Leverage your way to wealth!
Tuesday, April 3, 2007/
Leveraging your earning power, through investments in the stockmarket, property or a business, can speed up your wealth creation!
Leverage is a way of earning income not entirely based on the hours we spend at work!!
Very few people are paid such a high hourly rate that they can work at their own pace and live well; most of us need to think of ways to get our money – investments – working for us so that we are not tied to the grind of years and years of work and no freedom!
This principle is, in income terms, really about leverage: being able to lever up your income to give it more value through investment in the stockmarket, in property or in a business.
Running a direct-selling company showed me that you don’t need to have a large amount of money to start with to achieve leverage.
In direct-selling and multi-level marketing, you can achieve leverage by recruiting a team of people and earning commission on their sales – the same concept as that of investing in any business – although in this case you generally need to invest very little.
I referred to the concept of leverage in my first blog but I am discussing it again because it seems to be a recurring issue: people simply don’t understand that having financial freedom requires a strategy and needs time and thought!
Sometimes it seems we get so involved in the tactical issues of just running our daily lives that we put the big-picture stuff out of sight – and out of sight, out of mind!
I don’t pretend for a moment that I have resolved all the challenges regarding financial freedom but I clearly understand the basic principles and want to share with you my key strategies
- Save as much as you possibly can.
- Spend only on what you really need and be prepared to negotiate price on most things!!!
- Invest with care and remember that the higher the return, the higher risk!!
- Keep control of your own money; be very wary of anyone who promises amazing returns; that is, take responsibility for you own financial freedom!
- Think about and develop a strategy to leverage your income.
There is a great balancing act between enjoying life each day and being prepared for the future, and it’s important to do both!
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