Wealthy people borrow against assets instead of selling them. A $1 million gain sold today could become $64 million in a decade if left alone. They pay 7-10% interest on loans while their assets grow at 20%, so they keep the money working and stay liquid without giving up future gains.
So the reason why the wealthy never sell their assets is, let's say that I was able to turn $1 million into $2 million and I sell it and I take this money and I go on vacation and I send my daughter to college and I buy a new house and I buy a new car. Well, that's cool. I take that extra million I made and I buy these things that I wanted, but what I gave up is $64 million if I just would've waited another decade. That is the cost of you selling your assets. And that's what the wealthy know. So what we want to do instead is if I want this million dollars right here, what I could do is I could take a loan out for the $1 million. Now, of course, I have to pay back this loan. This could cost me 7 to 10%, but again, we've established this is going up by 20%. So if this is going up at 20% but I have a loan at 10%, I'll take that deal every day. As long as this asset continues compounding faster than the rate of the debt that I have to pay, I'll want to do that forever. If you want to learn more about the Wealth Operating System, then comment "ready" and I'll send you an invite to the free training I have in the workshop coming up, and I'll see you there.
