I paid off all my credit card debts back when I was about 24 years old. Then I tackled and eliminated all my business related loans and debts by the age of 25. Afterwards, I purchased properties which led to mortgage loan debts. A decade later at age 36, I decided to pay off all mortgage debts with the idea of starting with a clean slate as I transition my life into F.I.R.E.

Today I don’t owe anyone money and my liabilities portion of my balance sheet sits at zero.

But am I really debt free?

I can’t say I really am.

I am not 100% debt free

I own debt and will likely always be exposed to the risks of debt for the rest of my life. Why? Because I own stocks.

I own companies with debt. That debt on their balance sheet can negatively impact share price significantly under the right set of circumstances. So long as I hold such assets, I am married to the risks.

When I buy stocks, I buy them with the idea of really owning a part of that company. I think back at how it felt to really own the responsibilities of owning a business from my past and apply the same to stocks. So it’s natural for me to think that I own the debt on the books of the companies.

I think it’s important to understand clearly the risks of owning companies with significant amounts of debt and your personal financial situation in aggregate. Sometimes you may find yourself more levered than you would have previously thought when accounting for the debts of companies on top of your other debts on your personal accounts.

Just some thoughts that cross my mind from time to time.

The truth is, I can’t say I’m truly 100% debt free.