In many personal finance circles, the word debt has just as many negative connotations as the word carb does to dieters. The usual reaction is one of stark horror, condescension or even downright hatred. There are actually quite a few similarities between the two, both good and bad.
1. They both go straight for the waistline. While carbs attack your tummy, debt prefers to go for the wallet, but in the end, they’re both headed in the same direction.
2. They both can be addicting. Ever see someone trying to give up carbs for a day? They look remarkably like someone trying to stop using credit cards.
3. They both make you feel guilty. Carbs can inflict tremendous guilt, usually right after you cave and devour an entire cake. People in debt have remarkably similar feelings of guilt, especially after a spending spree.
4. They both damage your future outlook. Eat too many bad carbs for too long, and you may end up with lasting health problems. Spend too much for too long and amass a bunch of bad debt and you’ll be in a similar position financially.
5. The damage they cause can take a lot of money to fix. The diet industry is worth billions and strangely enough, so is the debt recovery industry. Too much of either can cause quite a drain on your finances no matter how you look at it.
But, the comparisons aren’t all bad… The difference comes from understanding how good carbs and good debt can actually benefit you.
6. They both provide fuel. Good carbs provide your body with the fuel it needs to function. Likewise, good debt provides your finances with the fuel to grow.
7. They both make you stronger. Good carbs contain the proper balance of nutrients that your muscles need for strength. Good debt provides you with the strength to keep growing your finances and amass more wealth.
8. They both can decrease your blood pressure. Eating the proper balance of good carbs has a positive effect on your entire body, including your blood pressure. Likewise, good debt that brings in more income for you will help you avoid the stress of worrying about money.
9. They both keep you running smoothly. Good carbs keep your bodily functions running smoothly and likewise, having good debt that is working for you by helping you create more than one stream of income can keep your finances running pretty smoothly too.
10. They can both taste pretty sweet. Let’s face, some carbs just taste good – but so does the success you can taste when you’ve managed to leverage good debt into your own little empire.
As with anything in this world, too many bad carbs and too much bad debt can be harmful. However, when used properly good carbs and good debt can actually end up being beneficial to you in many different ways. The key is finding the right balance, and understanding the difference between both good and bad carbs, as well as good and bad debt.
This is a guest post from the author of Rich Credit Debt Loan.
photo credit: photo bucket.