you know Building Wealth is like a game but let's face it okay the richest people in the world don't play by the same rules as everyone else and why should they if you had a cheat code to infinite wealth wouldn't you use it in this video we're talking about the infinite money glitch that the rich used to get well infinitely richer and it probably goes against everything you've ever been told about money welcome to alux the place where future billionaires come to get inspired now part one of this discussion is understanding debt what is debt
stay out of debt yeah you've probably heard that your entire life right it's basically like the golden rule of personal finance parents teachers even Financial gurus have drilled it into our heads that debt is a dangerous trap that'll ruin your life and honestly well for most people they are not wrong okay debt is the reason millions of people drown and interest payments struggle to pay their bills and feel stuck in a never-ending cycle of poverty so yeah it's no wonder why most people see avoiding debt as the safest option but here's the thing okay the
richest people in the world do not follow this rule they break it deliberately confidently and often and that's because they see debt not as a trap but as a tool they can use to seize opportunities and multiply their wealth in the most extreme cases debt literally becomes their infinite money glitch now we're going to dive into the exact strategies in this video and even how they use that debt to pay basically zero taxes but first let's start off with the basics what exactly is debt well at its core debt is simple it's borrowed money somebody
gives you a loan you use that money for something else and then you pay it back with some interest on top that hard in the middle how you use that money makes all the difference between good debt and bad debt used right anyone can turn debt into a wealth building machine used wrong well it's a financial sinkhole and unfortunately this is much more common so the perfect example to highlight the difference between good debt and bad debt is credit cards so on the surface you get fast access to a ton of money and then you
pay it off little by little most people especially poor people fall for this oversimplification and they upgrade their lifestyle beyond what they can actually afford that's the essence of bad debt borrowing money to buy things that don't create any value for you clothes gadgets vacations these are all expenses that lose their worth the moment you swipe that card and you could still be paying for them decades after you do so in most cases first first you borrow then you beg but on the other hand the richest people in the world have figured out how to
make good debt work for them so unlike bad debt good debt is borrowed money you use to create value and when you understand how to use it strategically well it literally becomes your infinite money glitch think about it you borrow money to invest in something that creates a little more as your wealth grows you use that to borrow larger amounts repeating this process again and again so this cycle has no limits and it's exactly how the wealthiest people in the world multiply their fortunes okay so now that you've got that we're going to break down
five strategies the rich use to turn debt into their infinite money glitch starting off with one of the simplest and most powerful leverage in real estate so one of the most popular ways of using debt to build wealth is through real estate the concept conep is simple you borrow money to buy a property and it both increases in value over time and generates income for you you win twice but this strategy isn't without its risks if you borrow too much or buy at the peak of the market you could end up owing much more than
the property is worth timing is everything in this strategy but if you get it right you can build massive wealth basically from scratch just imagine you find a small apartment in an upand cominging area it's not flat flashy but you know it has potential so you borrow $20,000 for a down payment then you rent it out and the income covers your mortgage your taxes and other expenses over time the apartment's value goes up and your tenants slowly pay down the mortgage for you after a few years you take out a much bigger loan for a
down payment on a much bigger property a duplex to get a better interest rate this time you put that first Department up as collateral in case you don't pay back the bank but again you're tenants have you covered fast forward and you're not just buying apartments anymore no you're buying entire buildings and neighborhoods all funded by the wealth you've built along the way but by the time you're buying entire buildings and neighborhoods you've unlocked a cycle of wealth creation that just keeps compounding that's why we call this an infinite money glitch you build the Empire
using other people's money but it's your net worth that grows then there's student loans now for many people's student loans are their first experience with debt and let's be honest they often get a bad reputation because well they sort of deserve it right borrowing hundreds of thousands of dollars for a degree in Romance literature or whatever is a financial disaster waiting to happen you'll be drowning in student loans with nothing to show for it but a glorified piece of paper but here's the thing when used strategically student loans can be one of the smartest Investments
you can make say you're passionate about technology but you don't have the skills to break into the industry so you take out a $100,000 student loan to enroll in a computer engineering program it's a lot but after graduating you land a job that pays $150,000 a year think about it in this situation you could completely pay off that loan within a few years you've got a real career in demand and you're earning more than you ever could have without that education it's a CL classic infinite money glitch that pays dividends for the rest of your
