Going in debt to buy stuff is a wealth killer. Sadly, it’s easier than ever to fall into the debt trap. Almost all big purchases at stores will give a “buy now, pay later” option. Car dealers happily will give you a 10 year auto loan to purchase a truck you can’t afford. And credit card offers are shoved in front of us everywhere.

What do you do if you’re already in debt? Go HAM on your debt with 100% focus until it’s all gone. Once you’re debt free, flip those debt payments to investing. If you go hard at that debt early on it has a huge magnification effect on your future wealth. Every moment you’re EARNING interest instead of PAYING it, there’s a HUGE impact on your wealth.⁣‎‎

The left side of the post are all things that usually have high interest rates and usually non-essential purchases. Why is it maybe okay to use debt when getting an education? Most people don’t have hundreds of thousands lying around at 18 years old to be able to pay the absurdly ridiculous cost of education in this country. But don’t look at student loans as a blank check. When possible, search for scholarships, get a part time job, find ways to lower your education bill, and so on.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Vivi & Shane