Debt is a choice
We borrow money either to purchase an asset (home, car) or to cover our current spending.
Sometimes an unexpected expense happens and we borrow money to pay for it because we don’t have cash. When we don’t have cash for the unexpected expense it is because we spend all the money we earn on an on-going basis.
Taking on debt to acquire an appreciating asset may result in building wealth. To build wealth by taking on debt it is important consider the following 6 things…