How Can I Use Debt to Build Assets?
If you have this question, you are on the right track! Even if you don’t have this question, we are glad you are here learning more about debt and assets :)
Let’s first define what an asset is. Assets are anything that can generate money for you in the future. Examples of assets include higher education, owning a house, stocks, and/or having a business.
Although many of us–for a variety of reasons–do not like having debt, sometimes it’s necessary for us to accumulate some debt in order to leverage it to build assets. For example, the majority of us need to get a mortgage to get a house or get a business loan to start and build a business. Another example of leveraging debt to build assets is getting student loans to pursue postsecondary education.
As these examples show, debt is oftentimes necessary to build assets. However, that doesn’t mean that you will let your debt drown you financially. It is important that you learn how to take control of your debt so you can properly leverage it for your financial gain.
The next blog post will unpack how you can take control of your debt to make it work for you, so stay tuned!