have lodgers or something like that, your asset is not providing any income, and LTV comes into play, so in order to minimise the interest rate on your debt you should pay off as much as possible every time you remortgage. It would be interesting to have a part 2 going more in depth on refinancing/remortgaging.

@fredbloggs5902 8 ай бұрын

Most houses most of the time are an appreciating asset.

@IAMMARTICUS1470 8 ай бұрын

@@fredbloggs5902 which typically doesn’t help you, as the only time you can realise those gains is when you downsize, and moving costs would eat an enormous chunk of those gains, if not wipe them out entirely

@fredbloggs5902 8 ай бұрын

@@IAMMARTICUS1470You leverage the asset to buy more.

@BlacksmithBets 8 ай бұрын

@@fredbloggs5902they don’t appreciate as much as most think though.

@snowbind 8 ай бұрын

But you need somewhere to live. If your mortgage is 5% and you can get a 5.1% return investing your over payment, you're up each month.

@behrensf84 8 ай бұрын

If you have credit card debt at around 20% then great! Paying down that debt is like investing and getting a guaranteed 20% return.

@mrfrugal1091 8 ай бұрын

Credit card debt should be paid as priority but long term loans that have low interest rates are ok to pay over time.

@SashaYanshin 8 ай бұрын

Or you can choose to refinance and direct cash elsewhere. There is always more than 1 option to consider.

@mrfrugal1091 8 ай бұрын

@@SashaYanshin Transfering to 0% interest is a very good option. Or taking out a longer term loan to cover the credit card is another good idea. Just do what the government does and kick the debt can down the road :) hehe.

@michaelfelli7661 8 ай бұрын

@mrfrugal1091 I know. I have friends with 2.87% mortgages that want to pay off their house as soon as possible. Why? Clearly you can make MORE than 3%. Even banks are paying up to 5%.

@BAmalakas 8 ай бұрын

@@michaelfelli7661 this is true to some extend - however at some point the savings income reaches a tax threshold may make the income similar to the mortgage interest rate

@cyanrazorCel 6 ай бұрын

As someone who used to be in bad credit card debt, I agree. But it can depend on the situation.

@lolabradley6548 8 ай бұрын

Great content!❤

@donaldduck5731 8 ай бұрын

Sorry Sasha, you don't understand the UK, you didn't have to put your shoes and socks on the radiators at university because you had 1" holes in your shoes and couldn't afford the bus in the middle of winter, you didn't drop off your degree to sign on the dole because you hadn't eaten anything for two weeks. You haven't had to work 7 day weeks because of bully-boy managers and appalling wages, high rents etc. You don't get it. I've paid off my mortgage, I owe nobody anything, I have food and heating and now I am talking with NASA about an idea I had at school they want to look at. You just don't get how hard it is in the UK, just to survive if you've had family problems or come from a poor background.

@dickieblench5001 8 ай бұрын

You know what NASA stands for don't you. Not a space agency 😂

@dariuszgutmanski6584 8 ай бұрын

I can't lie this comment about life in UK being hard made me laugh out loud to myself.

@wokelefty 8 ай бұрын

Bravo, you've done well. Not sure why it's relevant to Sasha's video though.

@hummels8393 6 ай бұрын

part 2 please, more detail would be appreciated

@vinceisbullish 8 ай бұрын

This was pure good. Please do a video on the income part

@andyasia 8 ай бұрын

I took on £100k of car loans at an average of 5% and over £100k on 0% cards with 0% to 3% fees so a blended rate on say £200k of about 4% and bought a commercial business. Way cheaper than financing from the bank. The future needs to have new versions of offset mortgages so we can leverage those assets easily.

@stuart6894 8 ай бұрын

Hi Sasha, very much appreciate your videos and agree with the sentiment here. Seeing money as fungible and thinking about net worth as assets minus liabilities is good advice, but I expect that most people do not do that and just think about their monthly income and what it can pay for (hence taking on daft car loans and not considering opportunity costs). Ramsey is right that personal finance is mostly behavioural (also borne out by the behavioural econ studies by Kahneman, Thaler, etc ), so being viglilant about not taking on non-productive or high interest debt along with automating investments seems to be the foundation of becoming wealthy. I would say avoiding stress is also important and the main problem with debt is it minimises the risks you can take with your career and other choices as you will always be concerned to make your regular debt payments.

