Why Rich People LOVE Debt (This Will Open Your Eyes)

Why Rich People LOVE Debt (This Will Open Your Eyes)

Rich people absolutely love debt. While many poor people are doing their best to pay off their debt as soon as possible, the rich are finding ways to increase their debt load. Poor people struggle to grasp this concept. Why would anyone want debt and the interest that comes along with it? Rich people use debt in different ways. See why many of the most successful people prefer being neck deep in debt having mortgages, car loans and many other forms of debt instead of living a debt free lifestyle with no monthly payments. This will open your eyes.

[luvyarora]

Even good debt has certain amount of risk associated. The question becomes how much risk a person is willing to take.

[Financial-Education]

Using someone else's money ( debt) to increase your own wealth is a skill the rich have mastered.

[damnthegrifters]

The downside is... you have to spot opportunities AND not be a worry wart.

[mark]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[Nolaman]

💯 agree, I say this all the time, I use good debt to make cash flow while minimizing bad debt. Good debt is a great tool if used properly.

[brucestiles]

One caution about deducting interest. Business interest, including for a rental property, is deducted from business income (and then other income). Mortgage interest is deducted only if you itemize deductions. In 2023, the standard deduction is $12, 950 for a Single filer, $20, 800 for a Head of Household filer, and $27, 700 for a couple Married Filing Jointly. Depending on your individual circumstances, you could have mortgage interest that you couldn't deduct because your total itemized deductions are less than the standard deduction.

[themusic]

Rich people love debt because they’re rich….after a certain net worth it’s really not that risky to borrow money for future expenses that aren’t going to make you any money because the cash flow from their investment portfolio can likely just pay it all off without having to actually use any of their own assets or invested money to purchase it. It’s a luxury to be at a point where it’s more advantageous to pay interest in borrowing money rather than touching your wealth….and the average person is no where close to that. Which means they shouldn’t love debt, it will not make them rich in the first place.

[elanleon]

In light of the impending recession and the fact that inflation is still far higher than the Fed’s target, few prominent market analysts have expressed their views on how terrible they believe the next downturn will be. I just need advice on what investments to make as l'm attempting to create a portfolio for my 15 year old son that will worth at least $500k before he turns 20

[chesspwn]

Debt is a chainsaw, proper and skilled use you can cut a lot of trees really fast. Reckless or ignorant use is dangerous and can kill you. An ax will cut trees right fine for you even if not as fast or easy.

[tommyjames]

Investment and spending are two different things. Investments that provide passive income, such as rental properties is not debt, you can borrow your own money for 1 percent above prime and never spend your money you use your money. You do not pay taxes on borrowed money. My Dad always said your only worth what you prefer being debt free, I'm old and just don't think about money anymore, all of my needs are met and I haven't balanced a checkbook for more than 30 years.

[dank]

I’ll have to disagree. Borrowing money is the best way to go broke when real estate prices fall.

[chemquests]

Leverage cuts both ways, multiplying gains and losses.

[Sorutirei]

What the poor people disagreed and complained on debts was at most they had been either oblivious to personal debt management, and thinking the rich people must have a ton of degrees, or trust experts to do so with calculations, which is not affordable to their own situation on either such degrees or hiring those gurus. Resulted, they got bad debts from the scratch, either by their cost of livings or fradulent schemes promising of windfalls of riches

[ainlLeek]

I've noticed a lot more restaurants closing than opening in my area, and real estate market is a huge bubble at this point. You think you'd do better? Not me. I'll stay away from that. It feels like the deck is stacked against anyone who dares enter.

Ramsey's advice works because most people aren't sophisticated enough to navigate the risk. I'm one of those that can't. Ramsey's advice is completely sustainable even for everyone. Isn't everyone looking for sustainable solutions for everything?

Now get off my completely paid-for lawn.

[appollo]

I hate to hear people say, it will take a long time before you get rich by using this method compared to this method. Most people considered 50 years old to be a long time but the average millionaire is 57 what do you mean a long time. It is not like millionaires are getting rich on average in theirs early to late 20s. It also not like you're going to be extremely old is you strive for a long term way of saving. I just dont get this concept of rushing something and hoping for the best by getting into debt. Young millionaires that made it on (no inheritance or small loan of a million dollars lol)their own are very rare, so we must make a plan no matter what.

[tenzinlama]

Dave Ramsey is looking for you lol 😂😂😂

[toddaustin]

You've been listening to too much Robert Kiyosaki.

Please remind me how many times he's had to file for bankruptcy. 😮

[mhodge]

Everybody have their own definition of rich

[damnthegrifters]

Other People's Money.... OPM. Great movie.

[castlerc]

Bought 9 properties in 2002-3. 6.5% mortgage. Fast forward to today. Renters paid for the mortgages for 20years. I decided to pay them off with money from the sale of my primary house. Cash flow 10k. Zero debt. It’s a force savings account for people like myself that are bad at saving.