Borrow money only for items that will appreciate in value.

Like what? Few items fall into this category. Over a long period of time, real estate generally appreciates, but most of the things which you want to borrow money to enjoy, such as vacations, trips, TV's, clothes, CD players and so fourth, do not fall into this category.

What about borrowing money for a car? Having a car is usually an economic necessity to provide transportation. But the kind that you buy determines whether it is a necessary investment which allows you to hold down a job, thus creating income, or luxury with bells and whistles you don't need. Be on guard against the line the car salesman gives you. Get some advice and buy what you need but no more. The bells and whistles can wait.