Use leverage to build wealth
Leverage enable someone to build wealth by using resources beyond your own. As an individual your input and output is limited by different factors. Leverage allows you to multiple these different factor without limitations.
Money leverage
You can Leverage money by buying low and selling high.
You can buy a share of a company at a certain price and sell it at higher price as a result making a profit. aka capital gain.
Financial leverage
You can leverage other’s people money instead of your own.
Imagine you enjoy, day trading or swing trading or long term trading. You are really good at it and you are always making profits.
A lot of People will happily lend you or give you their money so that you can trade for them. In other words, you are risking other people money and not your own. But they are willing to give you their hard earn money because the reward is much greater than the risk.
People Leverage
You can leverage people by outsourcing or delegating task to others.
Imagine you would like to write your life biography but you are not writer. You can hire someone that is skill at writing to write the book for you.
Image you make videos. But you don’t have the time to edit it. You can hire someone to edit the videos for you.
What ever business you start there are certain task that you can outsources to other. You can only do so much yourself.
Marketing leverage
You can leverage ads by putting ads in front of people when they are searching for something, so you can get more customers.
Have you ever notice when you watching a video and suddenly a commercial or an advertisement show up? that’s an ad. Someone is trying to sell something or gain a customer.
You can use resources to communicate with the masses. You can put ads on blogs, videos like YouTube, podcast, newsletter, radio shows, magazine, social media, Etc.
System leverage
you can leverage systems. One of them is a system call email marketing.
You can build an email list of customers with buying intent.
Basically, you can leverage technology.
Leverage is always come down to people
What ever you leverage, it will always come down to people.
Time leverage
You want stop trading you time for money.
Since a day only have 24 hours, it mean that your input and output is cap at 24 hours. But you can eliminate that 24 hours restriction by leveraging other’s people time.
Network Leverage
you can leverage other’s people network.
Image that someone really famous like “mrBeast” YouTube channel. It currently have 75.7 millions subscribers. If you were to appear on his channel a lot of people will see you. Some of these viewers will look you up and subscribe to your channel.
Knowledge leverage
Even though this one was on of the first one that came to mind I wanted to do this one for last for a reason.
You see leverage always come down to people. You can have a million dollars, but if you were the only person on earth all that money will be useless because there is no one to trade with.
Main Goals: Physical health, when you are healthy life is better. And financial freedom, you want to be able to work because you want to not because you have to.
Try to think of someone that became wealthy without the use of leverage. I could not find one person that did. There is always some type of leverage.
You want to leverage other’s people knowledge. Whether is their experiences, skills, connections, resources, money, you name it.
Why?
The answer is simple
How do you know what you know?
Almost everything we know we learned from someone else. I am not just talking about school learning, I am talking about social learning. In one way or another we are surrounded by people. Whether is family, relative, friends, teachers or foes.
Even if you do not realize it, you are influence by the people around you.
The reality is that if your parent are wealthy most likely you will end up wealthy. And if you parent are not wealthy most likely you will end up not wealthy.
Even though it is most likely, there is still hope.
If you not wealthy at the moment. Just start your journey to wealth and health. If for some reason your journey ends before you can reach it, at least your next generation will have a better start than you.
That’s it.
Take a calculated risk.
Now, start and adjust as you go.