Part 2/11:
At the first level, individuals operate on a cash-only basis, meaning they owe nothing to creditors. While this grants a certain level of financial independence, it severely restricts one’s spending power and ability to invest or build credit. Those living completely debt-free may either be frugal savers or individuals without stable housing. Though free from the burdens of debt, the limitations of cash-only living can hinder opportunities for growth due to a lack of leverage.