539 | The Pros & Cons: Taking Out a Loan?

The Chris LoCurto Show

Use the timestamps below to guide you better as a leader or individual:

• Taking out a loan. 0:00
  • The three big things to consider when deciding whether or not to take out a loan, and why going into debt is one of the biggest mistakes.
  • The short and sweet answer to today's topic.
• How to leverage your cash. 1:58
  • Leveraging cash to get out of bad sticky situations and get yourself out of sticky situations.
  • No other 1920 21 year olds know how to handle their finances.
• The difference between business debt and personal debt. 4:07
  • Understanding how to think about loans. First things first, is it a business or a personal loan.
  • If your business is bringing in over a million dollars a year, most of most of your business debt will be considered personal debt.
  • The first reason people take out a loan or a line of credit is because they might seek a loan to purchase real estate.
  • Chris has a fail-proof idea. He has heard about 4000 people lose in their business because of failure-proof ideas.
• How much money do you really need? 8:59
  • Real estate is one of the safest investments that you can make right now. Over the long haul, it should continue to go up in value.
  • When you are financially ready to make a purchase of this size, you have your financial ducks in a row.
• The best way to save money. 11:39
  • The best idea for a young couple is to buy the smallest thing they can possibly get in five years.
  • At the end of 10 years, you will have a large chunk of change that you can put down on your forever home.
  • The pros and cons of paying off a mortgage before buying a house, and why Chris believes that most people aren't prepared financially before they take out a loan.
  • The cons of buying a home before paying taxes and repairs.
• You’re inviting Murphy into your life. 16:12
  • You're inviting Murphy into your life because what's going to happen is the AC is going to break.
  • A prudent person with insight foresees danger coming and prepares himself for it.
• Most people get a credit card because they want to be prepared. 18:05
  • Most people get a credit card because they want to be prepared for an emergency. This is not how to prepare yourself financially.
  • Most people don't want to think about the future.
• What is the hardest work there is? 20:00
  • Henry Ford thinking is the hardest work there is, which is probably the reason why so few people engage in it.
  • The second biggest reason why people get stressed out.
  • The best way to keep up with someone who is debt free is not to buy what they have, but to make smart decisions.
  • Why business owners have the hardest time buying new stuff.
• The third reason why people seek out a personal loan. 24:06
  • Instant gratification puts us in the worst situations. The third reason why people seek out a loan or line of credit is debt.
  • Financial problems are a human character problem, not a money problem.
• Learn to leverage your present over your future. 25:49
  • Leveraging future earnings to pay for something now or in the present is called going into debt. Instead, learn to leverage present over future, a savings plan.
  • The pros and cons of debt, the pro is that you get gratification now, the con is you are now tied to the outcome.
  • If you've been a slave to debt, talk to anyone who has gotten 100% debt free and ask them how it felt the first month.
  • If not, get one.