@Adfonte 8 ай бұрын

Hey Sasha. Great video as always. What do you think about the Invesco S&P 500 Top 50 ETF (XLG) compared to the S&P 500 for passive investing long-term? Keep up the good work.

@williamrawlins9981 7 ай бұрын

This resonated with me, 10k card debt and being days away from running out of money due to clients not paying etc it's dam stressful! I do hold assets though in the form of vehicles but coming into chriatmas and again bank running dry due to, again clients not yet paying, shifting vehicles at this time is 💩 as the market is on its arse due to christmas... Vids are great though love the dry humour 😅

@MilesLangley 8 ай бұрын

So what I’m hear is I need to get a $100,000 loan and yolo it into a day trading account. Thanks for the financial advice

@SashaYanshin 8 ай бұрын

😂😱

@justina8721 8 ай бұрын

Buy crypto

@kenichi1132 6 ай бұрын

This video and your one on how etf investing won't make you rich (the video that put me on to you) are the 2 most important finance videos out their that people should watch imo.

@squoblat 8 ай бұрын

You can't save your way to being rich if your money devalues faster than you can save it. Earn more money, work for yourself, find out what your value actually is. The hard part about that is not expanding your lifestyle to meet your income.

@cafebueno4882 8 ай бұрын

Really good video. Opening our 2nd cafe at moment.. motivating video. Well done

@SashaYanshin 8 ай бұрын

Woop woop! The cafe just became a chain!

@darkangel686868 8 ай бұрын

Can you do more videos on increasing revenue? What you said about employees having a ceiling on income, especially in UK, is so true. But how do you realistically increase income via self employment? I wish there were a guide book (that wasn’t a scam product, which actually worked)

@habitandoproperty2166 8 ай бұрын

Rental property. Buy the worst house in the best neighborhood

@fredbloggs5902 8 ай бұрын

Most normal jobs are service based so both the maximum you can earn per hour and the number of hours you can work are limited. Even top NYC lawyers top out at around $700/hour (gross). Owning a business doesn’t have that limit.

@likemysnopp 8 ай бұрын

yes it does.. its called amount of money that exist to begin with. And then also what value that money is anyway. So stop with the mental gymnastics. Most are millionaires in korean yen for example.. while most arent millionaire in us dollars or euros.

@fredbloggs5902 8 ай бұрын

@@likemysnopp I never mentioned millions. You’re clueless.

@jschroeman 8 ай бұрын

Yup! A business can grow far more than just a single income

@gateway_12a 8 ай бұрын

....."choose the path of a frugal monk" - I love the vocabulary, great video.

@Reprogrammed_By_SEGA 8 ай бұрын

If you want to get rich get into finance speculation but if like most you are not interested in finance as a subject then you aren't going to learn it or be effective at it which means back to square one. This is akin to parents telling you to study or learn this because there is lots of money in it, but you are a human being and we all have diverse interests and passions and most of them are not highly monetisable.

@SuperCatbert 8 ай бұрын

debt is real, the value of your house is an opinion...

@hatch1018 8 ай бұрын

Sasha I love your content and also find you hilarious keep up the great work

@SashaYanshin 8 ай бұрын

Thank you!

@alexwestworth6962 8 ай бұрын

Debt is great: it's tax free money you can use to buy cash generative assets. But being frugal when you have youth and energy is a little stupid. Particularly when you look at those dying of cancer in their 40s.

@wataloadabollox 8 ай бұрын

One of the reasons inflation is still sticky is people are borrowing and not paying off debt either by choice or inability.

@CallumHutch1993 8 ай бұрын

Debt is different to everyone. I took out £7500 in Feb 2020 and put it in a stocks and shares ISA with Vanguard SPTMI. Worth £12300 this morning. It cost £98 a month in 2.8% and I've already cleared £3500 off the loan. Continuing too add monthly money in and as soon as its paid off ill do the same again if rates are around 3%. I have zero debt on anything else

@XORTION 8 ай бұрын

Rates are like 6-7% and the stock markets on its ass. Good like with that fella

@CallumHutch1993 8 ай бұрын

@@XORTION well if you read, mines was taken out at 2.8%. I will obviously wait until rates come back down (if they ever do). Also where abouts is the stock market on its arse? 9% YTD from where I'm sitting.

