I do agree with you guys when you say that it’s hard to truly get ahead without taking some risks. That is totally true.
Back when I was starting one of my companies, I had the option to take on debt (loans) or other investor funds (I would have had to give up equity). I didn’t want to do those things as I hated debt but I also didn’t want to give up equity as I was confident of my business plan. I did have to do some VERY risky things.
(1) I cashed in a big chunk of my 401k to start my company and fund operations and also to buy a few investment properties with it.
(2) I quit my corporate job where I worked for a decade and already made Partner and gave up the stability of a guaranteed paycheck to go start up a new company.
For most people doing these types of things above is MUCH more risky vs. taking on leverage/loans. So I do feel it’s important to point out that I too took risks to get ahead.
This was back in my early 30’s before I was married or had kids. No way I would take those kinds of risks now. I also agree with many of you that pointed out the time to take those kinds of risks are when you’re young.
People are posting excellent posts from both sides. I can understand both sides and I don’t think you have to give too big of extremes on either side as examples.
I guess the points are over leveraging can cause significant problems and not leveraging at all will never cause you to get ahead.
