Learn This Today or Be Poor Forever (Everyone Does It...)

[00:02] channel. That is, the disease of money that is sold to us with great normalcy. You've either already fallen into it or you're going to fall into it. Without a hypothesis, there is no hypothesis. This disease is called debt, something that is sold to us as normal or a good solution,

[00:14] their lives because they remain in an invisible prison that they often don't even friends, to family, it's one of those things that everyone says: "Oh man, it won't happen to me." But I grew up aware of the dark side of what

[00:27] this can cause. And actually learning more about this changed my life. So, whether you're 18 or 60, in debt or not, please, mate, time so we can solve this problem right here and now, and that's the

[00:41] the impacts of debt, when it pays to take on debt, because sometimes it can, when it doesn't, and three strategies to pay off your debts and get that money back every month, because this could

[00:53] more money in your pocket right now. And so this may also become the use your money. So hello, my name is Gabriel Ferreira. If you're new money online, following the entire path that took me from zero to a

[01:07] Forbes as one of the 30 under 30, basically applying everything I I'm not a financial advisor; what you'll find here is simply thank you to Trader Republic for supporting this video, but we'll talk more about them

[01:20] perspective on this, before we get to the practical part, let me tell you a true story, where I will use fictitious names to protect the a family of four: a father, a mother, and two children. They were

[01:33] paying off the mortgage and the car loan. Among the orderlies, paying be under control. And also to pay off the mortgage to the bank. Okay, but there in Portugal, the debt has to be a mortgage, and it's very difficult

[01:46] people it's not worth it either. So, everything's fine, as long as it makes had the idea of ​​starting businesses, but since he needed money, he here and there, seemingly harmless, a small thing here, it would stick, but they kept

[01:59] accumulating. Business deals don't work out, they do n't really hurt, but in an attempt to another. As if that wasn't enough, the father also has an accident and the car is totaled. The father then tries to solve the problem by secretly going directly to the

[02:12] who managed the money. So the mother, well, she would sign anything and everything that came her way was important, but the mother didn't even look at it. It was like, look, a signature here, a signature there, and it's in both their names. The truth is that after too much time, the mother begins to

[02:26] has in her name and didn't know about. Every time her cell phone rang, she panicked, afraid of discovering a new debt in her name. The parents, however, went bankrupt. They're both talking here. Ultimately, it was an injustice to the mother and

[02:38] another country to avoid these responsibilities here, while the mother two jobs and try to rebuild her life step by step, while the children which was still largely spared because the mother gave her time and health to try to

[02:54] to the children as unnoticed as possible, although, well, it was visible. Although this I know it's an extreme case, it's a more common extreme than people think. About 80% of people who go bankrupt are

[03:07] companies. And the truth is that we often have €150 left over from our salary each month, and we might want to take out, say, a monthly payment, let's say €100 per month, but you're stuck with this for

[03:20] most common loan term in the mobile hotel world , which is 10 years. And this €100 you're paying is €100 per month that you don't have, €100 per month that you have the during that time. Not to mention that most people don't think

[03:32] about their expenses throughout the year; they think they have €150 left over every month, but they insurance payments, holidays, vacations they what happens is that a moment like this comes along,

[03:45] another loan. And this becomes a never-ending cycle due to the common lack Portuguese, although it is something that is improving. Fortunately, but still very bad. We think more about the current scenario, but we don't think about the worst-case scenario.

[03:59] take out a loan than to simply put our Lord [in charge]. It's ready, right? Sometimes important to keep this in mind, and we'll talk about it shortly. Now let's say a car costs €1,000, €10,000, and that's the price you see

[04:12] simulation. And there's something very important called metic, OK? MTIC. That's is the number you need to see, because this will literally be the final value. on a car loan website and entered it for this specific car, and it

[04:28] for this specific car, and it gave me 16,542.80 €150 a month, it's actually going to cost me more than €6 if I finance it. If buy the car, no, obviously I'm not, but we'll

[04:42] take out a loan and not pay know, and from people who buy expensive cars, taking out a spoiler right there, but anyway, not to mention it's also

[04:55] this and have the answer to this, we have to know when debt is good or bad for us. And that's exactly what we're going to see now in this chapter about when to get into debt. In the world of debt, there's this term, "good debt."

