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It’s not pedantry. There may be some circumstances where strategic use of debt contributes to making you rich, but leverage is not a necessary condition for bui
by hyko 6y ago
It’s not pedantry. There may be some circumstances where strategic use of debt contributes to making you rich, but leverage is not a necessary condition for building wealth. Stating that it is gives people the impression that debt instruments are the road to riches, when in fact they are often the exact opposite.
- lotsofpulp 6y agoDebt to purchase productive and appreciating assets is the most common way to get rich that I have seen. I don’t really know anyone who got rich (as in you don’t have to worry about working) with their labor. It’s buying something with 10% down that appreciates 2-3x+ and then taking those gains and investing it in something else that appreciates and so on and so forth that got the people I know rich. For real estate in the US, you also get to take advantage of the 1031 tax exchange and basically build your wealth tax free.