Which Debt Do I Need To Pay Off First?

Which Debt Do I Need To Pay Off First?


Which debt do I pay off first? Today,
you’re going to hear from my bipolar personality. Part of me –Stupid Kris is
gonna share one way to eliminate your debt.
And the other part of me –Smart Kris is going to share a very unconventional way
to eliminate debt. Enjoy. Alright. So, check it out. Today, you’re
gonna talk first to dumb Kris and then afterwards you’re gonna talk to smart
Kris. And then you can decide which Kris’s advice you actually want to take.
First we got dumb Kris. Alright friends. So, the most important thing that
we can do right now is actually get out of debt. So, if you want to get out of
debt as fast as possible. The first thing that you actually should do is take your
highest interest rate credit cards and pay that off. Because who wants higher
credit cards? Nobody. Dumb Kris thinks that you should first eliminate your
most expensive debt. The second thing that you should do once you’re out of
that kind of debt is you should get your house paid off. Pay off your house so you
don’t have to have house debt. That’s so important. And then number 3, I want
you to pay off your student loans. Basically, if your student loans and cars
are paid off your house paid off and you got no high or low interest rate credit
cards, you know, then you’ve got no debt and you’re successful. Oh, it is so hard
for me to like be dumb Kris. Now, don’t get me wrong. I get this is kind of
polarizing. But if you focus your entire life on getting out of debt, most of you
are not saving enough money that if you applied all extra pennies to your debts,
by the time you have everything paid off, you’re gonna be at retirement. And guess
what you’re going to have? No residual income because you have no assets. All
that, you can’t eat no debt. You understand this, right? Like when you’re
hungry and you want to go buy food at the grocery store or take your
sweetheart out to like a nice meal, it costs money. And if you have no debt, you
can’t say, “Give me free food because I got no debt.” They’re going to say, “What
planet you from? Give me money.” So, there’s something that is more
important than having no debt. If you had to choose between no debt or what I’m
about to share, let’s see what decision you would make.
Here’s smart Kris. Alright, check it out. Notice that my voice gets a little
bit deeper and more mature. And I look slightly more handsome. Just kidding. So,
smart Kris has very different advice for what you should do. Because if you’ve
got debt that you want to get out of, you can either trade dollars for hours at
your at your workplace. And take the excess
apply towards debt Lake dumb Kris would do. Or you can take that hard-earned
extra money and actually invest it. Now, why would I choose to invest that money
instead of paying up debts. I know Dave Ramsey is not dead but if you were he’d
be rolling in his grave somersaults. Goes like, “Kris. Kris, Are you trying to hurt
people? What are you doing?” It’s like, “Are you kidding me, Dave?” We’re all screwed if
all we do is try to a minimize our debt.” Listen, when they finally get that free,
ask them like if they’re living the most amazing full life, they’re not. They got
to have investments. There’s something more secure than no debt. It’s a higher
level of security and it’s called a residual income. Which is why I take that
extra money I save and I put it into something like real estate, for example
that gives me a gift every month. If I do it right, it has a residual income
component. It pays me 2, 3, 5 hundred dollars every month on one house.
And I realize this: I had debt to eliminate. But when I started, I had a
choice. Pay off the debt or invest. I can’t do both. It’s one or the other. And
the choice that I made was to invest. Now, I bought my investment and it produced
cash flow. And I could have put that towards my debt and in truth, I did. And
my wife and I we eliminated our debt that way. But if you think about it, the
investment is also a debt because I’m using a debt instrument. I’m getting a
loan on this house and now all the sudden ,I owe something on it. And this
dump Kris is like, “No, no, no, no. Get that big paid off.” And it’s like, “No, we’re
controlling it dude. Chill.” I feel like a little bit like Gollum and Smeagol right
now, right? Because over here I’ve got this house and you’re right, I have debt
but this is a smart debt. I get it over here. The dumb Kris is right. Credit card
debt is dumb debt. Student loans? I think it was an investment to help you get a
better job. But it’s debt and it’s not making you
money. This investment it is making you money.
It’s freaking paying you every single month if you’re doing it the right way.
You do a real estate deal, you have 30 grand let’s just say. And it’s like I
could wipe out all of my credit card debts and my car debt with that 30 grand.
And then I would save the money that I’m paying to service them. Or I take that 30
grand I buy a house? This one costs me 300 bucks a month.
This one makes me $500 a month. Which ones bigger? Which one gives tax benefits?
Which one appreciates? Which one goes up in value? Well, this one does. So, you do
this deal and all of a sudden boom! You double your money got 60 grand. Your like,”Kris,, I could pay off dumb Kris’s debt now and have 30 grand left over. Should I
do that?” And they’re like, “No, I’m going to take 60 grand. I’m gonna do it smart
Kris.” Dude, I’m going to double down. I’m gonna get 2 houses.” Uh-oh, 2 houses,
twice the cash flow, if you do it the right way. Twice the tax benefits twice
the appreciation, twice the growth. Man, this is awesome. So, all of a sudden 2
becomes 4 and 4 becomes 8 and then 8 becomes 16. And you wake up
one day a Megamillionaire. And you’re like, “is now the time to pay off my debt?”
It’s a game of arbitrage. That’s what you’ve just witnessed here. An arbitrage
means where do I make the most? If I have 18% credit card interest,
do I have alternatives where I can safely make more than 18%? If I have 4%
on my student loans, can I do something else with my money that makes me more
than 4%? J.B Shae a French economist from the 1800’s said that wealth is nothing
more than moving money from low yield to high yield. The correct answer has to do
with which one earns you the most that you can compound. That comes with cool
side benefits like appreciative growth and tax benefits. It’s pretty cool. So,
dumb Kris and smart Kris, dude these guys, they bash heads. They don’t like
each other. But I want to tell you something. I meet the most frugal penny
pinchers on the planet and I know some of them, related some of them and after
20 years of playing their game. Do you know what they have to show? Very little.
They’re often stooped and fear and scarcity. They’re not always the happiest
people. They can also get kind of nasty and crotchety. Over here on the
investment side, let’s get real. This is a risk. And now I ask you this: Which is the
greater risk golem or Smeagol? Is it paying off your debts and having
no debt or is it actually having cash flow and investments and a perceived
growth? You could lose money here. But in that
plan you are guaranty to fail. Which is the bigger risk? The safe,
conservative, sounding plan or the bad risky one? Friends, I’ve gotten where I’m
at today because I have invested myself beyond my debts. And I’ve invested myself
to the success that I’m playing at. Now, you have to have a smart mentor, a smart
team. You have to have people backing you with the proper real estate knowledge.
You cannot make stupid investments where you could lose your money. You’ve got to
be smart about this. You’ve got to do it once and you got to do it right. But
given that you find someone with the right track record. Like myself. That’s
done at 4,000 times. You find someone that can tee up the best deals. And all
the sudden, guess what? This is a far more attractive option and give it time,
this person can live the life of their dreams. This person never will. So, if you
got one life to live, what kind of life do you want to live? What to do? What to
do? What to do? Here’s what you should do” There’s a link below where you can get a
copy of my book for free. It looks like this. It’s called The Straight Path To
Real Estate Wealth. I also have my mindset book it’s buried down there in
the link. It’s called Limitless. This is all left brain this is right brain. This
is all about how you build wealth. This book is all about how you actually
mentally get yourself in the state of mind to build wealth. But this is the
first link that you’re going to find down there. And cover the shipping on it, I’m
gonna give you this book for free. Over 50,000 copies of this book have helped
now create many many many millionaires. And you might be the best one.
Friends, you gotta get some knowledge, you got to get some education. This also
comes with a consultation to talk to my team and say, “Hey, here’s my situation.
Maybe Kris really doesn’t get it. But these are my debts. What would you do if
you were me?” And that is a game I love to play. So, if you really want to know
whether this advice really applies in the end it all comes down to math. It’s
not a feeling. It’s not emotionally connected to one idea or the other. It’s
actually more about mathematically, which is the smartest. And mathematically, there
is a smartest. If you want to know what that is, get your hands on this book or
in the least reach out to my team and say, “Hey, team. Put yourself in my shoes.
Tell me what you think I should do. I need perspective.” And I want to see if it
makes sense or if it doesn’t. Becuase if it does, then
this video has the power to really change your financial stars in the next
10 years. Set you up and get you where you want to be. Thanks for watching. Make
sure that you are a subscriber. Videos like this coming everyday to you
designed to empower build uplifting to help you live the life of your dreams.