[05:07] that is useful in our lives, even if it doesn't seem so. Debt isn't all bad. Now, most people don't have the knowledge to know that. You're basic rule is, I just realized I wrote this completely on top of the

[05:19] So, good debt is when, at the end of the period, at the end of the debt repayment period , you managed to make more money, OK? Therefore, this is a sign that you're likely to end up with a

[05:33] guaranteed, but that's your goal. Although this needs to be understood sensibly because what happens is another. It is fine? I'll simplify this just so you get the idea. Let's suppose you have a 10- year debt that yields 5% per year, and because you took on

[05:47] this debt, you are able to achieve a 10% will be making a profit. Let's say, 5% profit because this minus this equals this. So, this was a good

[06:01] understand anything, like, what this percentage thing is all about and everything else, it doesn't make any sense to me, then let's try to figure it out. There are several ways we can ensure that this debt is actually beneficial and that we can profit from it. The

[06:14] first option, which is more common among those who already have more money tied up in debt, even if they have outright, is to make your money work harder than paying off that money, okay? So, the

[06:26] don't have the money to buy it outright, you can see that the annual interest rates easily vary between 11% and 14%. So it's a stupid decision to buy in installments because allow, when there are much cheaper cars you can save up for and buy

[06:39] a monthly installment, paying off your debt, you're saving that money and then going to get to work? Transportation, for example. But this is not linear. Let's buy a ready-made car, nor can you wait for one, and you really need

[06:53] children, you have to take them to school, just any car won't do, and public transport isn't an option safely. And not to mention that your mind doesn't sleep well at night, knowing that because, who knows, it could endanger your children. So here, of course, you

[07:07] this isn't linear, is it? This isn't a one-size- fits-all approach; it's a case-by-case scenario. n't have transportation to your work. And these are scenarios where it might make car, because you'll be incurring debt, right? You'll be taking on debt

[07:21] this case, you get the money through work. Well, if you don't have a work, you can't make money. So here, for example, it might be worthwhile to pay off initially, you don't have transportation, you have the car. Another example

[07:34] of the box, but is super normal, is going into debt for your education, where you 're literally investing in something that could make you more money in the So, you went into debt to learn something, to try to make more money

[07:46] money than you incurred in the first place, right? Hence the "profit," in to turn debt into an advantage. The way of thinking is that by working or do more than by taking out a loan, or by taking out a loan, your mental health will

[08:00] improve drastically. So it can be good as long as it's sensible and reasonable, end of the month, you're not going to take out a personal loan just to do that, man, that doesn't have to be sensible, you're not going to risk your whole life. One thing I think is that if

[08:13] . So there you have it, this isn't linear, it's case by case. Now, regarding these 're wrong? It's wrong when, for example, you really want something but healthy way, so you have to take out a loan. That's wrong. It's

[08:25] the interest rates are very low and it easily pays for itself. But if, on the other pay for the house, then it's not worth it. But with such a So here we have our house, OK? Here's a very nice house and you're

[08:40] Here's a very nice house and you're paying a 4% tax rate, OK? It's this represents the total cost of your this is similar, imagine you invest in an asset, let's say an

[08:52] asset that returns between 8 and 10% per year, difference. OK? I have 4% here and I'm going to try to make it 8 to 10% profitable. Brutes, huh? This is all very crude. And to give you an example of an asset that has returned

[09:05] guarantee that it will be the same in the future, but there you go, it has been happening. I'll be using this video. It's a very reputable German brokerage firm that's becoming increasingly So I'm going to use an example of an asset that tracks an index, which is the MSCI

[09:22] World, OK? In other words, by investing in the ETF that invests in MSI World, you will be investing in more than 1,300 companies, simultaneously spread across 23 you can find companies like Apple, Microsoft, Amazon, etc.

[09:35] index itself has grown with an average an idea, and this is gross, but even if it were six or seven net, it would

[09:49] already compensate for the 4% we have here, for example. So, let's say I want like, right? This is not a recommendation, it's just an example we 're using here. And while I was researching MSCI World here, I can already see the share

[10:03] here. There are several MSCI Worlds articles written about it. It's as if several . Okay, I chose this one from ISES Core MSCI World. I can access various information about the fund here, such as the issuer, annual cost,

[10:18] all of that information. And I have two options: buy or save. What happens? If I save, I can, for example, put aside, let's say how often I want to invest. And this here can

[10:31] I want it monthly and I want it to start at the beginning of the month. And then I receive it here, I have a savings plan, and I don't pay any brokerage fees month I invest €100 here, which could be a way for me to try and make

[10:43] my money grow above, for example, this TEG (Term of Return). It could go wrong, it there's always the possibility of things going wrong. Here you have everything from ETFs that World, the S&P 500, the Foodsale World, or

[10:56] funds that buy gold or Bitcoin, which that you have a cryptocurrency portfolio, you have fixed income for things that are literally more fixed, for example, bonds, private markets

[11:08] easy to invest in through the stock market, for example. If you want to see all of this for description so you can decide for yourself. Now let's suppose that in this glance makes sense, the numbers add up

[11:21] every month. This makes it smart for you to take out a loan, for example, to wait until you can make a larger down payment to lower your on our Financial Atlas platform, we have a training course with Pinheiro about

[11:33] think about and understand everything you need to pay attention to when you want to take out a it's on our platform. And really, before going into debt, think about what month, to yourself, to your life.

