When Debt Can
Create Income
Take advantage of revenue
generating opportunities.
If you are confident that the expenditure will bring in more than enough income to cover the loan, incurring debt for this purpose may be just right.

Here are some examples:

  • Starting or buying into a business. Often the opportunity may be right at a specific time. The income from the business will generate enough revenue to pay off the loan, with interest, and then some. If you wait, the opportunity may be gone. So in this case, sooner is better.

  • Buying an income property. If you plan to buy a property that produces rental income, the sooner you buy, the more income you will get. Therefore, sooner is better.

  • Financing an education. In today's global economy, education is becoming a requirement not an option. If you have the opportunity to go back to school for say an MBA, the sooner you do it, the sooner you will enjoy the higher income. Sooner pays off in this scenario.

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