life but the key is to study something with a clear path to a high-paying job so less musicology and more data analysis okay but the thing is though investing in your education doesn't always have to mean a college degree mastering financial literacy learning how to build a business and understanding how to manage your relationships are all skills that will really change your life unfortunately though they are not taught in traditional classrooms and that is where the alux app comes in inside there's daily insights goal setting tools and exclusive expert courses on everything from money management
to personal growth so it's like having a personal Mentor in your pocket guiding you every step of the way as you build the life that you've always dreamed of we've got thousands of hours of content that will teach you all of the skills you need to build a life of financial abundance and even become smarter and more physically fit the best part is you don't need to take on six figures of student loan debt to learn them the alux app helps you to invest in yourself for a tiny sliver of that cost of a college
degree and you don't have to wait four years to start applying what you learn because these are real world skills that's what we're all about here okay turning knowledge into action and action into results hundreds of thousands of ambitious people around the world are already using the alux app to accelerate their Journey To Success the question is why not you so if you're serious about investing in your future scan the QR code on screen to get 50% off your yearly plan it's the biggest discount we've ever offered and it disappears when January ends so hop
to it my friend okay so moving on let's chat about business loans shall we one of the most powerful ways to generate wealth with debt is through a business loan basically you borrow money to buy equipment inventory employees whatever you need to level up your business and as it grows and generates Revenue it pays back the loan while building your wealth now of course this strategy can be risky if the business doesn't perform as expected you're still on the hook for that debt that's why it's so important to have a clear plan that tells you
exactly how the risk you're taking will pay off for example imagine you've been running a side hustle customizing sneakers you take existing shoes repaint them with Unique Designs and sell them through social media people love your work so demand eventually grows to the point that you're actually turning orders away that's when you decide it's time to level up and start your own brand so you take out a $50,000 business loan with that money you hire a manufacturer to produce your first batch of sneakers you partner with a freelance designer to refine your branding and you
launch buch a professional e-commerce site it's risky but you've done the math you've calculated your costs and set realistic sales targets your plan shows exactly how this investment will pay off and then it starts to work fast forward a few years and you're running a full-scale fashion brand when done right business loans are the classic infinite money glitch you start off with an idea and a plan and you use somebody else's money to make that into a reality it's a game changer for anyone with the vision and the drive to make it happen but what
about investment Arbitrage because well this is just one of the craziest ways to generate wealth investment Arbitrage is when you borrow money at a low interest rate and invest it in something that generates a higher return than what the loan cost you you get to keep the difference now obviously if the market turns red all of a sudden you could lose all of that borrowed money and you're going to have to figure out how to pay it all back but if your investment does go well you're essentially printing profit out of thin air it's the
ultimate infinite money glitch now let's look at a real world example for a moment so Michael sailor one of the most vocal Bitcoin Advocates used this exact strategy to supercharge his company's value he borrows tens of billions of dollars at near zero interest rates and uses it all just to buy Bitcoin his reasoning is straightforward if the value of Bitcoin grows faster than the tiny cost of his loan the profits are massive and so far it is working right now his company owns over 444,000 Bitcoin they spent about $7 billion to buy them but right
now they're worth over $42 billion that's over 14 billion in profit when done right investment Arbitrage is the ultimate infinite money glitch you're using other people's money to multiply your returns and grow your wealth faster than you could ever do it on your own the rich have been using this strategy for decades now you can see why it's one of their best kept secrets but making money is only half the game what really matters is keeping it from the tax man so this is how the rich avoid taxes using debt because debt is like the
ultra wealthy's secret weapon letting them pay basically zero taxes this next strategy might just blow your mind a little bit most people fund their life through their main source of income right their salary and it is heavily taxed but the ultra wealthy do something much more clever instead of paying themselves a salary they go to the bank and say lend me a ton of money for a tiny interest rate and if I can't pay it back well you can have some of my assets things like stocks or real estate but why do they do this
well when you take out a loan that money isn't technically considered income so you don't get taxed on it you do have to pay a bit of Interest back on those loans but if your credit rating is great and if you're ultra wealthy it is it's pennies compared to what you would pay in tax billionaires like Jeff Bezos and Elon Musk do this all the time instead of selling their Amazon or Tesla stock and triggering massive tax bills they use their shares as collateral to borrow money and fund their billionaire lifestyles billionaires don't pay taxes
they pay interest it's brilliant isn't it but it's also a reminder that the rules of the game are very different depending on how much you know and that's all we got for you today my friend hopefully you learn something and if you want access to even more strategies like these that will help you to build a life of financial abundance come join us inside the alux app all right my friend we'll see you back here next time until then take care
