@richmanparadise: One of the biggest differences between the wealthy and everyone else is how they use their assets. Scott Galloway explains the strategy often described as “buy, borrow, die.” Instead of selling an investment that has increased in value and triggering capital gains taxes, wealthy investors can borrow against that asset and use the loan as a source of cash. For example, if someone buys 20,000, selling it could create a taxable capital gain. But if they borrow $5,000 against the investment instead, they can access cash without selling the asset. The investment can remain invested while the loan is outstanding. Galloway points to wealthy individuals such as Elon Musk as examples of people who have used borrowing against assets as part of their financial strategy. The idea can extend beyond stocks to businesses, real estate, and other valuable assets. Over time, estate planning can also determine how that wealth is transferred to the next generation and what taxes may apply. This highlights a major difference between earning money and owning wealth. Someone earning millions through a salary can face very high income tax rates, while someone whose wealth comes from appreciating businesses, stocks, or real estate has access to completely different financial tools. The bigger lesson is that building wealth isn't only about how much money you make. It's about understanding what you own, how those assets can work for you, and how the tax system treats different forms of wealth. Media: The Diary Of A Ceo (YT) Follow for more content like this. #wealthy #businessman #entrepreneurship #success #money

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Wednesday 12 August 2026 01:48:56 GMT