Nicole Lapin

Like what other kinds of debt are you holding?

Do you have student loans?

Do you have credit card interest rate?

You know, what are your goals?

And all of those questions should be looked at together in a holistic picture.

And so not all debt is created equal.

So I used to be so scared of any kind of debt.

I'm first generation American, you know, grew up in an immigrant household.

Like you buy something if you have the literal cash to pay for it.

And that was the end, like period, end of story.

So rich people have debt, but they call it leverage.

It's the same concept, but they use it to make more money or lower their cost of capital, which is essentially taking the difference between the percentage that you're borrowing money at and the percentage that you would make money at.

So if you're borrowing at 3%, but you can make 10%, then you're pocketing that spread or 7%, for instance.

And so, you know, good debt and bad debt, two different things.

So good debt for your beautiful, beautiful brain, you know, in theory, that asset is going to earn more than the interest rate, right?

Yes.

So that's good debt.

Or you're using that debt to buy assets that will appreciate.

So a home.

It's sort of, you know—