When investing, leverage can be a powerful tool. Example: Buy a $400,000 house, but you only need $80,000 (20% down payment) or $14,000 (3.5% FHA loan) if you’re going to live there. Now, you control an asset worth $400,000 instead of $80,000 or $14,000. When that asset appreciates 5% in year one, that’s 5% of $400,000 (which is $20,000) vs. 5% of $14,000 (which is only $700). That’s over 28x the results. Now, you might argue that you’ve taken on debt which is bad. You HAVE taken on debt, but...