I noticed an interesting story about MrBeast. The guy whose net worth is estimated at $2.6 billion says that his personal account is often in the red. It sounds paradoxical, but the logic is simple.

The thing is, Jimmy Donaldson reinvests almost all of his income back into content and business development. Producing videos costs a crazy amount of money, and he doesn’t spare expenses on production. The result is huge assets, but minimal cash on hand. When he needs personal expenses or funding for a major project, he has to take out loans.

Here’s a classic example of the difference between net worth and actual liquidity. Someone can be a billionaire on paper, but have an empty account. MrBeast has adopted a full reinvestment strategy—and it has worked. His wealth is growing, but there’s often no cash in his wallet.

An interesting model for thinking about how the wealth of successful entrepreneurs really works.