https://www.livemint.com/money/personal-finance/rich-dad-poor-dad-author-robert-kiyosaki-acknowledges-he-is-1-2-billion-dollar-in-debt-if-i-go-bust-the-bank-goes-bust-11704369035314.html

  • miz@lemmygrad.ml
    ·
    10 months ago

    if you owe the bank a hundred thousand dollars, you have a problem

    if you owe the bank a billion dollars, the bank has a problem

  • bleepingblorp@lemmygrad.ml
    ·
    10 months ago

    Being in debt doesn't make you poor. Loads of millionaires/billionaires are in debt. There are reasons why a millionaire/billionaire would choose debt over just paying outright.

    If the interest/capital gains of their assets is higher than loan interest rates, then paying outright would be a net loss.

    Invested assets: 10% annual gains Loan interet rate: 5% APR

    In the above case, keeping the assets invested and taking on the debt would still net gain the remaining 5%.