How do billionaires use debt and leverage to build wealth?

Billionaires strategically use debt and leverage as tools to build wealth rather than avoiding it. Real estate investor Robert Kiyosaki emphasizes that debt is money when used intelligently, contrasting this with the common advice to live debt-free. He explains that while debt is dangerous if misused, understanding how to leverage it is key to wealth building. The strategy involves using other people's money—specifically through bank loans and financial instruments—to purchase assets that appreciate or generate income. One billionaire describes the system: when people deposit money in banks, banks have an expense and must lend that money back out. By understanding this system, entrepreneurs can step out of being savers and instead use leverage for their advantage. In real estate specifically, billionaires buy properties with relatively small down payments, then refinance as the properties appreciate to pull out equity tax-free, which they use to buy more properties. This compounding leverage strategy turns initial capital into massive portfolios. However, the key distinction is that successful billionaires use leverage strategically on income-producing assets, not on consumer goods, and they maintain the discipline to manage the debt responsibly rather than letting it control them.