An Employee in Debt

An Employee in Debt

• Posted by COACH KRISTINE 

It is not bad or wrong to have debt. It's a matter of distinguishing which of your debts are good or bad.

You may not notice it in the beginning but debt starts to pile up as we move forward in our careers. As we climb up the career ladder, financial institutions would be more than happy to lend us their resources on top of the various loans that our company offers.

For those who have yet to incur debt (tempted to swipe your credit cards or borrow from friends to buy things), you would want to distinguish between good debt and bad debt. According to Robert Kiyosaki, good debts are those that you incur when you buy assets while bad debts are those that you use to buy liabilities. Whether you work or not, assets are things that put money in your pocket while liabilities take money out of your pocket. As a person belonging to the E-quadrant, I can see how we fall prey to sales and bargains. We become tempted to use our credit cards, labeling the items that we bought as assets.

I can definitely speak from experience since I'm not yet clean of debt. I'm very fortunate that Create Abundance Business Community has the 90-day wealth conditioning program as one of its tools. I understand that my current bad debts are just a result of my poor mindset prior to being exposed to millionaire minds in the community. Because of this tool and exposure, I am gradually creating a habit of managing my money to address all areas of my expenses.