[11:47] doing it? Or on the other hand, think about how much you 've gained from taking on debt debt is going to stress you out, keep you up at night, or anything like that, rethink it mental health, not even a new car. That is, as they say in football, it's game by

[12:00] game, case by case. And each one must be analyzed separately. Now, there are bad debts that rarely turn into good ones; personal loans, whatever they may be , are rarely a good decision. Vacation credits,

[12:12] credit cards that can be used effectively, but many people don't know how to use them. And this is all a no, OK? No, period . But there's a super important point here . Imagine you have €1000 wide. You should either take them and pay off your

[12:25] invest it in the market, as I showed you a moment ago. And that's what we're going to see in this next point: amortizing or investing. Therefore, we will either pay money in the market. And this is one of the things that will make you more

[12:37] improve your finances, my team and I have created a 100% create your financial learning plan within those seven days. This is day you receive a short email with a small lesson and something

[12:51] really think you have nothing to lose by doing it, it's free, you don't pay anything. going back to the video and using that logic I taught you about trying to whole perspective I've been showing you, there are already things, like some

[13:05] car loans, personal loans, credit cards, etc. It's highly unlikely that a person in their normal daily life can make more money than the interest rates on these you can use it to pay off the debts, the money is guaranteed to be returned to you. Please

[13:17] very simplified example, but it gets the idea across well. Imagine you have €10,000 in debt, OK? Therefore, you owe this money. Only the €100 is interest, and the pay if you were paying for it yourself. Therefore, only this €100 is

[13:33] actually the interest. Therefore, €100 is 10% of €1,000. So, imagine that you take your money and pay down the €1,000 you have, and you manage to save this money here, these €100. Basically, it's as if you've recovered 10%.

[13:46] than putting that money to work hoping to make a gross return of 10% people, it's actually smarter to take on debt with high interest rates. pay €150 a month towards some debt and you manage to pay it off

[14:00] completely. You're literally left with over €150 every month that you're no longer 's not just about money. Think about the mental relief that comes from not owing anything to anyone. strategies to pay off your debts and regain control of

[14:13] efficiently. Each of these strategies has its disadvantages and advantages. So I'm going to tell you each one, how to do each one, and suitable for. [laughter] So we'll have three

[14:26] form, which is the snowball effect of debt. This was the first method I ever learned when I decided I wasn't going to have debt, except for the house. And Makeover, when I was still in college. The goal here is to

[14:39] owe, from the €5 you see your friend owing to the car you might be paying for, and you'll order this from the smallest debt to the largest, how does this help you? Imagine you have a PlayStation 5 here, you're paying €50 a

[14:54] here. This means that you will now have the money you used to pay off this debt plus €50 to pay off the next one. So you're going to use that money plus the €50 to beat this one . Then you'll take the money

[15:06] and you'll use it to pay off the next one. And you will do this repeatedly. Look, Harvard and everywhere else, and they really do say that people feel more capable of continuing to make this kind of progress, although financially it's not

[15:20] easier to maintain. So if you're someone who needs motivation and prefers to see these financially there's a better option, this is the best rule. Honestly, speaking from a human perspective, right? In other words, as a human being,

[15:34] is truly the easiest way to fulfill it. The second rule will be the avalanche of debt. Here you ignore the jump and order only by the interest rate. Here you're going to look at that TG thing, OK? And you're going to list them from the most expensive to the

[15:47] put the name here. And this method, for example, is more financially advantageous to achieve now because victories take longer to come. So, imagine you have €1,000 on your credit card at 14%, you have, say, €20,000 for the car you

[16:02] 're paying for, you shouldn't have bought it at 10%. Then you get some kind of loan at 9%, and that's it, you just do it line by line. So, you'll eliminate the ones that are doing that successively. Now imagine that your debts have a

[16:15] worth it. This only really pays off when there are such significant differences. Otherwise, you can do this section here. Finally, if you prefer to pay only one installment, you have this third option, which is the consolidation method.

[16:27] consolidate all your debts that you have here, okay? If you do that, it has to be renegotiated. Here you focus on those debts that are more expensive, and this process usually allows you to reduce them to what is essentially the overall APR of what you

[16:41] owe, okay? In other words, you can lower the amount of debt you'll be paying, resulting in simplify the work and it's another viable option, although I would say it's the least famous of these three. Now, knowing how to manage debt isn't

[16:53] an emergency happens and you have nowhere to turn, you'll have to you have to do? You need to create an emergency fund, but it's not just about saving to follow to really help you build this lifeline. If you want to

[17:06] emergency fund, literally with all the steps to truly succeed which is the ideal complement to the video you just watched. As always, watched. As always, thank you so much for watching.