Build and Destroy at the Same Time.
Everyone says, “Pay off your debt first.”
I disagree. Contradiction can coexist.
Rule 1: Build and Destroy at the Same Time
Yes, interest is a waste of money — but if your expenses are low enough that the interest isn’t catastrophic, why not do both?
By the time most people finish paying off credit cards, car loans, or student loans, years have passed. They’re debt-free, but broke — because nothing was compounding in the background.
Sure, you’ll have a clean slate and maybe a small stack of cash ready to invest — but you’re starting from zero. And starting from zero means it’ll take years for compounding to finally start working in your favor.
That’s a loss disguised as discipline.
Even when I carry debt, I never stop investing. That’s my rule.
Always be building.
Always be increasing net worth.
My spending categories stay limited, so I treat interest as just another expense — one that doesn’t touch my bottom line. It’s accounted for, contained, and irrelevant to my long-term trajectory.
Rule 2: Beat Your Interest Rate
I aim to find investments that yield higher returns than the debt I’m carrying. If my credit-card interest is 12% and my portfolio averages 30%, I’m still net positive. It’s not magic — it’s math.
Of course, ideally you want your returns to respectfully exceed your debt interest rates — otherwise, the strategy becomes less viable. The goal is to keep the needle moving forward, not just moving sideways.
Rule 3: Mirror Debt with Cash
Here’s my favorite twist: I like to hold the same amount of cash as the debt I owe. That means I could pay it off at any time, but I choose not to.
That’s control — not risk. My cash stays working while my debt quietly declines in real value over time.
Rule 4: Never Sacrifice Net Worth for a Payment Plan
You can’t get time back. Some people spend their 20s and 30s chasing the badge of “debt-free” while their money sleeps. Even if it takes five years to pay everything off, that’s five years of compounding lost.
I’ve carried the debt-free badge many times. What’s more meaningful to me? Carrying a constant positive net-worth badge.
I’d rather build wealth and erase debt simultaneously — one destroys the past; the other creates the future.
Freedom isn’t necessarily about being debt-free.
It’s about net worth and passive income.
Debt only kills when you’re missing both.
My Philosophy on Focus and Multiplicity
My whole life philosophy is to pursue multiple things at once. Focus ≠ one goal.
Does it take more effort? Absolutely. But you have to live by your values — not by what everyone preaches.
What did I want? A positive net worth and a compounding machine. You don’t build that by only servicing debt. You can wait, sure — but compounding starts later.
It’s no different than fitness. How do you build a better body? You work out and you eat clean. A perfect example of executing two things at once.
Using this approach, I became debt-free for the first time in three years after graduating college. After that, I only carried debt when paying it off immediately would’ve slowed my compounding — and I kept the cash to kill it any day.
A Note on Risk
This approach only works if you have strong discipline, steady income, and a low-interest debt load. If your debt carries high interest or your spending habits are unstable, pay it off first. The power is in control, not chaos.
Even the Obamas didn’t finish paying off their student loans until their 40s — proof that debt doesn’t have to delay growth. It just has to be managed intelligently.
Bridge to Part 2: The Psychology of Desire
Money is just one mirror of control. How we manage it often reflects how we handle everything else — craving, risk, emotion, even love.
Some people need to remove temptation to feel safe.
Others learn to stay near it and still stay free.
The same psychology plays out beyond money — in desire itself.
Read Part 2: The Psychology of Desire: Why Some People Need to Experience — and Others Just Need the Option
Disclaimer: This content is for informational and educational purposes only. It is not financial, investment, or professional advice. Always consider your personal circumstances before making financial decisions.