Member-only story
How The Rich Eat Cake
A simple yet powerful strategy to have your cake & eat it too.
Here’s a dose of reality:
Rich people buy assets and look poor.
Poor people buy liabilities and look rich.
And here’s another nugget:
Rich people NEVER sell their assets.
Instead, they leverage them.
The method is clear-cut. Own an asset? Leverage it as collateral, secure a loan, and enjoy the benefits while the asset appreciates in value. This strategy smartly sidesteps taxes – loans aren’t taxable – allowing for further investment or luxurious living on borrowed funds. As the asset’s value climbs, simply roll the debt into a new loan and continue the cycle.
This technique allows you to enjoy the benefits of your assets, like having your cake, eating your fill and STILL watching it grow slice by slice, without ever giving any of it away.
Through a cycle of calculated debt and asset appreciation, living on borrowed funds becomes tax-efficient and loss-free. That’s how the wealthy play the game: maximizing gains without parting with their treasures.
Choosing the right asset is critical. It must be exceptional, scarce, and sought after. And hard to make, impossible to confiscate, guaranteed to grow, and completely under your ownership.
No prizes for guessing what that pristine asset is.
