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    Can wealth be created without borrowing money?

    Posted By : Prerna Singh 1 year ago Discussions

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  • Propscience 1 year ago

    Wealth creation comes from deployment of savings into viable investment options. Taking debt is a way of increasing those returns by having a positive arbitrage between the rate of interest to be paid on the debt and the return on investment being earned on a particular option. So, debt comes with its own pros and cons and one should be careful not to over leverage because if the arbitrage turns negative then your net worth can get eroded.

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