simple finance karo

GOOD DEBT VS BAD DEBT- COMPLETE GUIDE.

GOOD DEBT- In this, we will talk about ''good debt versus bad debt'' but firstly understand the meaning of good debt then after bad debt. Good debt builds wealth with strategic investments. That means borrowed money utilised for investments or purchases that could result in good returns or long-term financial benefits. Debt of this kind is frequently linked to investments that support revenue production, wealth accumulation, or career and personal advancement. Here are a few typical illustrations of wise debt: Mortgage Debt: Purpose: Borrowing money to purchase a home. Rationale: Real estate has the potential to appreciate over time, providing both a place to live and an investment that may yield returns in the future. Student Loans:     Goal: Borrowing is to finance skill development and education.    Justification: Investing in education is an investment in future income since it can increase earning potential and employment prospects.