A young, dark skinned, not too tall but a bit lanky college student named Emily in a pretty small suburb about 40 km from the city's central square was an ambitious dreamer who always hoped for the doors of financial independence to be opened unto her. Yeah, she was just that random girl who lived in a small place, limited enough but still dared to dream big. Like many, debt was no stranger to her as this became a burden, and she often wondered if there was a way to turn her huge debts (hers, Najito, her late mother and her unusually annoying brother who suddenly crashes into puberty and has not said goodbye to gambling) into a pathway to financial success like she has always envisaged. Little did she know that her journey, though a bit tough building from scratch, would lead her to discover a step-by-step guide on how to make money with all of the mountain of debt.
Emily's life was a constant struggle to keep up with the mounting bills and student loan debts from her own end, not to mention that of her family. Being the first born and almost automatically a decision maker and on the long run the breadwinner of the family, she had to just be financially free. She worked tirelessly, but her income as a shop assistant, tour guide, and an after school teacher were never enough to break free from the chains of financial pressure.
Until one day, Emily stumbled upon a flier handed to her by the vice president of the student governing body. Boy! He was so cute! She has had her eyes on him for a while but she wasn't going to make a move. More so, she could say that she was nowhere near his league. No, not that she was a dummy, in fact, she topped her class two rows in the year but the only clause was that she didn't have the bags to look good as she wanted to.
So yeah, the flier was an invite to a financial seminar organized by the press club in her school. I forgot to mention, Harry did get along with Emily and they exchanged contacts to keep tabs and make sure she attends. Butterflies in Emily's belly already! Moving on, at the seminar, she met a wise and experienced mentor named Mr. Clifford.
Having successfully transformed his own financial life, he offered to guide Emily on a transformative journey of her own to becoming financially free. Mr. Clifford, through his mentoring, made her realize that debt is not usually the enemy but it can be a tool for financial growth when used wisely. “Now that's tricky!” she wondered. “Does it mean I can go on to accumulate as many debts as possible and I don't worry about paying them back and everything just goes back to normal?”
Mr. Clifford elaborated to Emily the difference between good and bad debt. Bad debt, like credit card debt and high-interest loans, only added to her financial burden. On the other hand, good debt, such as low-interest mortgages or student loans, could be leveraged to create wealth.
To make money with debt, Emily needed to know how and when to manage her debts strategically.
Mr. Clifford taught her the importance of creating a budget, prioritizing high-interest debts, and negotiating with creditors to lower interest rates. With a clear understanding of debt, Emily was ready to embark on the path to financial prosperity. She learned about income-generating assets, like stocks, real estate, bonds, and even grants, that could yield returns higher than the interest on her debts.
Emily decided to start with real estate. She researched the market, analyzed potential properties, and secured a mortgage for a rental property. The rental income she earned exceeded the mortgage payments, turning her mortgage into a profitable investment.
Encouraged by her success, Emily delved into the world of stock market investment. With Mr. Clifford's guidance, she learned how to build a diversified portfolio and invest in promising companies. Over time, her stock investments outperformed her student loans' interest, generating additional income. Seems luck shines its way down Emily's lane. As if that wasn't all, she went on to more discoveries. This time not accumulating bad debts but being profitable in her financial expense.
Additionally, she discovered something interesting…
Emily discovered the power of the debt snowball method. She used the extra income from her investments to accelerate her debt repayments, starting with the smallest debts first. As she paid off each debt, her momentum grew, and her financial burden diminished.
With determination and discipline, Emily managed to pay off all her high-interest debts. Her income-generating assets continued to grow, creating a passive income stream that now exceeded her remaining low-interest debts. She had achieved financial freedom.
And so, Emily's journey from financial struggles to prosperity became an inspiration for many others seeking to make money with debt. She realized that debt, when managed wisely, could be a stepping stone to financial freedom. By leveraging her debts to invest in income-generating assets and using the snowball method to repay them, she had transformed her life for the better.
Remember, making money with debt requires careful planning, financial education, and discipline. While Emily's story is fictional, the principles she followed are real and applicable. With the right mindset and guidance, you too can embark on a journey towards financial success. As Mr. Clifford once told Emily, "The power to create wealth lies within you; you just need to harness it wisely."
Harry, the vice president, still keeps in touch with Emily and I do think that they have something interestingly beautiful going on. They talk, chat and even plan finances together. Whenever she wasn't sure of what to do next, she'd ask Mr Clifford and of course, Harry. He helped her stick to her financial goals and it's a win win for all. Her family is back together with no more drama and everyone contributed his quota to the smooth running of the family.
Six years down, Harry and Emily were blessed with two sets of twins: Jane and John, Benedict and Benedicta.
[The End]