Name: Why All Millionaires Follow The Debt Investing Rule
Uploaded: 2025-06-18T11:14:39.000Z
Duration: 19 min 51 s
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Have you ever wondered why so many rich people have so much debt?

Even billionaires with hundreds of billions of dollars still have a lot of debt.

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You borrow money when you don't have the cash to buy it.

You use your credit card when your checking account is empty.

Even corporations that worth trillions of dollars, apple, amazon, mcdonalds, google, all have hundreds of billions of dollars of debt.

Apple, for example, carries a debt of 98 billion dollars.

Microsoft has 62 billion dollars of debt.

Our entire lives, we are taught that we have to avoid debt at all costs.

Because debt is slavery, debt is something bad.

And yet the richest people in the world use the debt all the time.

Do they know something that the rest of us don't?

Why do some people end up financially miserable using debt while others making insane amounts of money with debt?

The entire tax code was designed in such a way that we make some people, especially the poor people, pay most of the taxes.

But to help the rich people to avoid taxes, we have created something called debt.

Yes, debt has always existed throughout the entire history.

But we have changed the understanding of debt within the tax code and turned it into a loophole that would allow rich people to avoid taxes, let's say for the sake of simplification, that income tax is 20%.

The point of taxes is for the government to generate income to fund the government, to fund different government programs.

On one side we have somebody who is making 200 thousand dollars, on the other side we have someone who makes 50 thousand dollars.

And if the income tax is 20%, then the guy who is richer is paying 40 thousand dollars in taxes, while the other person who is making 50 thousand dollars is paying 10 thousand dollars in taxes.

So at first glance, it seems like the tax code is extremely fair.

The more money you make, the more taxes you pay.

And the United States has a progressive tax system, which means that the more money you make, the higher is going to be your tax bracket, so the more taxes you pay.

And the entire system seems like it's a fair system that is taking into advantage or into account everybody's interest.

If everyone is paying so much taxes, why is the government having almost a 2 trillion dollar deficit?

On one side, you can make the argument that politicians are really bad at spending money, and that's why they are wasting so much taxpayers money and they have to borrow extra 1.8 trillion dollars to balance the budget.

But on the other side, think about it for a moment.

The United States is the wealthiest country that has ever existed on planet earth.

The kind of wealth that the United States is creating is unimaginable for most people.

The United States has so many billionaires, the world's most successful corporations.

These corporations make the kind of money that you and I cannot even imagine in our wildest dreams, and yet we still cannot possibly balance the budget.

The United States has almost 813 billionaires.

There are more millionaires in the United States than the amount of people that exist in many countries across the globe.

On top of that, United States has the most valuable companies in the world.

Some of these corporations make more money than entire nations on the other side of the ocean.

Last year alone, corporations made 29 trillion dollars in total.

If these corporations would pay 5% of that income into taxes, it will amount to 1.5 trillion dollars, and it will close the 1.8 trillion dollar deficit that the government is suffering right now.

And we have not included the millionaires who supposed to pay more taxes, or the billionaires who are not paying almost no taxes whatsoever.

So if the corporations alone will pay a little bit more in taxes, we would not have an entire deficit at all.

How do all these billionaires and millionaires and corporations end up avoiding so much taxes?

The answer is very simple and straight forward.

For you, debt might associate with a credit card debt, with a mortgage, with a car loan, or a personal loan.

But for corporations, millionaires, and rich people, debt is a completely different thing.

Debt is the best tool to avoid paying taxes, and in fact, it can also be used to make even more money.

You have stupid debt, that's the debt that most people actually end up using, such as your credit card.

And then you have smart debt, and this is the debt that billionaires often use.

But to understand that, we have to answer a different question.

Most people don't have a clue of what money truly is.

For most of human history, gold was playing the role of money, and it made sense.

So if I wanted to buy something, I would take a piece of my gold, and I would give it to somebody else, and in exchange, I will get that product or service.

If I want to loan money to people, I would loan my gold, and I will not have that gold back unless I will be given back that loan by the people or from the people to whom I loaned that gold in the first place.

However, today money has a completely different understanding.

Money today is simply a unit of measurement.

Just like we have created miles to measure the distance between one place and another.

If you want to go from your house to a Walmart that is closest to you, let's say it's 5 miles.

It's simply a unit of measurement that we have created to measure the distance between you and the closest Walmart.

All of those trillions of dollars that you hear about that billionaires have, don't actually exist anywhere.

They are simply a unit of measurement to measure the value of those things.

When money was just paper, it was still considered money to a certain extent.

Because you couldn't simply print unlimited amounts of money.

And we have a lot of examples historically where the government has printed too much money and when the country was filled with all of this cash, it ended up with hyperinflation where the money lost its value.

Today we no longer have that problem. 97% of all the money that exists in the world are nothing but digits in the computers.

They can be created by any bank today in the world and they will instantly enter the economy and nothing has actually been created.

And it doesn't take much for the bank to just write down those digits in the computers.

JP Morgan can create it within a glimpse of an eye.

You can buy whatever you want with that unimaginable or imaginary money that we have created out of nowhere.

We can't be straightforward with this because it might seem like a conspiracy theory.

We have taxable income and we have non-taxable income.

And debt is the purest form of non-taxable income.

It might not make sense to a lot of people because at the end of the day it still ends up as a debt.

And debt is bad because you have to pay interest.

But what if you actually can get that debt at 0% interest rate with no deadline at all.

That is the perfect kind of debt that you want to receive.

If your employer tomorrow would tell you, listen John, instead of paying you $5,000 every month as a paycheck, we are going to give you a loan of $5,000 every single month at 0% interest rate and there is no deadline to pay it back.

I might owe back that money to my employer, but because it's at 0% interest rate, it's not actually growing day by day.

And secondly, there is no deadline to pay that money back.

And if the IRS will come and ask me to pay taxes, I can easily say that this is not income, I don't have to pay taxes on that, I have, theoretically, I have to pay that money back sometime back to my employer.

So it's debt and I don't have to pay a dime in taxes for that money.

And it might seem too simple to believe, or it might seem too good to be true, but this is exactly what is happening in the global financial system.

Let's take it one step forward, you are going to go to the bank and you are going to borrow a million dollars and buy a house for that money.

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Why All Millionaires Follow The Debt Investing Rule

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