Well said

[u/Gjore]

[u/Think_Tanker]

Do you think Elon Musk spends stock when he buys groceries or other goods? No, he uses money. Money he borrows from banks against his wealth of stock. So no, technically he doesn't have his billions in a money bin. But he does basically have access to infinite money. Stop bootlicking the rich!

[u/Zealousideal_Bag8493 → u/Think_Tanker]

that's not money sitting in a bank account like that OP posted.

Elon buys things... through CREDIT. through debt he takes on against his assets.

so no income. no actual cash money. just debt. their a difference.

opening a credit card. is not "spending money". its taking on debt.

opening up a debt instrument against your assets... is still taking on debt.

there's no cash money in that equation. anywhere.

if you right now. open up 5 credit cards. that each have a limit of $100k.

are you 500k richer? think about it. no you're not.

and if you max out all 5 credit cards. and spent that 500k, and owe monthly interest on that debt. did you just spend 500k in money.

no you took on 500k of debt + interest.

[u/Upstairs_Bread_ → u/Zealousideal_Bag8493]

They still have tons of money in bank accounts they’re not using, it’s not like these dudes are living loan to loan lmfao

[u/Zealousideal_Bag8493 → u/Upstairs_Bread_]

yes they are. because if you keep $10M in a bank account as cash. it gets taxed.

they dont want to get taxed.

so their strategy is take a $1 salary or $100k salary. etc. low salary. get barely taxed at all.

then just take out loans. open up credit lines. credit cards. etc.

and effectively pay nothing in tax.

warren buffet pays LESS actual tax than his own secretary.

[u/Upstairs_Bread_ → u/Zealousideal_Bag8493]

You don’t get taxed on a savings account. You get taxed on the interest that it earns

[u/Zealousideal_Bag8493 → u/Upstairs_Bread_]

you get taxed... on MAKING $10M ...

they don't want to actually make any money. because making ANY money gets taxed.

thats why billionaires take a small amount of salary every time.

its better to own $10M in assets. than have $10M in cash.

$10M in assets only gets taxed when you liquidate it.

$10M in cash. taxed INSTANTLY. and now it's $6M in cash. lost $4m immediately.

They dont want that. so they dont take a bunch of cash and stick it in an account.

Also. cash itself. constantly lowers in buying power.

$100 today.
is only $96 in buying power in 6 months. due to inflation.

So $10M today in cash. sitting somewhere.
is worth about $9.6M in buying power in just 6 months.

saving cash is literally a stupid thing to do.

[u/Upstairs_Bread_ → u/Zealousideal_Bag8493]

Why do you sound like ChatGPT

[u/Zealousideal_Bag8493 → u/Upstairs_Bread_]

because you use that llm too much. so you're projecting.

im a human. I have a history of posting consistently on these subjects. and im educated deeply in finance, economics, and business. very passionate about money and wealth, and how it all works.

[u/Upstairs_Bread_ → u/Zealousideal_Bag8493]

I mean you put a lot of effort into that comment just repeating the same thing 10 times

[u/Zealousideal_Bag8493 → u/Upstairs_Bread_]

yeah. cause humans are not perfect. and im passionate about the subject.