Avoid Personal Debt

Personal debt destroys your net worth like nothing else. To be clear, I don’t think there’s anything wrong with borrowing money.

If you want to start a business or do big real estate deals, it’s often necessary and smart to take on debt. But we must be wise about taking on debt. Like investing, there are rules to it.

One thing is sure: Never borrow money to buy a car, electronics, or anything else that goes down in value.

But when it comes to more complex things like growing/starting a business, investing in real estate, or even your education, think carefully before you go into debt. Remember that borrowing money is not free.