Well this was kind of an interesting concept in life when it comes to money management. Basically, the advise is if you had a choice to be debt free or have say $2000 in the savings account the person said it was better to have $2000 in the savings account mainly so that you can have the feeling of not being broke.
Essentially think of it as right now you literally have $0 and no debt/liabilities of any kind. Now the theory I heard was that it is better to see yourself with money so in a situation like this it is better to say take a $2000 loan out of your credit card so that you can see your bank with money. That way, it is suppose to provide you with a mindset where you have money and can better work towards in achieving more. Basically, having money is better than being debt free.
You know, in some ways it makes sense and in some ways it doesnâ€™t. It makes sense where having the money will enable you to do more things with it, so in that sense it makes sense to say take a loan if you really need it. But at the same time here we are talking about just the â€œfeelingâ€ of having money to inspire you to do things. The concept is like say wearing an expensive piece of clothing which will give you the confidence speak to big shots even if you canâ€™t really afford it.
My thought is that it is better to be debt free. At $0, I personally find that a better motivator to make more money as I like the â€œfeelingâ€ of being able to make something huge starting at nothing as it is in those moments in life where you truly discover yourself as a person as well as conquering goals that will lead you to a path where you know that anything is possible.