When you have a sufficient amount of wealth,1 having some of the right kind of debt—the smart kind of debt, the well-thought-through kind of debt—in your personal financial ecosystem is not only a good idea, in many cases, it’s a great idea. The right kind of debt—what we’ve also throughout called Strategic Debt—gives you and your family more liquidity, more flexibility, more leverage, and more of an ability to survive whatever might happen in the future, including natural disasters, a death in the family, a career loss, and so on. Put differently, the right kind of debt can be absolutely invaluable to you and your family, and this book has aimed to explain at least the beginnings of how and why this is so, and how you can best take advantage of Strategic Debt.
But does taking on debt when you don’t have to ever really make sense? Absolutely! (In fact, as we’ll show later in this chapter, sometimes taking on more debt is the only thing that makes sense.) Here’s the real key: This book is not about buying what you cannot afford, or living a lifestyle (including during retirement or divorce) that is beyond your means. Instead, this book is really about three things: