finances can be complicated, but they don't have to be.

I break down financial topics that may seem complex and overwhelming so you can start taking action on your financial goals.

I'm Ari Talby, and it all starts here on Personal Finance Redefined.

Welcome back to another episode of the Personal Finance Redefined podcast.

Hope you've been enjoying it so far.

Keep sending in those listener questions.

I love getting them and I love answering them because I get to hear more about what

is exactly that you want to learn more about.

And I think it's awesome.

So let's go ahead and get into it. Today's episode is about debt and specifically good debt versus bad debt. So debt has a negative connotation and to an extent for good reason, but

what debt is good, what debt is bad, I thought this episode would be helpful to align your

thinking around how debt really works and how to use it to your advantage.

So plainly, good debt is defined as money owed for things that can help build your wealth

or income over time. That means it's going to increase your future net worth. That's good debt.

So an example of that, well, that might be buying a home in which you need a loan to do so.

Well, that can be a great way to build wealth and your overall net worth. If you say bought a house for

$750,000, you likely took out a mortgage to do so unless you're absolutely

bawling, in which case kudos to you, but for the rest of us, let's say that home was $750,000,

put a down payment on it, and that home, by the time you still owe a mortgage and you still

have your paying your monthly, well, that home is now worth $5 million. So of course there a mortgage and you still have, you're paying your monthly, well, that home is now worth

$5 million. So, of course, there's mortgage involved and debt and all these things, but the general

example is to show what a mortgage can do for you is, well, great, you now have access to an investment.

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