We are so focused on the disadvantages of debt that we forget to see the good side of it. That is why so many people are not debt free

Borrowing money is not a crime, but being unable to pay back is a crime.

Robert Kiyosaki: “The rich uses fake money

That’s true! And if you don’t know what fake money means, it means borrowed money or what can also be called other people’s money.

Banks are the number one largest institution that uses fake money.

They use other people’s money to Trade in the Forex market and other markets, make huge profits from it and give peanuts as profits to the real owners.

They also use fake money to generate more money by lending it to others and many countless things.

I am not telling you to stop putting your money in the bank, because that won’t be wise. I am just using the Bank as an example to tell you the good side of debt.

It is true that the rich are the most debated set of persons on earth. —Not all of them but most of them.

While the poor who are the hardworking class always try by all means not to be indebted to anyone or any institution but in the end, they are always in debt.

I would say what distinguishes between the money the poor borrow and the money the rich borrow is preparation.

The rich before borrowing money had already prioritized what the money will be used for, how the debt will be paid, what percentage will be kept in case of uncertainties of not having much profit to settle the next month’s debt, and so on. —That is the smartest way to pay off debt even before applying for it.

The poor think he has his preparation prioritized, but actually, he got nothing prioritized.

When a poor man borrows money, he is quick to use the money mostly on his wants, not his needs.

“Wants:  They are things not necessary. That is they are desires or wish. 

Needs: They are necessities, a must require for living”

That is why it is required that anytime one borrows money, he shouldn’t jump into using it immediately, he should take some time to reassess his priorities on what the money is meant for, just to be sure he is not spending more on wants rather than needs.

In this article, I will be taking you through some things you should never use loans for if you want to be Debt Free.

One thing is common to those who are not Debt Free; “they lack Peace

Someone who actually lacks peace has a low chance of living longer. So read these  5 things you should never do with borrowed money if you intend to erase your debt fast

  1. Purchasing Liabilities
  2. To settle debts
  3. Events
  4. To give to someone
  5. Spending half or more than half on wants rather than needs.

The reason why people are poor or remain poor even though they are applying this secret of rich people called “Debt”, is because those are what they do with their loans.

The reason why the rich keep getting richer is that they don’t do any of these five(5) things.

1. Purchasing Liabilities

This is one of the most common things people use their borrowed money for.

The reason they do it is because of the wrong information they’ve received and sealed in their mind.

Liabilities are things that take money from you without bringing money back to you. That is, they are part of the sources of expenses”

Examples of liabilities are; cars, private jets, personal generators, personal houses, and so on. Anything that you purchase and is not generating income is a liability.

Many people might say a personal house is not a liability because it can be resold. They have this misconception because of the wrong information they have had in the past.

The truth is, if you purchase a house on a mortgage, apart from the monthly Mortgage fee you will have to pay the Bank, the house will also generate bills.

With all these bills coming out from your new home, nothing is going into your pocket as profit. That is what makes it a liability.

But if the house was bought to be resold immediately or given out for rent, it is no longer a liability instead it is an asset.

So when you use borrowed money to purchase a personal house, be sure to have a business that generates two times the monthly mortgage fee as profit.

If not, you will lose both the house and your business.

And as an employee, don’t rush into buying a personal house on a mortgage because you don’t know how secure your job is.

The boss could wake up on the wrong side of the bed the next morning and decide to make changes at the office.

2. To settle Debt

This is actually the most folly thing anyone can use borrowed money for. I have been opportune to see someone who did this.

The real reason why people do this is that the person they are owing needs his money back urgently and he is mounting pressure on the borrower.

For the borrower to have peace he simply looks for someone else to borrow from to pay the other person.

Sometimes the new person they are owing might be kinder or even more demanding in terms of interest rate and payment date.

But just because the person involved doesn’t have much choice, he decides to settle with the fire.

“From the Fry pan to the fire.”

In either case, the debt still remains.

3. For Events

This is also popular in the world. Matter of fact I heard of a man who got married, killed by Hypertension a few days after his wedding in Nigeria.

What happened was that; he borrowed money to do a wedding. And in Africa precisely Nigeria, two weddings are demanded; the Traditional Wedding and the White Wedding.

After the wedding, the owner of the money came asking for his money, but the newly married man couldn’t pay.

With the stress of thinking about how to pay his debt and also support his new home, he slept one night and never woke up. Debt Paid!

No matter the pressure that is mounted on you to borrow money for an event never take a second thought of it, because if you do, I tell you, you will eventually borrow the money to sponsor the event and end up in regret.

“What you hear and see become your thoughts, your thoughts become your words, your words become your actions, your actions become your habits, your habits become your character, your character becomes your destiny.”

4. To give to someone

Some persons out of kind heart and trust have fallen into this category and the end result wasn’t that good.

While some other people out of a show of pride have fallen into this category.

In whatever type of person category you fall into, never borrow money to give to someone because there is a high chance you will be disappointed.

So, no matter how generous or prideful you are, the least you should do is to give the little you have at that moment and if you have nothing with you, say; “No in a polite manner”.

5. Spending half or more than half on wants rather than needs.

Recap on the definition of wants and needs

Wants: Things that are not necessary

Needs: Things that are necessary”

When you borrow, for instance, to stock your business, don’t spend half or more than half of it on things other than the original purpose for which you borrowed the money.

If you do, thinking the half you’ve spent on the business will be able to generate enough profit to cover up the initial money borrowed, 80% chance you will be disappointed.

No matter the pressure your Wants are pressuring you to spend that money on them, never spend more than 10% of the loan on your Wants.

The remaining 90% of the borrowed money should be spent strictly on the Need (the initial purpose for borrowing the money)

Another light is; Someone who wants to start a business should never use his borrowed money/loans for the beautification of his business space.

I know when you want to start a business, the office/business space will definitely require money for fittings, furniture, and other none money generating assets.

The least you can do, because office maintenance is very necessary if you want your business to have a good public image, is to include the cost of maintenance into the loan.

So when the loan comes, it doesn’t affect your desired stocks of goods or whatever the business is intended to offer.

One thing is certain in Business, “Garbage in Garbage out.” You don’t expect a business that has a stock of goods worth $10,000 with a total estimated profit of $5,000 to give you $50,000 every month to pay your debt.

It doesn’t work that way, if you really want $50,000 every month, you must have More Stock that can give you that profit or sales every month.


When you avoid the prementioned  Five(5) things with borrowed money, you can pay off debt with low income.

“What you hear and see become your thoughts, your thoughts become your words, your words become your actions, your actions become your habits, your habits become your character, your character becomes your destiny.”

I Like to know your thoughts/feedback on this via the Comments section

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