@Loundsify 8 ай бұрын

Nice

@Loundsify 8 ай бұрын

@@CallumHutch1993not for long mate, look at the Fed, they're deliberately going to destroy debt leveraged companies into the ground. That Ai bubble won't save you, personally I'd say cash is king for the next year then buy in again when the crash happens in the next 12 months.

@wokelefty 8 ай бұрын

Sold my stocks this year and now the cash is sitting in a fixed rate saver at 5.5%. Too bigger risk at the moment with ever increasing rates and disposable incomes being hit.

@angbar7470 8 ай бұрын

yes! a video on income would be cool

@JA-zh5xi 8 ай бұрын

I have been debt free for almost three years. I feel so bad for my friends in their late 40s and early 50s still paying a mortgage and car payments. The thought of that is crazy depressing.

@JA-zh5xi 8 ай бұрын

@@AA4PJM the people who follow this advice are usually the ones who lose everything when the economy takes a down turn and they lose their job. Bye bye house - either that or they have to work 60hrs a week with three part time jobs stressed about losing everything. So dumb

@macmaniac3080 8 ай бұрын

Where are you going tolive in then?

@JA-zh5xi 8 ай бұрын

@@macmaniac3080 in my paid off house?

@timmat8029 8 ай бұрын

Your mortgage is a long term investment, property is unlikely to dip below its purchase price including interest over 25+ years.

@JA-zh5xi 8 ай бұрын

@@timmat8029 your home is a place to live not an investment. Your mortgage is absolutely not an investment - it’s debt. You don’t own anything if you have a loan - the bank owns it and you are the banks slave until it gets paid off. The bank has a claim on your time - that’s the definition of slavery.

@Cassp0nk 8 ай бұрын

This would have mate more sense when mortgages were 2%. Now with them around 6%+ outperforming that in the markets after tax is not easy. Also markets seem expensive so would need to be brave to invest rather than pay mortgage.

@Peter-wc7dg 8 ай бұрын

Fingers crossed that the returns outweigh increasing interest rates and compounding debt.

@Martyr217 8 ай бұрын

I'm in option 2. I am 30% up in my trading account I have 1 credit card that get's paid off and I use for filling up and fixing the car. A chunk of my wages goes into trading account and £80 goes into my pension and another £50 goes into my private pension. And all I do is work in a warehouse making orders up for customers and I'm bringing in £27K (now because of a pay rise) and I also have an online store selling things in the States. So, it took a good couple years for me to diversify and spread out a little but I'm much happier now and if my boss pisses me off I can leave whenever I want, unlike most (I mostly look at it as getting paid to go to the gym at this point 😅🤣😂).

@EdTheDudeChannel 8 ай бұрын

The one thing I guess is when an interest rate change happens in the short term and that debt becomes too high to manage? Then perhaps that's the time to pay it down or get rid off. Thinking more along the lines of property here... A lot of people who had an "asset" now potentially have a liability. Would you still think holding on to it is the best course of action?

@joejanota707 7 ай бұрын

Negotiation. Regardless of debt, keep outgoings under in-goings. Debt means nothing if you don't have the money. Say any number you want, it's arbitrary. What really matters is how much you pay back a month, relative to your income.

@marianneleone3792 8 ай бұрын

Thanks!

@SashaYanshin 8 ай бұрын

Thank YOU so much! 😃

@HuwJones 8 ай бұрын

My understanding of things is that with scenario two they might be considered rich but they are definitely not wealthy...they are actually $10k in the red. The more debt you have no matter how low the interest rate....the more leveraged you are and in uncertain economic times that can be very risky. But that's exactly what Sasha is getting at I think....if you are prepared to leverage yourself and take on more debt (hopefully non-toxic debt) then you have a greater opportunity to make a bigger return on that borrowed money than you are paying in interest. Just like dieting - it's a simple money in / money out equation. Simples right?

@fredbloggs5902 8 ай бұрын

Scott Adams says that your job is not the work you’re given, it’s to focus on getting a better job.

@victorr.4607 8 ай бұрын

so true, It took me about 5 years to learn this :) and here it is in 13 min video :)

@SashaYanshin 8 ай бұрын

Thank you so much for leaving the comment and the support!

@ouethojlkjn 8 ай бұрын

It's like listening to my parents lecturing me but now at my age, I am paying serious attention this time round.

@Isclachau 8 ай бұрын

Frugal Monk vs Going out, family and then the woman taking half of your 💰. Hmmm …….

