How leverage makes you rich
Financial leverage is the greatest wealth creation tool in wealth accumulation. Yet few people understand leverage and can make good use of it.
Financial leverage is the amount of debt that someone can use to buy more assets. Leverage is employed to avoid using too much equity to fund operations.
When you have to do with big businesses you can leverage other peoples time, other peoples energy and other peoples idea.When you have to do with investment, financial leveraging, you can leverage other peoples money.
Leverage, in general, is the ability to control a lot with just a little. Leverage gives you the ability to make use of more resources than just your own. Through leverage, you advance the speed to become rich. The more leverage you have the faster you become rich.
Some ways of leverage
- OPT ( other people’s time)
- OPE ( other people’s experiences)
- OPI ( other people’s idea)
- OPW (other people’s work)
- OPM ( other people’s money)
To leverage OPM
Other people’s money is simply the use of good debt. It’s using money that you have borrowed to buy assets. When you are an investor, you may make use of other people’s money so that it can facilitate and speed up your process to become rich.
Other people’s money let you buy assets earlier when you borrow the money from a bank or from a sleeping partner. A sleeping partner is someone who only borrows you his money to invest while he splits the profit with you.
To leverage OPT and OPW
Other people’s time is the time that other people are trading for money which you can leverage to produce things that, on your own, you can’t produce in such a short time. You can hire people or, as an employer, you can have people working for you as an employee.
So when you are an employer, a businessman or businesswoman, you can leverage the time and energy of the people for a larger production in a shorter of time.
To leverage OPE and OPI
Other people’s experiences and/or other people’s idea you can leverage when you take a mentor to shorten your learning time or your implementation time.
You can also make use of other people’s experiences and/or other people’s ideas by reading books, attending seminars and other things. By doing this, you don’t need to learn or implement things by trial and error which will take a lot of time.
If you can leverage what someone else has already learned and done, you can shorten the learning time and/or implementation time considerably.
To leverage OPI
Another way to leverage other people’s idea is through franchise, networking or affiliate marketing. You will take a proven method and replicate it yourself to run with it.
Call to action
So I urge you to learn and to see how you can leverage OPT, OPM, OPW, OPI, or OPE so that you can grow faster in your personal development and wealth.
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