Good Debt and Bad Debt

I’m very much a rich dad advocate, I did learn my lesson from him and I tell you never ever be afraid of running into a loan, once again as long as you have a sound plan and know that you could pay it back and profit form it, never hesitate to take one. Sometime playing it safe will not get you anywhere, being a mediocre is not good? Playing safe is not good? Risking is what successful people did before they became great. But you need to develop your skills first doing risky stuff needs great knowledge and it should be your first goal.

Debt

There two categories of debt, A good one and a bad one. Ok we got the norm that having debt is not a great idea at all? But I tell you no person who became rich that didn’t loan something; of course it should be a good one to be successful.  A good debt is a loan used not to pay for other debts but to make it grow and the profit is the one you will use to pay the old debts.

How to do it?

You will need a business plan that would work I tell you every business is successful it only depends on the owner to make it happen. As long as you know how to manage a good positive cash flow. Don’t be shy if you do get in a financial position where you need to borrow money, as I told you every ones does and every one needs it without you taking action of loaning you won’t get started and waste precious time. Money creates money, And ideas creates wealth.

Debt good debt should be a way to get put of bad debt, Positive cash flow creates profit. Ok you ask me, what is positive cash flow? Simple your expense should be lower than what you earn in that way you will not be in trouble all the time. Does it make sense? If you are just starting a venture never use what it earns for personal matters better invest it in to make it stable, those things create a business. So when you have an idea and needs to loan and your plans seems right? Go don’t be afraid to get one. Consider that as a good debt.