Two people borrow money.
One invests in a rental property, generating passive income and building equity.
The other buys a brand-new car that loses value the moment it’s driven off the lot.
Years later, the first person has a valuable asset and increased cash flow. The second is still making payments on a depreciating asset.
The difference? One used debt as a tool for wealth, the other as a shortcut to consumption.
The way you view debt can determine your financial destiny. Many see it as something to be avoided at all costs. The wealthy, however, understand its potential as a tool for leverage. They strategically acquire debt to invest in income-generating assets, creating a powerful engine for wealth creation. This isn’t about reckless borrowing; it’s about calculated risk and understanding the difference between good debt and bad debt.
Debt can be your greatest tool – if you know how to use it.