Leverage may be a dirty word right now, but it’s still the best way to build wealth.
LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE: Lets begin with OPM–Other People’s Money
Leverage has gotten a very bad name in this current financial crisis. And lets be honest–debt and the deficit we’ve accumulated is the bane of our country’s present financial problems, not to mention so many individual’s over-leveraged experience, along with the anxiety-filled, sleepless nights that come along with it. What were we thinking!?!
But measured, reasonable, wisely applied leverage is still the best way someone with limited means can become someone with great means. It begins with a critical difference in mindset.
A consumption mindset asks: “How can I manage my debt in order to live the richest lifestyle possible.” The pursuit of this kind of life is an invitation to a stressful, workaholism that is something to be avoided like malaria.
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A non-leverage mindset asks: “How can I scrimp and save, and use whatever is left over to slowly build my nest egg.” The question to ask here is, “Am I avoiding leverage out of the decision to live as debt-free as possible or out of fear?” The former has a lot to be said for it, the latter is just another way to try to avoid all risk.
A leverage mindset asks: “How can I use borrow money wisely to multiply my money-making and business building activities in order to accelerate my returns?”
The biggest difference is NOT how we invest the money we HAVE but how we invest the money we DO NOT HAVE. It is how we leverage the money that we DON’T HAVE that can make us wealthy.
A leverage mindset does not look at an investment with the objection: “I just can’t afford this.” Instead it strategically considers, “How can I best use leverage to pay for this investment in a way that increases my overall return without taking on undo risk.
And don’t forget all those other…
OTHER PEOPLES’ RESOURCES that will leverage your TIME, TALENT & TREASURE…
OPE-XPERIENCE–Learning from MENTORS via in person books, etc.
OPE-XPERTISE–Using business ASSOCIATES to do what they are better trained at
OPM-ONEY–Borrowing CAPITAL which yields a higher rate than you are paying for it
OPT-IME–Building a skilled & committed TEAM to compliment and further your mission
OPS-YSTEM–Working to create the ULTIMATE in LEVERAGE: A TURN-KEY SYSTEM