@JasonTheOneAndOnly 7 ай бұрын

Money management is so fun...

@synthmaker 8 ай бұрын

I'm using this exact strategy where I'm aiming to be at zero by having the same amount I owe in my mortgage invested in stocks and shares ISAs rather than paying the whole mortgage, it's a much better zero. The £20k ISA limit is a big benefit in the UK, I don't know any other country that is this generous, I intend to maximise it every year for a few years even if it requires borrowing or at least not paying existing debt. My investment of choice is Tesla shares, I've been deeply following Tesla and related subjects like renewable energy, energy storage, AI, EVs, robotics etc for many years and it's very obvious to me that even though it is a very volatile stock in the short term, it will 10x or even 100x in the long term. It is much more than a car company but even just in EVs, it is so far ahead of any other brand in many ways including the supercharging network, being able to charge at half the prices of any other brand and many other reasons. Owning a Tesla Model 3 Performance also helps me experience the moats.

@synthmaker 8 ай бұрын

@@Nousmourronsseuls I don't think Sun Microsystems is a good comparison. The only shares I've owned in the past apart from Tesla is Apple, the only reason I've done it is because I was very invested in it having built my career as a software developer specialising in iOS and MacOS. My degree is in Electronics Engineering and one of my first projects was to design a VLSI chip for GSM mobile phones, that was around 1990 while the GSM standard wasn't even implemented yet. I started developing for iPhone as soon as it came out and was well aware of the disruption it was going to cause, was also aware of the Apple Silicon disruption that came more recently with the M series of Apple processors. More recently I have been working on Machine Learning projects and followed in detail how Tesla's FSD works on a software level as Tesla is very open about it. My Apple investment turned out really well, then Tesla came along which I believe to have even more potential than Apple. Good investments are about knowing a company in detail because while everybody is being pessimistic about it due to their lack of knowledge, you get a really good investment opportunity. The so called professional investment managers are the worst at finding potential disrupting companies, they don't have a clue as they just look at current financial numbers and don't understand the technology. It's people like you that create these opportunities for people like me. Thanks.

@youngwt1 8 ай бұрын

Your strategy sounds a lot like a endowment mortgage, hope it works out better than they did

@synthmaker 8 ай бұрын

@@youngwt1 Not at all, my mortgage is a very normal mortgage, I keep paying it monthly, not just the interest, I have 2/3 of my house paid ( although that's mostly because the value has gone up a lot ). My number one recommendation to anyone is to borrow to buy their own home, similar to the advice in this video you have an asset, your house, and the debt which initially added up is zero but over time the house will most likely go up in price a lot while the debt goes down. The second recommendation is to invest in a stock and shares ISA although only with deep knowledge of the company you invest in. If my investment went to zero I'd still be fine ( I can't imagine that happening though due to many reasons including all the cash Tesla has in the bank etc ). What I'm saying is that even though I have nearly enough money invested to pay the mortgage now, I think it's much wiser to have it invested. So far it has worked well for me. Actually everybody I know that has made millions including my sister and my wife's aunt, have done so through shares. Specially in the US you get a lot of employment compensation through shares or options with companies like Microsoft, Google, Apple, Tesla which often go up multiple times in a few years. That's one of the downsides of Tesla that often loses talent when their employees make millions from their share compensations. You normally have to wait 4 years for the options to vest and by then needing a job might be an option. You rarely get wealthy through a salary.

@Piecenotwar 8 ай бұрын

What interest is paid on ISA accounts now?, I remember my interest rate being something like 1.5% and to be honest I’d rather keep the money at home than earn pittance in a bank account. My go to is bricks and mortar, no matter what happens house prices only go up in the long term even if In the short they drop, plus no zero tax on money made in property(if you are prepared to play the system)!!.

@synthmaker 8 ай бұрын

@@Piecenotwar The big tech companies have the potential to multiply your investment several times and through an ISA it's tax free. Every year you can invest £20k which is a huge amount compared to any other country. I wouldn't use a cash ISA, I would buy shares. The idea is that after 10 to 15 years you could have hundreds of thousands or even millions, you'd be able to take out just what you need or want whenever you want, really flexible and did I say tax free? It's a lot better than owning property specially with the latest tendency to protect tenants. Of course the very essential part of stock and shares ISA is to choose safe investments, the best way is to try to understand deeply how the company is doing, does it have debt, what margin it has, is it innovating, does it have cash in the bank, is the product in demand, do you own the products and experience why they're better etc. For me this was Apple and now is Tesla, ticks all the boxes making a very low risk investment with huge potential on the upside even if only one of the many innovative products succeeds ( FSD, Bot, Dojo, AI, Energy, Semi, Compact car etc ).

