“When it comes to reducing risk, **debt can be used to provide additional liquidity, smooth cash flow, or decrease uncertainty**. For example, someone may choose not to pay off their mortgage early so that they can have more cash on hand in the event of an emergency. In this case, **the optionality provided by holding debt can be worth more than the cost to hold it**.” --- **Tags** -- [[quotes]], [[personal-finance]], [[financial-liquidity]], [[good-debt]], [[optionality-trap]], [[resilience]] **Source** -- [[20250201125729 - B - Just Keep Buying]]