Wealthy people consistently use other people's money to make more for themselves. More fortunes have been built om borrowed money than in any other way. Successful real estate investors and business owners with millions of net worth, never uses their own money than absolutely have when executing business deals. In fact , I see using other people's money to make money as a game. It's fun, it's challenging, and it's a profitable way to play. And the wealthiest people do it all the time. The big players who have the biggest money all use borrowed funds. They take on huge debt, because the larger the debt, the bigger the asset-and the more awesome their net worth becomes. Of course, the asset must be an income producing, appreciating asset to accomplish this. The other aspect of this policy is that rarely, if ever, use anything but totally disposable income to purchase depreciating assets. You don't have to buy clothes or household furnishing with borrowed money. You should owe money only on assets that will make more money than the money borrowed in buying this assets. If you can't pay cash, then focus on making enough money to pay it on cash. You should do this at the especially at the beginning of your wealth building. Once you begin to accumulate money, you can blow some of it on frivolous things, but don't do that until you can have it. Paying cash not necessarily mean actual currency. It's fine to use credit cards to complete the transaction when you buy depreciating assets as long as you pay the bill in full when it comes in. The technique that is to designate a positive cash flow from a particular asset for a specific purpose. for example, look at the cash flow from a given rental property as money for solving a financial problem-such as paying for a vacation, buying a new car, or providing luxuries for your family. Here's the rule about borrowing money: borrow money only when you can use those funds to make more money. Use borrowed money to invest in appreciating assets, that is, only assets that will increase in value. Use borrowed money to invest in income producing assets-preferably ones that show a positive cash flow, meaning that you have money left over after meeting your loan payments and expenses each month. For example, if you borrow money to purchase a rental property, your rent must be higher than the total mortgage payment and expenses. Never use borrowed money to purchase consumer goods. Never buy clothing, jewelry, or new cars with borrowed money. And if banks or other credit companies try to lend you money and you don't need it, don't take it. Ask them if they will establish a line of credit so you will have quick access to the funds when necessary, but never borrow money you're not going to immediately use to make more money with.