@Big-T- 8 ай бұрын

I only recently started using debt in this way thanks to Robert Kiyosaki.

@mohdsaeed4566 8 ай бұрын

Hi Sasha, Good provocative video. I am interested in your thoughts on the first two points. 😅

@SashaYanshin 8 ай бұрын

Quite a few comments on this. Maybe I should make some videos! :))

@stevenhadfield3151 8 ай бұрын

Personal debt isn't great though as a few bad moves or get very unlucky and you might get completely wiped out into bankruptcy, and then you'll lose access to any type of good debt for a very long time. You're completely right though for leveraging that debt in a personal business with limited liability.

@EveryCloud9999 8 ай бұрын

I agree. I wouldn’t run my personal finances like a limited business.

@Craftehh 8 ай бұрын

When do you define debt to become toxic. Ive invested over paying debt, however due to interest rates my student loan is at 6.25% so ive started to chip away at it (as well as investing). Thought's on this? There is probably 2 years left for me to pay it naturally via payslips maybe 3 depending on interest. Id guess id end up paying 20% more of the overall total if i ignore it.

@michaelbalfour3170 8 ай бұрын

Sasha, I had a question regarding this. I was thinking I should move to an interest only mortgage, and invest the difference in etfs. I have 30 years left, so could actually pay less and get more. Is this wise or daft?

@jasonaris5316 8 ай бұрын

Debt is a tool like anything else Can be good and bad just depends how where and when it’s used

@SashaYanshin 8 ай бұрын

True. But the general consensus and the way education is presented doesn't explain the other side so here I am doing my bit :)

@jasonaris5316 8 ай бұрын

Sure I agree 100% with you but the real issue is most people here in the U.K. barely make enough to survive let alone have the wherewithal to use debt as a vehicle for investment

@ekaterina1793 8 ай бұрын

I did not quite catch what kind of debt that could be, aside from the mortgage debt? I kinda follow the advice: I use the interest-free period on my credit cards while saving/investing those temporarily available money, but the gain is not meaningful as the size of the loan is not that big. I had an idea of taking a loan for investment purposes, but the interest rate is close to the avg market return, i am not sure it is worth the hassle.

@likemysnopp 8 ай бұрын

its not. You also have to pay every month so imagen that something crazy happen and the market tanks 20% in a few days. So you are down 20% now.. and the clock is ticking. You gotta make the payment next month as well and the market is not in a good mood at all. Doesnt even move. So you gotta sell a bit (pay tax as well on it I assume?) and then pay the monthly payment. Wait and hope that the market goes up again. And nobody knows when it will or if. Now if you invested your own money then you wouldnt feel this stress. Because you could wait it out. Except of course if you put in too much money that is.. that you gotta pay other expenses with. Anyway I think you get the point that debt is not some yearly payment, its monthly. And the stockmarket does not go up 20% a month.

@vids290 8 ай бұрын

Sasha, my fellow contrarian at it again, love it lol

@Piecenotwar 8 ай бұрын

I’m a mechanic by trade so from the age of 15 to 30 my annual income was £27k, I used debt and credit cards to buy property, at 30 I moved to Aus(best move ever) and rented out my uk house and now make a good profit and pay zero tax on it, I’m now earning more than$160k a year and sold x2 houses in the past 3 years and made $400k profit, at one point my outgoings were horrendous lol, paying for a house build and renting, paying private school fees…..all this was a calculated risk and has paid off and all with a eye watering amount of debt at one point 😅. I could just buy a house now with zero debt but I genuinely don’t see the point, I have no interest in not working so I’ll always have a income, I’ll just reinvest part of my money and borrow again to buy something else.

@reeceedwards6950 6 ай бұрын

Please can you expand on the two points on growth and return

@hazzer777 7 ай бұрын

Investment and business building only makes sense if you make more than you spend. If your debt amounts to more than you're likely to make, pay off your debt.

@BlacksmithBets 8 ай бұрын

The problem is people get used to having debt and very few people have the self control to not use that facility. Being debt free psychologically makes you far more likely to avoid debt. Mathematically it may not always be the best choice but us humans are emotional creatures who seldom make rational choices so paying all debt off is effective more so for the psychological effect imo.

