As you save money, opportunities to utilize both “good debt” and “bad debt” will arise. Good debt gains you exposure to attractive assets and allows you to participate in their growth at an affordable cost. Bad debt, such as credit card debt, can be extremely costly as you’re often paying high compound interest rates on depreciating goods. We always want to ensure that compound interest is working for us and not against us. See the attached link for a video explaining the differences between good and bad debt.