Richmond DinhCreator & Founder of Tiny Challenges™

Borrow Money to Build Wealth

25 Mar 2025 · 1 min

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Richmond Dinh argues that debt is not inherently bad and can be a useful tool to build wealth when used to borrow money that earns a higher return than the interest cost. He explains the concept with an analogy: hiring a team member is like borrowing time/expertise, and similarly borrowing money can accelerate wealth-building if returns compound above borrowing costs.

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I do believe that there is a time and place for you to borrow money to build wealth. Because there's a big misconception out there that if you are in debt, that all debt is bad debt. When reality is if you borrow money to make money and the money that you're making or the wealth that you're building is compounding higher and earning more money than the interest you're paying for the money that you have to borrow, then that's always going to be a good thing and you can get further ahead faster. It's exactly the same principle as if you had a team member and you employ them and let's just say you're paying them $20 an hour. Now the. The reason why you're paying them $20 an hour is because you're borrowing their time. Because you don't have enough time to do what you need to do. So you're borrowing their time and sometimes in some cases, you're borrowing their expertise. And so people borrow time and borrow other people's expertise to get further ahead. But then that's really. You're putting other people in time and expertise deficit, but then you don't want to borrow money to make money. So it's the same thing. People think debt is such a bad thing. Debt can be really useful for you if you use it in the right way.