Things Rich People Borrow Money To Buy

Which are the Things that Rich People Borrow Money to Buy?

Have you ever thought the above question in your mind? Is there anything in this world for which rich people also borrow money? Well, Yes. There are many things in this world to acquire which rich people also borrow the money.

The straight Forward Answer of the above question is – Assets

Assets are the only thing in this world to buy which the rich people borrow money. Because borrowing money to acquire the assets is known as a Good Debt. And rich always take a good debt. Most of the people borrow money to buy a car, home or doing shopping or travelling the world. But rich people never take a loan to finance their life style. But Rich people only borrow money for acquiring assets only.

Now those who don’t know anything about Assets, let me tell you that What is the definition of an Asset. Well, Asset is something which puts money into your pocket either by Capital Gains or by Cashflow (Passive Income) or both.

The Examples of Assets are Stocks, Bonds, Gold, Real Estate, Businesses, Mutual Funds, Art, Web properties….etc….

You must have read in the finance magazines and news papers that, Billionaire Business Tycoons borrow literally hundreds of millions of dollars to acquire lucrative businesses and real estates all around the world. This is because they know that, once they will repay the debt, they will have a full control and ownership of that Asset and they will get more richer than before.

Borrowing money to acquire assets is a good debt because after repaying the debt, you will have an Asset in your hand. While borrowing money to buy a car is a Bad debt because after repaying the debt, you will have a liability in your hand which will depreciate much faster and eventually lost all of its value.

So if you want to become rich than never borrow money to fuel your life styles but only borrow money to buy Assets…!!!