#2 – Learn the Difference Between Good Debt & Bad Debt
It has been said that there are three great destroyers of wealth: taxes, inflation and debt. In a nutshell, good debt is money borrowed for the purpose of investing in something, whether that be yourself, property or a business. Bad debt (consumer debt) is money borrowed for the purpose of spending it. Do not borrow money simply to spend it as this will not only reduce the amount of money you have left over to save, but it will very often lead to the habit of spending beyond your means, concluding with spiralling debt that will destroy your financial future.