Debt or No debt

You should never buy luxury and/or depreciating things on loan. It can set back your financial freedom dream a few years back. If you want to take a loan to set up a business, you must first calculate risk-adjusted future cash flows and potential after-tax profits of that business. You should take a loan only if these numbers make sense. You can also buy things that are likely to appreciate with time.

You should pay off all your bad debts before investing in stocks, businesses, bonds, and real estate. If you are contributing to a retirement plan, you should keep investing in it.