Kimberly Palmer is the author of Generation Earn: The Young Professional’s Guide to Spending, Investing, and Giving Back, which was published by Ten Speed Press this week. The following post has been adapted from the book. She’s also the author of the Alpha Consumer blog at USNews.com, where she’ll be hosting book giveaways all week.
Shortly after meeting my husband, he tried to convince me that debt was a good thing. His student loans, after all, were not only funding his tuition but also many of our first dates. Using something called the “income smoothing theory,” he argued that it was better to borrow now, when we had little money, so we could live better than we otherwise would, and then pay it back later, when we (hopefully) had steady incomes. (Of course, to us at the time, living well meant being able to buy cheap Thai food and beer.)
While his theory falls apart if it’s taken to extremes, for the most part it makes sense. Debt can be a very good thing, as long as you use it wisely. Here are five ways you can use debt to improve your life.
For those of you expecting another installment of Scam Week, I thought we’d take a little break mid-week. I’ve been friends with Kim for a while and with her book coming out, I thought having a guest post by her would be a nice change of pace. I hope you enjoy it!
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