00:00How to Become a Millionaire, Part 18.
00:03Everyone tells you debt makes people poor, but here's what the wealthy know.
00:07Bad debt buys liabilities. Smart debt buys assets.
00:11If you borrow money to buy a luxury car, that car loses value while the interest keeps growing.
00:17But if you borrow money to buy a cash-flowing rental property,
00:20or a business that earns more than the interest you're paying, the asset helps pay back the debt.
00:26Here's another strategy the top 1% use.
00:28They don't sell their investments when they need cash.
00:32Instead, they borrow against their stocks or real estate, using those assets as collateral.
00:37Their investments keep growing, they get the cash they need,
00:40and in many cases they avoid triggering capital gains taxes from selling.
00:44And that's only two of the strategies from this breakdown.
00:47The full video explains the complete debt architecture, the wealthy use to build long-term wealth,
00:53including real estate leverage, business financing, and the buy-borrow-die strategy.
00:57Watch the full video.
00:59The link is in the pinned comment before you make your next financial decision.
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