Why Rich People Borrow Money They Already Have

Описание: Most people are taught that debt is dangerous and cash is safe, yet billionaires and wealthy investors do the exact opposite by using bank loans even when they already have millions available, and this video explains why rich people use loans differently and how debt becomes a powerful wealth-building tool instead of a financial burden when used strategically; through simple examples and real numbers, the video breaks down how spending your own cash carries an invisible cost by stopping long-term compounding, while borrowing allows money to stay invested and grow in multiple places at once, creating leverage and arbitrage that most people never learn about; it explains how wealthy individuals borrow at low interest rates, often reduce that cost further through tax deductions, and use asset-backed loans to avoid selling investments and triggering capital gains taxes, while their assets continue compounding over time; the video also covers how banks favor rich borrowers with better terms due to low risk and high collateral, why leverage can turn small amounts of capital into significantly larger returns in business and real estate, and why this same leverage becomes dangerous without proper education; most importantly, it reveals why these concepts are rarely taught in schools, how fear of debt keeps people stuck trading time for money, and how understanding the rules of the financial system allows a small group to build generational wealth while others struggle despite working hard, making this video essential viewing for anyone who wants to understand how money actually works at higher levels of finance and why billionaires use loans as a strategic advantage rather than a liability.

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