Before we dig into this more, my full philosophy on people come to me. Should I pay off my student debt? Yeah, you shouldn’t write it. You should invest. That’s why, if we’re living the simple passive cashflow thing, so we can make returns at 10, 20, possibly 30% in a turnkey rental, and go look at the rate of return.
You can make it simple, passive cashflow.com/returns or break down a simple, just turnkey rental, how you’re making money. Four ways mortgage paid down, tax benefits, appreciation of property, which I guess you could say that’s getting low. And then of course cashflow, okay. We’re going to pay off the debt as slow as we can.
So to optimize our liquidity going through our investments, but how do we do this smart with these other strategies? Yeah. Cashflow is the hidden gem in the income driven and forgiveness programs. A lot of people don’t significantly pay attention to if you refinance your loan, let’s say you have $500,000 in debt at 7%.
And if you refinance that loan, you’re looking at a five or $6,000 a month payment. Even if your interest rate is cut in half, that’s going to eat up a lot of your cord that are, want to afford it. You have family. What other obligations do you have? What’s your cost of living? You live in San Francisco or in rural Alabama.
All factor into decision-making, but the cashflow is huge. You can use that for other financial objectives, especially like with my dentist who usually don’t work for nonprofits, massive debt all the way up to him.