@thealexpetrov1: Wealthy people also have debt but they use it differently. When they trades time and effort for money, they immediately convert it into return-producing assets. Then they look at their assets as potential collateral to get access to debt, because know that there is an opportunity cost to divesting from those assets to use the money. If they choose to take on debt, they do it to fund a cash-flow producing business or assets that passively go up in value. They compare the cost of borrowing versus the expected return on the assets they are considering. If they think they can come out ahead then think of that debt as leverage. Most people spend their money to buy stuff, and then take on debt to buy more stuff. #finance #wealth #money

Alex Petrov

Open In TikTok:

Region: CA

Thursday 11 June 2026 16:14:11 GMT