Chartered Accountant Nitin Kaushik emphasizes that wealthy individuals leverage debt as a strategic tool for wealth building rather than viewing it as a financial burden. Instead of selling high-performing assets, they often opt for loans against assets like stocks or real estate, which helps them avoid capital gains tax that can range from 12.5% to 20%. By taking asset-backed loans at interest rates of 9% to 10%, they gain immediate liquidity while allowing their investments to continue appreciating in value. This method is particularly advantageous in India, where it offers access to capital with minimal tax impact. However, Kaushik warns that this strategy requires careful planning and discipline, as mismanaged loans can quickly become a liability. He highlights the distinction between productive debt, which can foster growth, and unnecessary debt, which can harm financial stability. Ultimately, understanding the interplay of money management, taxation, and long-term investment strategies is vital for all investors.