What do you spend your money on?

Are you going out with friends, buying clothes, paying rent, buying gas and putting everything else on your credit cards?

You do know you will have to pay that back right?

Ya… I know you do, but you think it’s in some distant future.


Well it’s not.  And you are crippling your future, and any chance you have to becoming financially free.

What your habits, thoughts, and routines are today… determine where you will be in 3-5 years.

So do this right now…

Make a decision right now to only use debt for good reasons.

Do you know the different between a good reason to go into debt vs. a bad one?

The answer is quite simple:

GOOD: If the reason you are going into debt is for something that will put money IN your pocket each month…then that is a good reason to go into debt.  

BAD: If the reason you are going into debt is for something that will take money OUT of your pocket each month (and not put money back in)… then that is a bad reason to go into debt.

Make sense?

Let me give you some examples:

  • Clothes – bad reason
  • Shoes-  bad reason
  • Going out with friends – bad reason
  • Marketing campaign for work- good reason (if marketing is successful you will get more money from it)
  • New cell phone- bad reason
  • Christmas presents- bad reason
  • Vacation- bad reason

There are more bad reasons to go into debt than good.  If you don’t have the cash to get, or cash to do these other things….don’t get/do them!!!!!! PERIOD.

You need to suck it up and realize you are not producing enough to do the things you want… and until you are, you need to scale back your spending habits.

Now lets move onto some harder examples:

  • Car-   BAD REASON — yep!  Does a car put money in your pocket each month ?- nope.  It cost you money
  • Personal House-  BAD REASON- yep! Does your house put money in your pocket each month?– nope.  It cost you money.
  • Investment property-   GOOD REASON.  This puts money in your pocket each month since you are a landlord.
  • Boat- BAD REASON- Costs you money each month
  • Stocks- GOOD REASON- If it is putting money in your pocket each month it is a good reason

Are you starting to understand?


Keep in mind a good reason to go into debt can turn into a bad one if the investment turns soar. That is why you need to keep an eye on your cash flow and how your investments are doing.

Now if you want to get technical you can also turn some of these bad reasons to go into debt into good reasons…

If you start a car business for example, buying a car would mean you can sell it for profit so it would be a good reason to go into debt.

If you are going to an industry conference and it happens to be in Hawaii, then your going to make new business contacts to put money in your pocket while going on vacation…

But remember-

The ONLY reason… and I repeat the ONLY REASON to go into debt is for THINGS THAT PUT MORE MONEY IN YOUR POCKET.

This is what separates the rich from the poor and middle class.

The rich do what others won’t do, to live a life that others can’t.

What would you do if you won the lottery?

SUCK IT UP FOR A FEW YEARS–  then when you have enough cash to do everything else you want to do, and your purchases (investment properties, businesses,stocks) are paying for themselves you can buy whatever you want.

Once your investments are creating enough positive cash flow to cover their expenses and then some you can use that cash to buy your other items if you choose to do so.

If you want a really good strategy…have investments for specific things.  Maybe 1 investment property is used to cover your groceries, maybe another is to cover your car expense, maybe another is to cover your mortgage payment on your personal house etc…

This is how you become financially free.

And remember this:


You will continue to be broke, poor, or middle class.

For many more in depth lessons on Finance join the Better Tomorrow Group where you will receive free a free copy of the “Rigging Your Mind For Rich” program with bonuses. 


Chris M Cordova

CFO Better Tomorrow Group

Chris is an active investor, Realtor, Broker, marketer, serial entrepreneur, and co-founder of Better Tomorrow Group. Follow Better Tomorrow Group on Instagram@bettertomorrowgroup on Twitter/Periscope @TheBTgroup and Facebook at Better Tomorrow Group.  If you would like a FREE copy of Flipping Your Thoughts On Flipping Follow this LINK.