Creating Wealth Through Leverage

Massive wealth creation requires leverage. What is leverage? This is the power to control many things with little. This is one of the important principles that rich men know and do not deny. Nobody knows everything. If you want to create wealth with minimal stress, you must use the power of leverage in these various dimensions. In the business arena, there are five types of leverage:

  1. Other Community Money (OPM)
  2. Other people’s experiences (OPE)
  3. Other people’s ideas (OPI)
  4. Other People’s Time (OPT)
  5. Other people’s work (OPW)

This dimension of leverage has become an indispensable tool for rich people, and I think it’s important for you and me to start exploring this gold mine in our efforts to create wealth. The degree of mastery of your leverage will largely determine not how much wealth you will be able to make, but it will speed up the rate at which your desire for wealth creation will pay off. There is something common to all dimensions of this leverage. The five types of leverage center around people. If we start analyzing each kind of leverage that states you will find that person, I mean human resources. What I’m saying is that understanding leverage in terms of human capital will surely instill your desire to create wealth. There is no solo success.

What leverage does is strengthen your results. Take, for example, invest in real estate or stocks. There are times when you see opportunities to make money in one of these two investment opportunities, but you don’t have the financial resources to finance the transaction. In the example of a smart entrepreneur, you know it’s time to look for margins or find out the loan entirely well that once you can close the deal, the credit or margin will be managed with some excellent benefits for you to finish. This will end your win-win situation without a penny from your pocket. You can see the need to truly master the use of leverage in-depth to enjoy all the benefits.

I also have to state clearly that there is a downside to leverage when it not appropriately managed.