What’s Your Relationship With Debt Like? - Money Tips 365 Day 48

Money Tips Daily by Charles Kelly, former IFA and author of

How do you feel about debt?

Do you think debt is good or bad?

Are you using debt to increase or decrease your wealth?

This comes back to your mindset around money and debt.

For instance, older people tend to be debt and risk averse. They try to pay off their mortgages as quickly as possible and often buy one house and stay there for the rest of their lives.

They are certainly not open borrowing money against their house, using leverage, to buy a second or third investment property to increase their passive income or wealth.

I’m not talking about bad debt or consumer debt, like charging everything to your credit card or borrowing to buy expensive cars and big TVs.

I am talking about, good debt and leverage to buy properties or start a business.

My relationship with that sort of debt is healthy, and I’ve always used leverage to make my money work harder for me.

However, you also need to take some precautions so that it does not get out of hand and you over leverage yourself or your company.

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