How I think about debt

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Indeed, debt enables opportunity and reduces slack which reduces resilience. There is a balancing act here. The big question lies in how long a recovery you can stomach and which kinds of risk you're opening yourself up to.

Most people are taught to fear debt with good reason. This explains why financial succeed literature encourages embracing debt. And this leads to youjg people underestimating the risks associated with debt, which leads them to become old people who teach the next generator to fear debt with good reason. Circle of life.


I think it depends on the personality of every person. Risky and adventurous people might see debt as an opportunity to invest and increase forward earnings. I personally enjoy lack of debt like personal freedom.