The Wealth Accelerator: Why Strategic Debt Is Your Most Overlooked Financial Asset 

Forget what you’ve been told—discover how calculated borrowing can be the cornerstone of building lasting wealth 

Growing up in the New York City Housing Authority projects, I learned my first financial lessons on park benches and street corners. The neighborhood OGs. Those older, seemingly wiser voices would drop knowledge that shaped how many of us viewed money: “Stay out of debt. Buy everything in cash. Don’t let the system own you.” 

These lessons came from a place of protection. In communities where predatory lending was rampant and financial institutions historically redlined neighborhoods like ours, debt was rightfully viewed with suspicion. We had a gentleman named Mr. Doyle. Mr. Doyle would point to his Cadillac and gold chain, both purchased with cash, as proof of his financial wisdom. “No bank owns a piece of me,” he’d say with pride that I deeply admired. 

But as the years passed, I noticed something: despite their strong anti-debt stance, few of these neighborhood financial advisors had built genuine wealth. While Mr. Doyle had his Cadillac, he was still renting at 50. The jewelry collector on my block had impressive pieces but no retirement savings. The “cash only” philosophy had protected them from bad debt but had simultaneously locked them out of the very vehicles the wealthy use to build generational assets. 

What I didn’t understand then, what many of us from similar backgrounds don’t initially grasp. There’s a fundamental difference between consumer debt that drains wealth and strategic debt that builds it. 

The Hidden Cost of the “Cash Only” Mentality 

The “cash only” approach taught in many inner-city communities stems from genuine historical trauma. This protective mechanism has become a wealth-building handicap. While avoiding predatory debt is wise, avoiding all debt creates an invisible ceiling on wealth creation. The reality is that most substantial wealth in America has been built with strategic leverage using other people’s money to acquire appreciating assets. 

The Asset Class Divide 

In my neighborhood, “investments” typically meant depreciating assets: cars, clothing, jewelry, and electronics. These items lose value the moment you purchase them. When I finally entered the financial sector, I was shocked to discover how differently wealthy individuals viewed debt. They weren’t avoiding it, they were strategically using it to multiply their holdings. 

Reframing Debt: From Chain to Catalyst 

The turning point in my financial journey came when I stopped seeing all debt as equal. The credit card debt that funded a vacation was fundamentally different from the mortgage that purchased a multi-unit property generating monthly income. 

Consider this simple example: With $25,000 in savings, the cash-only mentality would limit you to a $25,000 investment. But used as a down payment on a $100,000 rental property with positive cash flow, that same $25,000 can control an asset four times its value. If that property appreciates at just 3% annually, you’re gaining equity on $100,000, not just on your original $25,000. 

This is how wealth is built in America, and it’s a system many in our communities have been culturally taught to avoid. 

Breaking the Cycle 

The first step toward financial empowerment is distinguishing between wealth-draining and wealth-building debt. Wealth-draining debt funds consumption or depreciating assets. Credit cards, auto loans, and payday advances typically fall into this category. 

Wealth-building debt, by contrast, is leverage used to acquire assets that either: 

● Appreciate over time 

● Generate income exceeding the cost of borrowing 

● Provide tax advantages that offset borrowing costs 

● Create cash flow from assets that covers your expenses 

A New Financial Blueprint 

My journey from the NYCHA to financial independence required unlearning as much as learning. I had to challenge deeply ingrained beliefs passed down through generation beliefs that once served as protection but now limited growth. 

Strategic debt became my most powerful wealth-building tool. It allowed me to acquire cash flowing businesses and rental properties that generated passive income. It helped me launch a business when I didn’t have all the capital needed. It enabled me to invest in education that multiplied my earning potential. 

The neighborhood OGs weren’t wrong about predatory debt, they just didn’t have access to the complete financial playbook. Our communities don’t need to avoid debt entirely; we need to master its strategic application while avoiding its predatory forms. 

The true financial freedom our communities seek doesn’t come from avoiding the system but from understanding it well enough to make it