Download Podcast

In This Video:

00:15 The difference between good debt and bad debt
01:19 No one ever got rich without getting into debt

Good day every one Daimien here, my next video on what you were taught wrong about money and investing series is about debt.

The Difference Between Good Debt and Bad Debt

One of the things that people say is “debt is bad,”. Guess what; actually some debt is really good. It’s very important that you understand the difference. Because you will never get wealthy unless you are able to live each debt to get you into bigger assets that then make you money.

What is the difference between good debt and bad debt? Well very simple this: Good debt is debt that you use to buy real assets, i.e, things that make you money. Like an investment property or a profitable business or anything like that. What is bad debt? Bad debt is debt that you use to buy things that lose money like cars, Jet Ski, holidays things like that. Things that do not bring you an income, that’s bad debt. By all means, you need to eradicate bad debts. Don’t have any, that’s good. But don’t be afraid of good debt. In fact, the more good debt you’re in, as long its associated, well by definition, it’s associated with an asset that’s going to make you money. The more good debt you’re in, it’s actually the better, when you think about it.

No one ever got rich without getting into debt

Now I’ll leave you with this thought. You need to get it inside your head. And delete the “debt is bad thing” and replace that with “some debt is bad”. But remember this line “no one ever got rich without getting into debt”. And it’s very true. Think about it, if you refuse to be in debt and you’re going to save up money, how much money can you save up in one year? If you just save every last cent you get from work, the most, think about how much it is times that by 20 years. Are you a multi-millionaire in twenty years’ time by saving? No, you’re not. And in twenty years’ time, the money wouldn’t be what it is now either.

So you cannot save your way to wealth. Some debt is bad but some debt is good. And if you wanted to be wealthy, if you wanted to get ahead financially, it’s really important that you understand the difference.

That’s it for me today. If you learn something from this post, or you think your friends will learn something from it too, just like, comment, and share with your friends. Let’s get this information out there. Let’s help people. They don’t teach you this stuff in school. And that’s why people struggle bash their head against the wall financially. Let’s get this information out there.

I’ll see you next time. Cheers!

Leave your comments below

comments