467-Debt: Should we Measure it Based on Financial Risk or Lifestyle Risk?

#podcast episodes (all) -stage 3: debt-freedom debt Jun 30, 2017

I've long struggled to know how to advise people with regard to debt. On the one hand, the use of debt can dramatically increase the financial returns of an investment. On the other hand, debt can have a dramatic negative impact on the lifestyle of the borrower when everything goes wrong.

So, how do we reconcile these two things?

I've come to see that they're two entirely different scales. Because they are two totally different scales (think: how do kilograms and degrees Fahrenheit interact with one another), it's hard to simultaneously factor in both.

A Rich Life Now and Financial Freedom in 10 Years or Less!

467-Debt: Should we Measure it Based on Financial Risk or Lifestyle Risk?

Two Step