Great advice @jaff8 Finances are soo improtant but it seems like not too many people are ready to talk about them. I agree 100% that while some debt can be good, it is best to think that Debt should be avoided. I see two kinds of debt:

• Business Debt - This is debt you use to grow an asset or a business. I borrowed a small amount of money to buy a piece of land that I was farming. I already had an income stream and I made sure the monthly payment (around $100 per month) and the loan terms (5 years at 4.5%) were doable for me, and so I went for it. The business pays the loan, but even in a pinch i have some savings to pay a few months if i fall behind. I also borrowed from a family friend, so even if i miss a payment, he wont foreclose on me like a bank would. Thus, debt is better obtained through informal channels as opposed to banks, whenever possible.
• Consumer Debt: Consumer debt is debt we take on to improve our lifestyle. This debt is very dangerous. If what you are going to buy with borrowed money will not make you more money in the future, it is probably a bad idea. Credit card debt is very dangerous.

Student loans I would consider to fall under the first type of debt, as hopefully you will earn more once you get a degree (but even then avoiding student debt can be a very smart thing to do).

I also strongly agree with diversification of income and balancing spending with investing. Very good advice. Thanks for the post!