Getting Out of Debt is Always not a Good Thing

Getting Out of Debt is Always not a Good Thing

The age old financial advise is – Get out of Debt, Cut Down your Credit cards and Never borrow money if you want to become financially free and rich.

Well, This advise was really true advise once upon a time (Before 1971) when the world was following the Gold Standard means when the money was backed by gold.

But well, today the money is no longer the derivative of gold but it is a derivative of the debt and that’s why the rules of money have been changed.

There are basically two types of debt – Good & Bad.

If you can understand the basic difference between the Assets and Liabilities than you will understand that any debt that is used to acquire assets is known as a good debt while any debt that is used to acquire liabilities is a bad debt.

The above financial advise is effective for the bad debt only. In reality, the rich take more and more good debt to become richer and richer. But well, unfortunately the financial planners and gurus from all around the world develop the mindset in people that debt is bad and you should get out of it as early as possible and you should never borrow money.

This financial advise generates a false mindset in people which prevent them to take a good debt. While rich teach their kids about good and bad debt and its importance and that’s why the kids of rich people grow younger they take more and more good debt to acquire assets and get richer and richer.

Remember that, Getting out of debt is the financial advise of middle class people. This advise creates a false mindset in your mind which will prevent you to take a good debt which is very necessary to become very rich in your life.

Unfortunately, our schools don’t give us any kind of financial knowledge about good and bad debt. And yes, believe me getting out of debt and stay away from the new debt is not a real financial education that the financial advisors from all around the world give you.

You should get out of only bad debt as early as possible and stay away from it but you should take more and more good debt to acquire more and more assets to grow the asset column of your financial statement.

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