This is really dangerous advice that I very much hope people aren’t taking too seriously.
- Of course you should save money, then once you’ve saved enough you should invest it somewhere that you’ve researched throughly. Talking about reverse interest rates is a whole different issue.
- You should spend money on extravagant things and parties to look rich?? Really wealthy people often dress so plainly and live in such plain houses you’d never know their true wealth (like Bill Gates for example). People should absolutely cut back in an effort to bolster their savings, not spend it to get a leg up in negotiations. You’d just come off as a fraud anyway.
- Rich people do not add to their debt just so they can leverage it. Very few people increase their debt as part of a well thought out financial plan, but they’re well educated on what they’re doing and it’s always a bet. It’s bad advice to give this advice to the average person. The only debt that is a good idea is a mortgage, and only if you’ve got a very well thought out plan that leaves you positively geared.
This article reads more like a how-to in becoming bankrupt.