How to Use Debt to Build Wealth | Leverage Explained

In finance, leverage (or gearing) is about using debt (other people's money) rather than equity (your own money) for the purchase of an asset. It allows businesses to use assets they wouldn't normally be able to afford.

In this video I'll explain how to tell the difference between good debt and bad debt according to Robert Kiyosaki. Because sometimes it's worth going into debt and other times it can leave you in a financial mess.

00:00 What is Debt
01:00 Good Debt vs. Bad Debt
03:42 How to Use Debt to Grow a Business
07:12 Why Debt Always Carries Risks

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#Finance

[sarimmehtabhasan]

"working with other people's money, improved your ROE" Been struggling to understand Financial Leverage for weeks and this video did it in minutes.. Thanks a million, will definitely look at your other videos.

[thedon]

As always, great job! You rock!! Thank you so much, for all your tutorials!

[TylerStanczak]

Love these financial videos! Really helpful information Leila :)

[Better_callMe]

This video explained the concept in such an easier way than most other videos on youtube! Thank you!

[nadeemmalik]

You're amazing Leila. A really great tutorial on debt with a well explained example.

[adi]

I am glad that I came across your youtube channel! Your simplicity in explaining frightening facts for others makes my mind at rest and understanding.

[MarwanAShareef]

Wonderful, you make it easy and clear... Thanks for your hard work

[tarekalsherif]

Simple and clear as always expect from you, thank you Leila

[AnandTN]

You are awesome as always, Leila. It helps me to understand business finances better. Thanks and Cheers!

[jasonipfatsiong]

Many thanks, appreciated. And best wishes 2021

[newcomersf]

Very good explanation on leverage, its up and downsides. Great for people without financial background, robust explanation.

[HusseinKorish]

For me as an accountant ....i really preciate and like this video ... Thanks Leila

[SalimaBadalova]

Thank you so much! Could you please make more finance related videos? I love how you present everything in the simplest way

[oscarcohn]

Excellent video! A very easy way to understand this subject. Congratularnos, keep doing this.

[pardeeparya]

Thanks madam, what a great explanation.

[aichujohnson]

Thank you for explaining this in simple and clear terms.

[sachinrv]

Nutshell, impulsive purchases made on borrowed money will put a big dent in your income / assets, resulting into lesser net worth in the long term. Thanks for this lovely video :) Cheers :)

[dmotaroki]

That was a simple and super helpful explanation.

[irajabaly]

this is a clearly explained and very useful video for business Thank you so much

[wayneedmondson]

Hi Leila. Great lesson! Leverage can be friend or foe, depending on skill, timing and luck. Good to keep in mind. Thanks and Thumbs up!!