Finance lessons part 40

Why do many millionaires refuse to pay cash for a $10 million U.S. building? Because paying cash can actually make them poorer. Most people never realize why. Here's the reason. Let's say Josh has $10 million US dollars sitting in his bank account. He wants to buy a commercial building worth exactly $10 million US dollars. Most people say pay cash. Problem solved, right? But Josh doesn't. Instead, he puts down $3 million US dollars. The bank lends him the other $7 million US dollars. Now, you might be thinking, why borrow money if you already have it? Because Josh wants his money working everywhere. The building can generate rental income while the other $7 million US dollars can still be invested into businesses, stocks, or other investments that could continue growing. And here's where it gets interesting. He isn't trying to pay for it all. He's trying to control the asset. Keep most of your money free. That's why many wealthy investors don't ask, 'How can I pay this off?' They ask, 'How little of my money controls this?'