09/03/2025
When you hear the word debt, what’s the first thing you feel? Anxiety. Shame. Guilt.
That’s because most of us were raised to believe all debt is bad.
Parents said “Don’t borrow money.” Schools never taught us how to use it. Society drilled in the belief that debt = irresponsible.
But here’s the truth wealthy people know: Debt is a tool. And tools aren’t good or bad. They just depend on how you use them.
Bad debt is borrowing money for something that loses value the second you buy it.
Credit cards for clothes, new cars that depreciate the minute you drive them off the lot, and financing vacations you can’t afford.
This debt takes money out of your future. It drains you, weighs on you, and doesn’t give you anything in return.
Good debt is borrowing money to acquire an asset that pays you back more than you owe.
Think rental property that generates monthly cash flow, education or mentorship that gives you skills to earn more, or financing a system that allows you to build an online business.
This debt actually buys your freedom.
Here’s the kicker: wealthy people don’t avoid debt. They master it. They use leverage to build wealth faster than their own cash flow ever could.
Meanwhile, the middle class stays stuck because they avoid debt entirely, or worse, they take on the wrong kind.
The difference comes down to financial literacy. Ignorance costs more than any interest rate ever will.
So here’s your Wisdom Wednesday challenge: Look at your debt and ask yourself…
– Is this keeping me chained, or is this setting me free?
– Did this purchase lose value, or is it building wealth?
If you start filtering every decision through that lens, you’ll stop fearing debt and start mastering it.
Because the truth is… debt isn’t the enemy. Ignorance is.