How to leverage loans to create wealth
What Is Good Debt VS. Bad Debt
There are two kinds of debt. Good Debt and Bad Debt. Most people only know about bad debt. Bad Debt is credit card debt, house debt, car debt. Bad debt requires you to pay the bank back with interest on top of the monthly note.
While you are paying it back, the asset is not putting money in your pocket. The asset is also depreciating at the same time. All of these bad debts are liabilities.
What is Good Debt? Any asset that you purchase that puts a monthly cash flow into your pocket every month is good debt. Good debt is used to fund real estate rentals, farming, companies and oil wells.
Open the PDF & Print: Financial Mindset Worksheet III. Complete The Worksheet.