Inspiration – Paul G
When it comes to credit cards, millionaires charge strategically to earn rewards points and protect against fraud. But they avoid carrying balances, since interest rates erase any rewards earned. They pay cards off monthly and leverage 0% APR offers to delay interest as long as possible.
Unlike average consumers, millionaires don’t take out auto loans. They understand cars depreciate rapidly, so debt exacerbates those losses. Millionaires buy quality vehicles with cash and drive them for years to maximize the return on investment.
In contrast, millionaires recognize student loans as “good debt” that pays lifelong dividends. They strategically leverage loans to pay for degrees at top universities to amplify earning power. The career opportunities repay student debts many times over.
Millionaires also tap home equity lines of credit prudently. They use HELOCs only for investments that generate positive cash flow, like rental properties. HELOC interest is tax deductible since the funds are for investments rather than consumption.
The key is using debt strategically for appreciating assets, not liabilities. Millionaires avoid high-interest credit card, auto, and personal loans that drain wealth. They leverage mortgages, lines of credit, and other tools to acquire income-producing assets.
