“Only borrow money to pay for things that increase in value” – Seth
People often say “Debt is bad.” It’s not quite this clear cut. Bad debt is very bad; Good debt can be very good.
Bad Debt = borrowing to buy a depreciating asset or experience (shoes, boat, car, most vacations)
Good Debt = borrowing to buy things which increase in value (real estate, businesses, collectables) or increase your value (targeted education and training, for example).
Pay off your bad debt ASAP. Take on Good Debt, in small doses, after loads of education.
Got it ?
