Hi.. How are you doing? Hope all is going well with each and every one of you.. 🙂
We at Property Fast Track wants to wish everyone a Selamat Hari Raya, Maaf zahir dan batin to all our Muslim friends, and Happy Holidays for everyone else! 🙂
So let’s get back to today’s topic. Would you prefer to retire debt free, or retire BAD debt free? What is the difference, you might ask? Well.. this very distinction is what will make some of us rich/well to do, and what will cause most people to suffer for the rest of their lives.
Most of us are taught that ANY debt is bad, and as much as possible, not to hold any debt. And we are encouraged to buy cash if possible, or try to settle our housing loans/car loans/any loans as fast as we can.
But there is actually a difference. As we all know, there is Good Debt and there is Bad Debt. Good debt puts money into your pocket, whilst bad debt burns a hole in your pocket.
And the more Good Debt you have, the faster you get to retire! What are examples of Good debt? Properties, perhaps? 🙂
Yet a lot of people are afraid of having debt, so they use only cash that they have, and do not leverage. This puts them at a serious disadvantage. It is already getting tougher and tougher to save money, and with costs going up, and salaries only slowly inching up, if any, a lot of people will not be able to even retire at retirement age!
So do spend a little bit of time thinking about this week’s blog post ya.. Have a great weekend ahead, and take care ya! 🙂