@fguerraz 8 ай бұрын

Here we go again, being poor is a lack of character (or "self-control" as you call it). It's funny how poor people always make bad decisions, right? I mean they smoke, drink, don't exercise... And they have bad debt.

@IAMMARTICUS1470 8 ай бұрын

If you are in situation 1 you don’t have a car, a car is an asset, unless that car is worth exactly $0, in which case you should not be spending $2k to fix it…

@SashaYanshin 8 ай бұрын

Ok ok. You got me. Doesn't really take away from the point I was making :)

@fredbloggs5902 8 ай бұрын

If your car is an asset then you’re spending too much on it. A car is a tool that has alternatives (bicycle, bus, train etc.)

@IAMMARTICUS1470 8 ай бұрын

@@fredbloggs5902 anything you own that you can sell is an asset. A bicycle is an asset. Even a valid bus ticket is an asset

@jiraphat2200 8 ай бұрын

For the 1% of the people that know how to use money to generate income faster than the interest, get all debt you can. 99% of the people just use debt to buy stuffs they don't need.

@Babihrse 8 ай бұрын

I have only a mortgage as debt make an alright living and somehow i dont seem to be saving megabucks? The savings ive been building feel like theyve lost a third of their value. I just want to stick it somewhere now and make it at least grow as fast as inflation is going. I think i can forget about building an extension until we are like 2010 levels of recession

@paulduggan2 8 ай бұрын

05:20 - Yes, YES, fkin’ YESSS!!! (… please) 😊

@SashaYanshin 8 ай бұрын

Ok - quite a few people interested! :)

@AlexGogan 8 ай бұрын

As they don't teach this in school, it's the biggest problem

@habitandoproperty2166 8 ай бұрын

Stay away from the stock market. 1) no control. Valuation of the company is not the valuation of the stock price... 2) fluctuations , not only about the price , but also about the currency ( us dollar to pound... Eur to pound... ) 3) fees , even if the provider doesn't not charge you, you have to pay sdt , capital gain tax , etc... ( ISA can be an option, but there's fees and cap). 4) in and out , not so fast ( at least 5 days for getting back your money ) 5) paper asset. You can't feel or touch ( like property )

@tactileslut 7 ай бұрын

Volatility is what makes stock market gam^h^h^hinvesting fun. I set rules, I go to sleep and some mornings the phone tells me those rules paid off. Webull costs me 2c/sale and nothing on the buy side. Tuppence or bag, and the latter usually just means wait. I can wait.

@1029skatingirl 8 ай бұрын

I am exactly facing the dilema between either paying off the mortgage, or refinance for new cycle around 5% fix rate now and continue keeping money for other investment. What is APR rate would be considered as toxic debt?

@mortgagemartin3987 8 ай бұрын

He’s trying to keep this very basic and based on real life situations, the 2 proposed situation. Are very common for many people, most have f**k all and others have a little bit of something BUT it depends on the assets held the leverage against a those assets and how long the debt interest is LOW, you need to get a balance between keeping debt and paying it down. Prime example is property MANY have 300K house with sub 2% interest rates in the UK but that’s about to go BOOM and they will all be on over 5% with low to little equity they are f**ked when property prices drop and they are hit with negative equity

@henrybarnes2678 8 ай бұрын

I agree with much of what you are saying, but just can't stand to live with a cloud of debt over my head. It eats away at me 24/7, so, for my piece of mind, I am aim to be debt free in the next few years. Do I think I could be earning more? Sure. Am I more content in myself this way? Absolutely.

@tiborsipos1174 8 ай бұрын

Stealth Wealth lessons: There are two type of debt: a) that generates you income b) doesn't Sadly many people max out their credit cards on consumables and gratifications. Buying a car or motorbike on finance is good if that saves you time/money if it not straight your business capital. Like public transport is rubbish in my area. And I actually a great promoter of PT and cycling. But its ridiculous that on PT for me it would take 1.5hour to get work, when on bicycle its 40m and on vehicle its 15m... But buying a new car on finance when your current one works perfectly just because its "lame" to have a 2 year old vehicle is a bad debt. And what type of vehicle you want? Getting a Lambo is one of the worst flexing vehicle, because replacing parts are brutally expensive, and takes months to get the replacement parts. There is a reason why most stealthwealth rich people have a ford. Getting a startup business loan where you work hard to make sure the profit exceeds your interest is good. Maxing out a credit card on food and movies is bad... and I do believe in mental rejuvination, because lets face it, working becomes easier if you know you finance your hobbies with it. But it is still a long stretch to convince me that jagerbomb train on CC was necessary XD

