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Spoiler alert: Its a lot.
His main point is that comparing debt as a measure of financial success is totally useless.
Instead, you should look at yournet worth.
Also, read about some myths about debt that nobody should believe.
Heres how that breaks down:
What does that look like in practice?
Those repayments can hold you back from your financial goals.
Good vs. Bad Debt
Is there such a thing as good or bad debt?
A student loan can help you access higher-paying jobs in the future, while homes typically appreciate in value.
Thats why thinking in terms of good vs. bad debt can be dangerous.
Instead of qualifying your debt, it can be more helpful to address the total sum.
If you owe less than $105,000, you might feel pretty good about yourself.
But that number doesnt account for your income or savings.
Your assets include anything you own that has a positive financial value.
Your liabilities are things you should probably pay off, including loans, mortgages and the like.
Remember that certain items can be both assets and liabilities.
Most Americans have negative net worth due to high amounts of debt.
Building your net worth takes time and hard work.
However, its worth it this is the best way to set yourself up for long-term financial success.
What matters is that youre taking positive steps to build your net worth in the long run.
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