How to Go From $10K in Debt to Financial Freedom

**Shadi** (0:00)
Okay, let's do a hypothetical question. If you woke up with a lump sum of $50,000 with no assets, no investment, no car, no savings, $10,000 in debt and 500 credit score, how would you use that $50,000 to change your life?

**SPEAKER_2** (0:14)
This is a great question, I appreciate it.
I would allocate, equally weighted, two tech, two index. Listen, I'm gonna be real, whether you have 50,000 or 50 million, if you want an easy return, you get concentration in two tech, two index and you get diversification. A lot of times we want a complicated answer because we want life to be more complicated than it needs to be. And we talked about it last week, like all the athletes who are investing in Shattawada, you guys who reached out. But a lot of times you're looking for an exotic instrument or investment to invest in when you just need a solid return. So I would break the money up into four parts. I will put it into VO, VTI, I will put it to tech companies. I will probably lean at this time towards Google and NVIDIA for the two.
And I will hold it for a five-year period. Pay your bills on time if you can. But what would you do if you would start over question? I was asked this a lot at the podcast summit. The other part of advice that most people don't want to give you is when you get on the mountain of financial freedom, your job is to not slide down the mountain to lose the money.

**SPEAKER_3** (1:30)
So I know you are you touching that debt, that 10, that 10K in debt?

**SPEAKER_2** (1:39)
I mean, honestly, no, I will wait three or four years.
I will wait. But because if you look at the return basis, that 10K in capital in five years may be 120 Well, let's be conservative and say 60

**SPEAKER_3** (1:55)
Okay.

**SPEAKER_2** (1:56)
The return, you're not going to get that money back. Or the most important thing, and while I say listen the first time, you can get the opportunity to buy another stock on a dip or a crash.
You can't get the time back though. That's why we always look back and be like, man, I wish we knew this in 2006 or 2005 when Apple was da-da-da-da-da. You can't get the time back though. So I will wait to pay off the debt. I will deploy the money into the market and hold for a long period of time. Hold for five or ten years. You'll be okay. What about you guys?

**SPEAKER_3** (2:28)
I'm with you. I'm with you. I'm holding off on the debt, which is why I asked because I figured you would say that. Yeah, I think your game plan is not bulletproof, but it's a pretty strong case. I think I would do something that's very similar. ETFs for sure.
Strong ETFs, Semiconductor Technology. And then I would probably look at consumer discretionary just because of how it's performed over the past 10 years, not so much how it's performed over the past two. And then I would have one like very specific, like a drama would be a perfect example of a semiconductor.
Yeah, I call it like, you know, you have the aisle when we think of semiconductors in the supermarket, but there's like that back shelf that has specialized things. And so the memory piece would be one of example that I would have an ETF to create that label, that table that I like to talk about, like have a strong table and build on top of it. So I would do that. I would do that. I would definitely market them.

**SPEAKER_2** (3:31)
Shadi, what about you?

**Shadi** (3:33)
Yeah, for sure. Definitely same thing. You got to invest your money into the stock market at all times. You know, SMH has done very well for me.
TSM has done well. I think Microsoft is at a buy point, if you believe me. It's the lowest as far as out of the major Mag 7 companies, I think is at the lowest point from its all-time high, as far as the buy potential for that one particular. QQQ is always going to be something that you can invest in. I strongly believe in QQQ because it's how can QQQ fail? If you really think about it, QQQ is probably the strongest thing that you can invest in.

**SPEAKER_2** (4:19)
And probably a perfect concentration of a ETF, not to cut you off, but I agree a thousand percent.

**Shadi** (4:27)
Yeah, because there's really no flaws in it as far as if you believe that technology is going to lead the future, which I think everybody at this point in time believes that technology is going to lead the future. Well, QQQ is made up of the top technology companies and it rebalances itself over the course of time. Like I said, the number three holder in QQQ is Micron. Now, five years ago, Micron wasn't even thought of.