Who Do You Want to Be? The Debt-Free Millionaire or the Leveraged Billionaire?

Who Do You Want to Be? The debt-free millionaire or the leveraged billionaire?

When it comes to building wealth, there’s no one-size-fits-all formula. Some people swear by staying debt-free, while others embrace debt as a tool for building massive wealth. To explore these contrasting approaches, let’s look at four financial powerhouses: Dave Ramsey, Warren Buffett, Grant Cardone, and John Hope Bryant.

The big question is: Who do you want to be? The one with the private jet and almost a billion dollars in debt, like Grant Cardone, or the one $300 million strong with a business that generates nearly $1 billion annually, like Dave Ramsey?

Dave Ramsey: The Debt-Free Millionaire

Net Worth: ~$700 million

Philosophy: Debt-free living is the cornerstone of Dave Ramsey’s success. He built his wealth by teaching people how to eliminate debt, save for emergencies, and invest in mutual funds. His company, Ramsey Solutions, brings in over $300 million annually, and he owes none of it to debt.

Debt: Zero. Ramsey practices what he preaches: financial freedom through no debt.

Pros of Ramsey’s Approach:

Peace of mind from not owing anyone.

Financial security even during economic downturns.

Wealth built on steady, conservative investments.

Cons:

Slower wealth accumulation compared to leveraging debt for high-return investments.

Warren Buffett: The Strategic Minimalist

Net Worth: ~$149.7 billion

Philosophy: Buffett avoids personal debt but isn’t entirely opposed to it. His company, Berkshire Hathaway, strategically uses debt to fund long-term investments. He’s a proponent of disciplined spending and investing in high-value opportunities.

Debt: minimal personally, with manageable corporate debt to optimize business operations.

Pros of Buffett’s Approach:

Massive wealth through disciplined, value-driven investments.

Strategic use of debt for high returns without personal liability.

Cons:

He requires deep financial acumen and patience to replicate his success.

Grant Cardone: The Leveraged Mogul

Net Worth: ~$600 million

Philosophy: Grant Cardone’s mantra is "use other people’s money to build wealth." He heavily leverages debt to finance his real estate empire, which generates massive cash flow. While his debt is in the hundreds of millions, it’s tied to income-generating assets, making it what he calls “good debt.”

Debt: Hundreds of millions in real estate financing.

Pros of Cardone’s Approach:

Rapid wealth accumulation by using debt to scale investments.

High cash flow from real estate assets.

Cons:

High risk if market conditions turn unfavorable.

Requires a strong stomach for large-scale debt.

John Hope Bryant: The Empowering Educator

Net Worth: ~$10 million

Philosophy: John Hope Bryant focuses on financial literacy and empowerment, particularly for underserved communities. While he doesn’t promote excessive debt, he teaches the importance of responsible credit usage to build wealth and create opportunities.

Debt: Likely minimal personal debt, though he encourages leveraging credit responsibly for growth.

Pros of Bryant’s Approach:

Focus on empowering others through financial education.

Responsible, balanced view of credit and debt.

Cons:

Wealth growth is more focused on impact and education than personal accumulation.

Who Do You Want to Be?

Do you want the peace of mind and financial security of someone like Dave Ramsey, who is debt-free and growing his wealth conservatively? Or do you aspire to the high-risk, high-reward lifestyle of Grant Cardone, who uses debt as a tool to scale his empire?

Perhaps you align more with Warren Buffett’s strategic and calculated use of debt to fund big opportunities or John Hope Bryant’s approach to empowering others while maintaining responsible financial habits.

The Bottom Line

There’s no right or wrong answer. It’s all about your goals, risk tolerance, and personal philosophy. If the idea of carrying hundreds of millions in debt gives you sleepless nights, Ramsey’s debt-free approach might be for you. But if you’re ready to take big risks for potentially bigger rewards, Cardone’s path could be appealing.

So, who do you want to be? Grant Cardone-style flying private but leveraging debt to fund your lifestyle, or the one enjoying financial freedom without ever worrying about debt collectors? 

In the words of the rap group Black Sheep, “You can get with this, or you can get with that.” The choice is yours.