ANY DEBT, “GOOD DEBT,” OR “BAD DEBT,” LONG-TERM DEBT OR SHORT-TERM DEBT, SHOULD BE USED TO PURCHASE AN ASSET OR SERVICE WHICH WILL, IN TURN, GENERATE REVENUE OR AN INCOME THAT WILL BE USED TO PAY OFF THAT DEBT, PAY ASSOCIATED OPERATING EXPENSES, AND GENERATE A REVENUE STREAM.

Everything we purchase can be construed as helping us to make more revenue and income. For instance, buying lunch gives us energy to go back and do 4 more hours of work. However, should lunch be paid for with debt? If the answer is, “No,” then pay cash for lunch.

If a car is primarily for personal use, then pay for it with cash (YES, I know, sounds impossible). If the car is for business use, then work with a CPA to purchase it /purchase its use the best way possible, in order for its use to pay for itself, plus extra.

What we will find is that the future value of money (time value of money), is much more than we would have predicted. A dollar that we spend today (or a dollar not saved and not invested today), causes us to miss out on accumulating many, many, many dollars, years from now.

Charles Tadros, M.D.

April 29, 2022

Saint Louis, Missouri