About the Companion Website
This book includes a companion website, which can be found at www.wiley.com/go/thevalueofdebt. The site contains a debt calculator that is organized similar to the case studies in Chapter 5 and Appendix D.
Readers naturally try to apply the themes of this book to their personal balance sheet—that’s the goal! Using this calculator you can input a rough sketch of your current assets and liabilities. The calculator will give you some feedback on your current amount of debt (above or below the optimal range). It will then enable you to run a side-by-side comparison with another balance sheet.
The tool is designed to encourage thought and discussion; it is not designed to deliver individual solutions. Incorrect application of the ideas in this book and website can have serious consequences. Further, you may very well have unique risks or costs of financial distress in your life that lowers your optimal debt ratio range. You may be victim of the behavioral finance issues we discussed, including an inability to handle the responsibility that comes with debt and/or be unwilling to understand the central premise of this book: It is not about buying things you cannot afford; it is about better ways to finance and pay for the things that you can afford.
There are many, many inputs in determining your individual optimal debt ratio, and that number may very well change throughout your life. You should therefore use the calculator as a starting place to trigger meaningful ...