What if I don't feel comfortable with debt?

While the concept of debt may seem disturbing, the reality is we live with debt in one form or another. Few people attain true financial independence without some form of leveraging.

In fact, most Australians are actually more comfortable with debt than they realize, through the mortgage on their own home, or perhaps the loan on their motor vehicle. Many of us are in "debt" to the taxman by virtue of the fact that we earn an income.

There are two key principles that will ensure security when it comes to borrowing:

• Only borrow to purchase appreciating assets
• Make sure your debt is manageable and is working for you