Just a small correction there: debt can never be good.
But debt can be necessary, but that is only because some financial institutions have made it so, because many of them make their money from peoples debt.
So they spread the myth that debt is good, despite the fact that the world would be a far better place without debt.
I had $90k of mortgage debt that I could have paid off but chose not to because they were charging me 2.5% interest and I was getting 5% interest letting the money sit in a bank account. Debt was most certainly a good thing in that scenario.
Absolutely false. Debt is a tool. It’s a wealth multiplier.
You can use tools incorrectly, and that can harm you. But used correctly, they can let you do things quicker and easier than you could have without them.
Just a small correction there: debt can never be good.
But debt can be necessary, but that is only because some financial institutions have made it so, because many of them make their money from peoples debt.
So they spread the myth that debt is good, despite the fact that the world would be a far better place without debt.
I had $90k of mortgage debt that I could have paid off but chose not to because they were charging me 2.5% interest and I was getting 5% interest letting the money sit in a bank account. Debt was most certainly a good thing in that scenario.
Absolutely false. Debt is a tool. It’s a wealth multiplier.
You can use tools incorrectly, and that can harm you. But used correctly, they can let you do things quicker and easier than you could have without them.
No, debt can be good. If you’re making more money from an asset than the interest on the loan used to buy that asset, it’s good debt.
Good for who?
For the person holding the debt.
Rich people always say never to use your own money to start a business.