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In this video, we break down why the rich use debt completely differently than most people assume. Everyone says stay away from debt, but the rich use it to buy assets that pay them, not liabilities that drain them.

We cover the rental property example: put 20% down, the bank funds the other 80%, and your tenant pays the mortgage, covers expenses, and may leave you with positive cash flow while the property grows in value. Poor debt takes money out of your pocket. Smart, well-managed debt helps you acquire income-producing assets.

This is only 1 of the 15 leverage strategies the wealthy use, covered in this series.

This is Part 10 of The Money Formula's Millionaire Behaviors series — subscribe for daily videos on money mindset, wealth building, and financial freedom.

This content is for educational purposes only and is not financial advice.

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00:00How to become a millionaire. Part 10. Everyone tells you to stay away from debt. The rich do
00:06the opposite. They don't use debt to buy liabilities. They use debt to buy assets that
00:12can pay them every month. Imagine putting 20% down on a rental property. The bank funds the
00:18other 80%. Then your tenant pays the mortgage, covers the expenses, and may even leave you with
00:25positive cash flow. While you're living your life, someone else is paying off your loan,
00:29and your property may increase in value over time. That's the difference. Poor debt takes money
00:35out of your pocket. Smart, well-managed debt helps you acquire income-producing assets.
00:41But this is only one of the 15 leverage strategies the wealthy use. The most powerful strategy lets
00:47them access millions without selling their investments, and almost nobody knows how it
00:52works. Watch the full video now. The link is in the pinned comment below. Don't miss the other 14
00:58strategies that could completely change how you think about money.
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