Good debt puts money in your pocket; bad debt takes it out. Robert Kiyosaki's framework separates investment debt from personal debt, but you can flip a mortgage into good debt by using home equity to generate cash flow. In a cost-of-living crisis, strategic debt matters more than saving alone.
There is some different types of wealth of debt though. There's your good debt and there's your bad debt. Now, good old Robert Kiyosaki, he had a simple definition: good debt puts money in your back pocket, take money; bad debt takes money out of your back pocket. That's really what it is. It's investment debt or it's personal debt is what we're kind of talking about right now. The debt on your home is considered a bad debt because it's not putting cash flow in your back pocket, right? However, if you begin to utilize the equity out of it, you can flip that debt. From being bad debt to good debt and use it to put money in your back pocket. Okay, but it allows me to make every single dollar I have go a lot farther because if it's only just based on how much money you can save in life, then your ability to be able to get ahead is going to be incredibly limited, especially this day and age with the cost of living crisis and also the serviceability crunch that we're in.
