How can rich people drop all so much money on a daily basis but when they need larger amounts of money, they need to liquidate assets?
Yes, I know that wealth can come from owning assets outside of cash, but how can you spend hundreds of thousands of dollars a month if a their money and wealth is all tied up?
In: 1
They go to a bank, show the bank all of their assets then take a loan out against some/all of those assets to have cash on hand. then payoff the loan on the passive income they do earn or the liquidation of assets not put up against the loan. This is part of how they avoid paying taxes, loans don’t count as income.
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