Rich Dad, Poor Dad was one of my favorite and first finance books that I looked at more than 20 years ago. The best thing that I found in that book was the everyday language used to explain in simple terms the difference between an asset and a liability. 

If you understand those, you can apply good debt and bad debt principles.

What is good debt? 

Good debt is for the purchase of an asset that provides an income that should go up in value over time whereas bad debt iis used to fund liabilities.  Think cars that depreciate – 

Kiyosaki would probably even say the family home because it doesn’t provide an income. You get the idea. Bad debt is Consumer Debt that is a cost and expense and isn’t related to assets that provide an income or go up. 

Now, if you’re using debt within your business with the fundamental principle of good debt versus bad debt, you’re in a good place.  You’re accumulating assets that provide you an income.  You will be building income streams through your business over time – multiple income streams. You’re going to be using a principle that is going to fuel your growth, make your business more resilient and more likely to survive tougher times.