The rich understand the difference between good debt and bad debt from "summary" of Rich Dad's Conspiracy of the Rich by Robert T. Kiyosaki
The wealthy have a unique understanding when it comes to debt. They know that not all debt is created equal. To them, debt can be a powerful tool if used wisely. Good debt can be leveraged to create wealth and achieve financial freedom, while bad debt can lead to financial ruin. Good debt is seen as an investment in one's future. It is used to acquire assets that have the potential to generate income or appreciate in value over time. This could include investments in real estate, stocks, or starting a business. The wealthy understand that good debt can help them build wealth and secure their financial future. On the other hand, bad debt is used to purchase liabilities that do not generate income or appreciate in value. This type of debt includes credit card debt, car loans, and other consumer debt. The wealthy avoid bad debt as much as possible because they know it can hinder their financial progress and keep them trapped in a cycle of debt. By understanding the difference between good debt and bad debt, the wealthy are able to make informed financial decisions that align with their long-term goals. They leverage good debt to grow their wealth and avoid bad debt that can hold them back. This knowledge gives them a significant advantage when it comes to building and preserving their wealth.- The rich view debt as a tool that can either work for them or against them. They are intentional about how they use debt, making sure to only take on debt that will contribute to their financial well-being. This mindset sets them apart from those who are burdened by debt and struggle to achieve financial success. By mastering the concept of good debt versus bad debt, the wealthy are able to build and sustain their wealth over time.
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