Comments on: The Simple Dollar Morning Roundup: Make Edition http://www.thesimpledollar.com/2007/06/18/the-simple-dollar-morning-roundup-make-edition/ Financial talk for the rest of us Sat, 16 Feb 2013 01:14:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: alex http://www.thesimpledollar.com/2007/06/18/the-simple-dollar-morning-roundup-make-edition/#comment-36229 alex Mon, 18 Jun 2007 17:28:17 +0000 http://www.thesimpledollar.com/2007/06/18/the-simple-dollar-morning-roundup-make-edition/#comment-36229 Trent,
in my opinion, you are too focused on eliminating or avoiding debt, and not focused enough on building wealth. Given your experiences, I think its completely understandable why that would be, but I think others should not be so focused on avoiding debt like the plague.

Creating a 12-month emergency fund, and prepaying your mortgage are steps which will put a tremendous hurt on your ability to build wealth (assuming you would otherwise invest that money). Sure its not wise to overdo it on debt, but the conventional wisdom about “good” debt versus “bad” debt captures a valuable piece of wisdom about the need to build wealth. As long as you take some reasonable, but small, steps to prevent having to go into bad debt, there is no you shouldn’t use the leverage of “good debt” to build your net worth, especially if you would like to retire early some day.

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