How the Wealthy Use Debt

Most people fear debt. They see it as something to avoid at all costs—a financial burden that keeps them stuck, drowning in monthly payments.

But here’s the reality: Wealthy people love debt. Not because they enjoy owing money, but because they know how to use it strategically to grow their wealth.

The wealthy don’t see debt as a trap—they see it as a tool.

While the average person takes on debt for liabilities (like cars, clothes, and vacations), the wealthy use debt to grow their business faster—investing in assets that increase revenue and scale operations.

If you’ve been taught that “debt is bad,” it’s time to shift your mindset and learn how to leverage debt the way the wealthy do.

Positive Debt vs. Negative Debt: The Wealthy Understand the Difference

Not all debt is created equal. There’s a huge difference between negative debt and positive debt.

• Negative Debt is money borrowed for things that lose value over time and don’t put money back in your pocket. Think credit card debt, car loans, and consumer purchases. These are liabilities that drain your wealth.
• Positive Debt is money borrowed for things that increase in value or generate income. Think real estate, business loans, and investments. These assets work for you, helping you build long-term wealth.

The wealthy avoid bad debt and embrace smart debt—using it to expand their businesses and increase revenue.

Why the Wealthy Love Debt

1. They Use Debt to Make Money

One of the biggest differences between the wealthy and everyone else is how they use their money. While most people save up to buy something outright, the wealthy prefer to use leverage—borrowing money to expand their operations faster. 

Example:
Imagine two entrepreneurs that want to launch a business:

• Person A saves for 3 years to fund product development, inventory, and marketing. They grow slowly, limited by their personal savings.
• Person B takes out a $100,000 loan today, immediately hiring the right team, increasing production, and launching a strategic marketing campaign. Within a year, their business generates $300,000 in revenue, paying off the loan while making a profit.

Who comes out ahead? Person B. Instead of waiting for slow, organic growth, they used debt to scale quickly, create revenue, and multiply their success.

This is why wealthy entrepreneurs don’t fear debt—they fear missed opportunities by not using debt to fuel growth.

2. They Let Their Business Pay Back the Debt

Most people take on debt personally, thinking about how long it will take them to pay it back. The wealthy think differently—they take on debt strategically and ask, "How long will it take my business to pay this back?"

By investing in revenue-generating assets, they position the debt to pay for itself.

Example:
A wealthy entrepreneur takes out a $100,000 loan to expand their business. Instead of stressing about making the payments personally, they use the loan to increase production or marketing—leading to higher sales and profits. The business covers the loan, not their personal bank account.

This is why the wealthy don’t hesitate to use debt for business expansion—because they understand that if done right, the returns far outweigh the cost of borrowing.

3. They Use Debt to Scale Faster

Wealthy individuals and businesses don’t rely solely on saving money to grow—they use leverage to scale quickly.

Imagine a business that generates $50,000 per year in profit. The owner could wait 5 years to save enough to expand—or they could take out a $250,000 loan, scale immediately, and increase their annual profit to $150,000.

Instead of waiting and growing slowly, they use debt to expand faster, make more money, and pay back the loan while still growing.

This is how major corporations operate:

• Amazon, Apple, and Tesla all use debt to fuel growth.
• Real estate moguls borrow money to buy more properties instead of waiting decades to buy with cash.
• Entrepreneurs use business loans to increase inventory, hire employees, and scale operations—knowing that waiting too long means losing out on bigger opportunities.

The wealthy use debt to create more wealth, while the average person avoids debt and misses opportunities.

How You Can Start Using Debt the Right Way

Now that you understand how the wealthy use debt, here’s how you can shift your mindset and start leveraging debt wisely:

✅ Use debt for assets, not liabilities. Before taking on any debt, ask yourself: Will this make me money, or will this cost me money? If it’s not generating income, think twice.

✅ Think like a business owner. Instead of asking, “How long will it take me to pay this off?” ask, “How can I use this debt to create income that pays it off?”

✅ Use OPM (Other People’s Money). The wealthy don’t rely solely on their own cash—they use bank loans, business credit, and investor money to scale faster.

✅ Leverage, but don’t overextend. Smart debt is a tool, but reckless borrowing is dangerous. Always make sure your debt has a clear return on investment.

Final Thoughts: The Wealthy Know the Power of Debt

The wealthy don’t avoid debt; they use it strategically to grow their businesses and build generational wealth.

So next time you hear someone say, “Stay away from debt!”—remember, it’s not the debt that’s the problem. It’s how you use it.

Use debt wisely, and watch it work for you 🚀

💰 Ready to leverage debt like the wealthy? Discover how much funding you qualify for and start using smart debt to launch or scale your business - click here.