23 thoughts on “Which Debt Do I Need To Pay Off First?

  1. First

  2. Second

  3. Hi Kris!
    i have never herd of anyone here in norway that is doing real estate private. They are all working for big companies. What would you say would be the smartest way to do real estate private (for myself) her or should i start in another country?

  4. 4th

  5. Bad advice, it's best to pay off all types of debts starting with the highest interest rate debt asap. You do get monthly income by paying off debt. For example, once you pay off your 15 or 10 year mortgage or own your home 100% then your mortgage becomes zero dollars every month for life. Cutting $800 per month in rent or mortgage expenses down to zero is the same as earning $800 per month via bonds or 3% dividends.

  6. Multiple streams of income!!!!

  7. You motivate me every time I watch your videos ๐Ÿ‘๐Ÿ‘ trying to fix my credit and get started ๐Ÿ˜

  8. Great video

  9. Love it brother

  10. This is what I needed to hear, exact situation I'm in now. ๐Ÿ‘

  11. This. Is. It.

  12. I watched a video from Kris the other day and it changed my whole thinking, and I recently have been working harder and learning more about getting started.

  13. Hey Kris, do you think you could link me the contracts you use so I can download them? I just finished reading The Straight Path to Real Estate Wealth and the links didnโ€™t work. Thank you in advance.
    Edit: I read the first version Iโ€™m gonna order the second one once I get back to the US ๐Ÿ™‚

  14. I swear this guy is shadowboxing when he talks. Must burn as many calories talking as I do walking around.

  15. check the website & emails LIMITLESS TEAM!!!! I submitted my info. Let's suit up and partner up!!!!

  16. Moving debt from high interest to low interest is important if you canโ€™t pay off all your debt in one blow

  17. too much action Kris

  18. Hey, I don't live in USA. How can I get access to strait path to real estate wealth?

  19. What do you think is better 15 year mortgages or 30 year for getting more income?

  20. Hey man for real Iโ€™ve been subscribed for about 9 months and just using the advice youโ€™ve suggested has put my outlook and finances on a whole different trajectory.

    Thanks bro

  21. Cashflow is king

  22. Double K

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