Leverage and Your Financial Future

If you would like to be someday financially indepedent and never have to wory about financial trouble again, the quicker way to do it is using some form of leverage.  You can do it without leverage, but it will take an extremely long time, maybe 30-40 years, saving your money and investing a portion of it every month, every year, and slowly building a nest egg.

Although the above route is best for the non-risk takers, those who would like to achieve more results faster must employ some sort of leverage.  There are many different forms of leverage, the obvious one that comes to most peoples’ mind is money.  We are all well aware of the power of leverage, some people fear it, and other’s abuse it, while some can get rich off it.

Leverage is a double-edged sword, it can help you, or it can dramatically burn you.  Learn the harness the power of leverage.  The simple explain is this, who do you think will get rich faster, someone who saves up $100,000 and then invests it, or someone who borrows $100,000 at 10% interest, and invests it at 20% interest.

Who do you think the bank would want to loan money to, someone who understands the power of leverage, or someone who fears it.  It is so funny to talk to people about credit cards, “Oh I just use cash,” “Oh I don’t need a credit card,” “I want to avoid being in debt.”  Most of theses people fear the use of leverage, the are scared of the use. 

Most of the richests people in the world in real estate are deeply deeply in debt, Good Debt.  I’am now in debt $200,000.  But my debt is good debt, good debt gets you rich, bad debt gets you poor.  I’am using financial leverage in my financial plan, are you.  My $200,000 debt is GOOD DEBT, good DEBT because it is debt that makes you RICH, this debt is being paid off by the mortgage, I’am able to get MASSIVE returns on my orignal investment because of the leverage.

Learn to harness the power of debt leverage, but debt is just one form of leverage.  See the problem is many people use obsolete forms of leverage, I won’t go into it, but as times change, alot of peoples’ strageties haven’t.  I’m talking to people who plan on potentially relying on social security, I’am sorry, but if you plan on relying on social security your basically planning on being poorer after you work for 40 years.  I don’t mean to sound rude, but its the truth, I don’t want to rely on the social security system which looks very bad right now.

What are some other forms of leverage, words, health, an obvious one,  relationships, knowledge..

Words being leveraged, lets take a look at that, you might have seen in my previous pictures of my office, FAST WORDS, let me explain that:

Words have an extreme amount of abilitly to change everything around your while, by changing your words, you change your realitly the way you think, the way everything you do.

So fast words, I use fast words, and only fast words, if you learn to use fast words to, you will by default, get richer faster.  Just because you are using words that help you achieve this. So lets compare:.

Slow word is saving money, a fast word is raising Capital.

Slow word is appreciation, a fast word is Depreciation or “Phantom Cash”

Slow word is high paying job, a fast word is Cashflow

here are some of the fast words I have on my wall:

  • Depreciation
  • Leverage
  • Cashflow
  • Raising Capital
  • Regulation 53d
  • 1031 Tax-deffered Excange
  • World Class
  • Phantom Cash
  • Systematic
  • Mommentum
  • Networks
  • OPT – Other peoples’ time
  • OPM – Other peoples’ money
  • Exit Strategy
  • Duplication
  • Infinite Returns
  • Association
  • DealsFranchising
  • Deals
  • Brand Recognition
  • Resourcefullness
  • Activity
  • Help others
  • Royalties
  • No Money Down
  • Investors
  • Passion
  • Information
  • Distrubtion Channels
  • Viral
  • Gain Control
  • Focus

Learn to use leverage, or lose to others who do.