Leverage is a tool used in many, many different situations. How and where you are going to use it is really the question that has to be answered.
When you look at the wealthy people of the world, what do they have in common other than large bank accounts? With the exception of professional athletes and movie stars, they all have businesses. Actually, if you take a second even professional athletes are now starting their own businesses while they are still playing their respective sport. So what do businesses offer the wealthy? In one word – leverage.
How to Utilize Leverage to Your Advantage
The term is used in many different contexts, but for the purpose of our discussion, we want to look at how leverage helps us financially. The definition of leverage in the financial world has two meanings.
The first is the use of financial instruments or borrowed capital, such as margin to increase the potential return of an investment. The second meaning is the use of a company’s debt to finance a firm’s assets, or from a personal point of view, a mortgage.
In the second case, the use of other people’s money is being used to create and/or build a new asset. Turning this back to an individual in the business world, leverage is the use of other people’s efforts to create and/or build an asset. Instead of using other people’s money, it comes from other people’s efforts.
Every successful business will take advantage of leverage and that is what we want to focus on, as this is what the wealthy have used to create financial and time freedom with their businesses. After all, there are only 24 hours in a day and people can only work so many of these hours. In order for a business to be successful, there must be a proper balance of the workforce to work being done. As a business expands and the workload increases, the company must hire new employees. The additional employees allow the business to further leverage their efforts to accomplish the tasks required to get the job done.
This is the traditional business model and obviously works. The only problem with this is that leverage is being used to accomplish the company’s goals and not the individuals. So what type of business model allows an individual to benefit from the true power of leverage?
With the ever-changing global economy, everyday people are waking up to the fact their current source of income, while sufficient, many not be a stable as they once thought. Recognizing the importance of leverage within entrepreneurship, the search begins for a business solution that will fulfill their needs.
Continue reading about how people, regardless of background, entrepreneurial experience are fulfilling their financial needs while at the same time using the power of leverage to create true time and financial freedom. Read The Power of Leverage.
* Engineered Lifestyles does not guarantee any level of success or income from the NHT Global Business opportunity or any other money-making opportunity. Every independent distributor’s income depends on his or her own efforts, diligence, and skill. Please see our full Earnings Disclaimer here.