Quote from: Alphakilo on May 09, 2024, 08:35:52 AM

Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the bad debts.

Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.

As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.

Wealthy people love debt no doubt because they see investment opportunities all the time and are always ready to borrow to invest and utilize the opportunity that they have seen.it is not bad to borrow but what is very wrong is the purpose of which you borrowed the money for or if you used the money judiciously after borrowing it. talking about wealthy people their essence of borrowing is to add more funds to them through their returns on investment and the wealthy people are always very eager to borrow and invest for the future. but the poor people on the other hands only borrow to pay another debt or they borrow to feed their family and not to invest for the future.