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Think millionaires livedebt-free?
Some millionaires still opt to carry mortgage loans and auto loans.
Some carry business loans or even student loans.
Take Peter Landis, chief marketing officer ofNoble House Buyers, who prioritizes investing over debt paydown.
Landis learned that just because you could pay off a debt early doesnt mean you should.
Here are a few reasons some self-made millionaires arestill paying off student loan debt.
Liquidity
Sometimes you need cash, and lots of it.
Consider an entrepreneur looking to start a business.
As surplus cash comes in, borrowers could pay off their student loans, of course.
Or they could use that money to start or grow a business, for emergencies, or to invest.
Many certified financial planners even recommend that some clients do exactly that.
Shirshikov shares this outlook.
They were happy they did so, he said.
Mindset Shift: Good vs. Bad Debt
Good debt makes borrowers richer in the long term.
Bad debt like taking oncredit card debtto pay for restaurant meals or the latest fashions makes them poorer.
Instead, imagine someone taking out a business loan to launch their dream business.
The debt enables him to actually earn more each month.
For that matter, taking out student loans to earn a bachelors degree could serve the same end.
Sometimes, it makes sense mathematically to pay off the debt especially if it carries a high interest rate.
Many millionaires know to give these financial decisions a second thought rather than doing anything by reflex.
The Priority: To Sleep Well at Night
The math outlined above does matter.
But it isnt everything.
They did the right thing for their own peace of mind, which matters more than the numbers.
Peace of mind has its own value and worth.
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