How leverage makes you rich

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 

  1. OPT ( other people’s time)
  2. OPE ( other people’s experiences)
  3. OPI ( other people’s idea)
  4. OPW (other people’s work)
  5. 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.

If you like this message or if you want to have more information on this topic, you can leaf a comment below in the comment box.

 

4 responses to “How leverage makes you rich

Hello, your post is so on point with what you are sharing and I am sure that your viewers will find this information you are sharing here to be of good help.

Great explanation of the word “Leverage” and how it can be used to create your own wealth – though for almost all of these you do need a starting point – meaning you can’t really go to the bank and ask for a loan to buy an asset when you don’t have some kind of backing! (credit rating?)
I think that affiliate marketing is the one option where you can start with very little and grow. That is OPI par excellence =)
Cheers, Orion

Hello, Orion.
I totally agree with you, that you need a backing to get a loan from the bank and leveraging OPI through affiliate marketing can help you with that.
Thanks for your comment.

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