Entrepreneur debt is categorically different from W2 debt — and conflating business and personal debt is one of the most common financial mistakes business owners make. Here’s the framework for managing both.
Your debt-to-income ratio tells lenders how risky you are. For FIRE seekers, it tells you something more important: whether your debt load is compatible with early retirement. Here’s how to calculate it and what to do with the number.
Not all debt destroys wealth — some debt builds it. Here’s a framework for distinguishing good debt from bad debt at each stage of the FIRE journey, with real examples from each category.
Compare your debt interest rate to investment returns. Pay off debt >8% first, invest if <4%. The decision framework that works for your situation.
Not all debt is equal, and “how much debt is too much” depends entirely on what stage of life you’re in. These age-based debt benchmarks help you figure out whether you’re in a dangerous position or on a smart path.
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