Good Debt vs Bad Debt

I’ve been reading Bo Sanchez’ 8 Secrets of the Truly Rich. I came across his concept of good debt vs bad debt. It says in the book that good debt is when that debt of yours served as a means for money to get into your pocket: think investments. Bad debt happens when it takes money out of your pocket, and just ends like that – a deduction, decrease in your resource jar.


I believe in his claim that yeah, most Filipinos, even the working-educated class are not money-wise in terms of making their wealth resource grow. That prompted me to ask my dad if he’s into stock/s buying, and mutual funds. He suggested that it’ll be a good idea that I buy stocks from San Miguel Corporation, or anyone of those long-standing, stable companies we have in the country. Yes, stocks’ value fluctuates every so often, but for large stable companies, the harm isn’t as hurtful. Fluctuations come in insignificant values. So I’ve decided to bring part of my savings for this endeavor, and maybe I’d be taking a look at mutual fund companies via


Now, on the more profound sense we all have our acquired good debt and bad debt in life. What I consider as good debt are the investments made to heal people, and bring relationships to more loving and intimate levels. Time wasted for our families, communities, and those people whether they are our friends or simply plain people in need – is good debt. It’s synonymous to cash spent on your child’s education in order to nourish mind and social well-being. This particular time investment spent for people who need it the most yield an ROI of lovelier relationships, and most importantly a sense of emotional balance for the person investing his/her time. Being in connection with these people brings out that sense of fulfillment because you achieved a purpose in others’ lives.


What then is bad debt? I guess it differs from person to person. How would you consider the moments, minutes, hours, you wasted holding off your tongue when you’re supposed to encourage, affirm, or say sorry – which proves to be one of the most difficult investments to make in a relationship. This for me is bad debt. Every time an opportunity to love was not seized, when you had to resort to silence or apathy, when it is both a loss for both parties, it is bad debt. And worst, the consequences of paying could be far more difficult.


It takes wisdom to know which kind of debt benefits your life, and personal will to choose the right investment to make.

 So have you been having bad debts lately?



Filed under roaming and ranting

5 responses to “Good Debt vs Bad Debt

  1. “Every time an opportunity to love was not seized, when you had to resort to silence or apathy, when it is both a loss for both parties, it is bad debt. ”

    If this is the real definition of bad debt, I like it. 😛

    I haven’t taken major risks lately maybe because I don’t know whether it would lead me to happiness or sadness in the end 😀 Nevertheless, I could say that I am a wise investor at most times. No bad debts yet as of the moment. Hehe.

  2. haay, yezz. in bad debt na ata ako. addictus na ko magswipe ng credit card. 😦 much worse, addictus na ko sa harry potter that i sometimes put off keeping in touch with friends and reading friends’ blogs. haha! hope you’re doing well! 🙂

  3. haha i’ve read that book. pero matagal na ko may mutual fund dahil sa parents kong “financially in-the-know.” i liked how you got inspired to blog about it 🙂 try the 70-30 system. 7o% of your income for your usage. 30% for your savings (10% tithes). but i guess u read about that 🙂

  4. Hi Marian!

    Yeah, that’s a good note. I wish I’ll have the discipline to do that hehe! Btw, welcome to DWH! 🙂

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