In his 2005 book, Good Debt, Bad Debt, Jon Hanson offers comments, quotes and advice in regard to the subtitle: Knowing the Difference Can Save Your Financial Life. Here are some excerpts...
“Take your net worth and divide it by the number of years you have worked. The answer is how much you are working for per year....Some believe that all debt on real estate is good debt. That is insane....In researching The Millionaire Next Door, (the authors) discovered that average self-made millionaires save or invest 15 to 20 percent of their disposable income....Do you work for joy or to avoid the pain of losing your possessions?...Do debts and obligations have a large say in what you do?...When you are debt-free, the real freedom is not just what you can do, but what you don’t have to do....Funds already spoken for must remain silent when opportunity knocks....For most people, just a reallocation of present income can start you on the road to independence. ...If you have worked for many years but have little or nothing to show for your efforts, it is because either you don’t know the fundamentals of spending or you choose to ignore them....If you don’t change the way you think and act now, your financial future will look pretty much as it does today. But, if you take steps now, you can change the ending.... Bad debt is money owed for trinkets, nonessential essentials (e.g., luxury cars), an excess of items, and other consumer junk....Carrying credit cards is like carrying a concealed weapon. In responsible hands, they benefit the owner; in the hands of the foolish, they are deadly.”