@dividendhero 8 ай бұрын

Hey, I think I have to watch the video a 2nd time to fully understand. I currently have a mortgage with 1.6% that I will have to remortgage for April 2025. I'm making usage of the free 10% overdraft every year and wanted to try and pay off as much as I can between January to March 2025 because I'll only have to pay 1% overdraft fee. Are you saying I should just use the money and get it working in another sense or my approach is actually reasonable? Thanks.

@spartacus4929 8 ай бұрын

Instead of OPing, saving into a easy access savings account circa 4-5%, then lump sum it at the mortgage in April 25 will be a better bet.

@maugre316 8 ай бұрын

Oversimplifying here to make the point (my maths will be slightly wrong) but overpaying £1000 could save you £16 in interest in a year, or earn £40 in a 4% savings account. If you pay 1% to make an overpayment then you've saved yourself £16 in interest payments but also given the bank £10 of that, so you've saved yourself £6. So clearly better to put it into an easy access savings account, and potentially as much of that as you know you won't need into a fixed term savings account to earn slightly more interest. Once your mortgage rate is higher than you can get from savings then you *might* be better off overpaying.

@bornach 8 ай бұрын

@@maugre316This all depends on being able to predict interest rates when the time comes to remortgage in 2025. The problem is not that people don't understand debt - it is that they don't understand the risks associated with that debt.

@andyasia 8 ай бұрын

We're moving more into commercial property and on a simple basis, this is what I'm teaching my teenage daughter. We put down £25k on a £100k small retail unit that we can rent for £12k a year. We borrow £75k at 8% (current shitty rates) which costs £6k a year (interest only) and we bank £6k a year. Rinse and repeat.

@alansmith3733 8 ай бұрын

Surely if debt that has interest rates above inflation needs paying of ASAP. Low interest rate debts that is below the rate of inflation like mortgages that help you buy an asset are good debts.

@jonblackburn7634 8 ай бұрын

My pension "plan" is based on me dying somewhere around six months after I retire.

@Reprogrammed_By_SEGA 8 ай бұрын

Then having your pension taxed like working income in your final six months. 😔

@kevinsmith6433 5 ай бұрын

My capital yield is 7 to 10% my mortgage is 1.7% so I won't pay of the mortgage to make a loss most people think a mortgage house is the most important thing I think income stream's are more important

@fishslappr 8 ай бұрын

This advice would have been great 20 years ago.

@Hsjss-e6c 7 ай бұрын

Great content. The rich have been using this method for years. Borrow money when debt is cheap, invest, when times are hard move money to low risk high interest savings accounts. The rich know how to use debt to their advantage.

@Goady1000 8 ай бұрын

Yes and no to this question lol

@mitchpw2996 8 ай бұрын

I would like videos one the first two points. Cheers ❤

@SashaYanshin 8 ай бұрын

A few people asking!

@davidssshhhssshhh 7 ай бұрын

So serious question, should I get a mortgage? ??? I’m 28, 35years, fixed for first 5, £173,000 gonna put it into a house should I go for it now or wait?????

@timblagdon103 8 ай бұрын

Sound advice

@kei5985 8 ай бұрын

Yeahhhh, this is sounding familiar. I took out a 1.5k overdraft from my student account just so I can get a return of 10% after a year or so and pay back the account all because I wanted 200£ sneakers

@user-py7or7zi5k 7 ай бұрын

Debt owed on assets is the basis of thriving businesses.

@volnadr 8 ай бұрын

So all good and well but all I’ve heard you saying is enumerating few abstract ideas. Can you give us a step by step concrete solution? In my case what would be the best solution of investing or increase my earnings?I am a mere working class with around £40k in the savings (which I managed to save years ago, not anymore due to cost of living), not a lot of debt, but with a £300k mortgage, with a good credit score, a significant amount of outgoings (childcare, bills, etc.). I would probably be able to lock that £40k in something on medium term or a part of it on long term. My only secure option is locking it in a year or two of saving bonds but that wouldn’t make me rich nor will it secure me a good retirement.