- Image by David Robert Wright via Flickr
A recent CNN Money article featured Good Debt Vs Bad Debt. The truth is all debt is bad.
The Good debt Vs bad debt article features these statements:
- Avoiding debt at any cost is not smart
- Good debt includes anything you need but can’t afford
- Bad debt includes debt you’ve taken on for things you don’t need and can’t afford
The key here is defining NEED. We need very little of what we buy.
Basic necessities – food, shelter, clothing, utilities and transportation to get to work are needs. Everything else we buy are wants and even these basics stray into wants very quickly.
I am all for enjoying life, buying nice things and having fun; however I wish that I’d learned the truth about debt and personal finances earlier in life.
Our beliefs determine our actions and our actions determine our results and experiences – examine your beliefs to see if you might be better served by a different belief.
For me coming to understand that debt and unconscious spending steal our dreams has transformed my beliefs, actions and life.
