Borrowing money can be a smart decision, a stupid decision, or a necessary decision.
When is it necessary to borrow money? If your family is starving, it is a very good idea to borrow money. There are emergencies in life when having a positive cashflow is a low priority: ensure your own health and well-being and of those you love.
When is it a stupid decision to borrow money? If you're itching to buy a new plasma TV that is out of your price range or are addicted to impulse shopping at the mall, borrowing money is pretty stupid. The worse thing than having no money is owing money.
When is it a smart decision to borrow money? If you come up with a business opportunity and the profit from the business pays of the loan, you are being smart.
Knowing when to borrow money is an important tool in your financial arsenal.