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In finance, leverage (or gearing) is about using debt (other people's money) rather than equity (your own money) for the purchase of an asset. It allows businesses to use assets they wouldn't normally be able to afford.
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In this video I'll explain how to tell the difference between good debt and bad debt according to Robert Kiyosaki. Because sometimes it's worth going into debt and other times it can leave you in a financial mess.
00:00 What is Debt
01:00 Good Debt vs. Bad Debt
03:42 How to Use Debt to Grow a Business
07:12 Why Debt Always Carries Risks
More Finance and accounting videos from Leila Gharani: https://www.youtube.com/playlist?list=PLmHVyfmcRKywV8Bk6euT02xxtv8YVDkZs
Check out the full article: https://www.xelplus.com/financial-leverage-explained
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