FACT: I love love love debt… in fact I can safely say that debt has made me wealthy…

I know what you’re thinking… my mum told me not to get into debt either!

But I’ll let you into a SECRET!!!  Are you ready?

There is such a thing as GOOD debt as well as BAD debt….

Let me explain:

One of the main secrets is to be smart with money and to know the difference between GOOD DEBT and BAD DEBT 

Here’s my overview and a breakdown of what GOOD debt looks like. Watch out for next weeks blog where I explain and delve into BAD debt! So… lets get started…


0020As a general rule, my interpretation of good debt is:

”Good Debt puts money into your bank account every single month or year”

This is having an asset like a house, office, boat, car or a business that actually pays money back into your bank account.

Good debt is used to purchase wealth-building assets that give you a return on your money invested and give you an income. The best assets even grow in value over time!

So as an example, you may spot the potential to invest in a property, renovate and either rent out as a monthly income or sell on to receive a healthy lump sum profit. Using other people’s money whether that be friends, family or the banks to do this with is considered GOOD DEBT as it will create an income and put something back into your bank account. This kind of good debt, well managed has allowed me to become financially free. And it can do the same for you…

Other examples that are deemed as good debt aremortgage

  • Mortgages – for rental properties where you earn profit


  • Educating in yourself – I became educated in property to enable me to become financially free and live the life I desired


  • Investing in a business that will give you a return on your investment


  • A car (although normally a depreciating asset) if it is rented out. It may also enable you to apply for a promotion which requires you to drive. If with this promotion is a pay rise, this can be considered as good debt


  • A boat, again if it is rented out and used as a business

If we have things such as boats and cars and they are not going UP in value and we are not renting or leasing them out, they are not really considered an asset. (We are talking normal cars and boats here. These could be classed as bad debt, which we will explore next week.)

So a debt on something that will earn us profit is classed a GOOD debt and is to be used wisely in creating wealth and freedom. Without getting into debt it can be a slow route to reach Financial Freedom.

If you’re ready to get your finances in shape and fulfil your life’s ambitions … why not come along to my only scheduled UK event this year.

Further details can be found HERE

If you dream about changing your and your family’s life by investing in property you do not want to miss this event!

Financial Freedom is closer than you think. See you there!

Live the Life you love


PS. I’ve decided to branch out and get back on Twitter and LinkedIn!

If you’re not already following me on Twitter, please do so! You can fine me @BelindaGrashion

Likewise with LinkedIn. Just search for Belinda Grashion.

Its about time I moved with technology so I’m not left behind!! xx


1 Comment

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