OPM for protection: OPM in the form of insurance can also be used to pool few resources together to protect against loss of life, valuables, income, and safeguard against other risks.
Other people: this form of leverage can be utilized by starting your own business and hiring employees. A well managed business allows you to earn income while you sleep. This form of leverage allows you to create more time by delegating to others who can do a more efficient job of certain tasks.
Leverage your job: utilize your employer’s benefits to compound your wealth (401k matching), benefit the community (matching donations), subsidize healthcare (flexible spending accounts), and/or increase your knowledge (tuition assistance).
Legislation: the U.S. Government has a plethora of laws to encourage investment in certain areas of the economy. These tax subsidies incentivize you to start a business, own a home, invest in real estate, save for retirement, and improve your education. Take advantage of these benefits to accelerate your financial success.
Knowledge of experts: Instead of paying thousands of dollars and countless hours of time to earn the expertise, why not spend pennies on the dollar to hire a specialist? Leverage the experience and knowledge of CPAs, REALTORS®, lawyers, and contractors to get the job done much more efficiently. This is also less expensive than undergoing years of study and thousands of dollars in student loan debt to acquire their skills and time-tested expertise.
Experience and wisdom of others: leverage the knowledge and expertise of and derive inspiration from other mentors through reading books and/or listening to audio books and podcasts. This follows the principle of learning from other people’s mistakes and gleaning from what made them successful. Some of my favorite, life-changing podcasts include TED talks, Dean Patino’s “Top 5 Percent Income” podcast, Matt Theriault’s “Do Over” podcast, Stephen Covey’s “7 Habits of Highly Successful People”, and Og Mandino’s book, “The Greatest Salesman in the World”.
These are but a few forms of leverage that I have utilized to achieve my personal success. Please provide some feedback on what forms of leverage have you used to create your success.
Monday, February 17, 2014
Use Leverage to Reach your Goals Faster
My last article talked about using Purpose, Passion, and Persistence to facilitate your success in life. Read more about that on my blog http://americandreamisalive.blogspot.com/. Continuing that theme, this article provides a powerful tool to assist in accomplishing those goals. This tool is the power of leverage; used properly, can allow a person to achieve more than he is capable of. Leverage used improperly, however, can also create setbacks so conduct your due diligence and learn from experts and mentors who are skilled in the use of leverage. The various kinds of leverage include:
Technology: you can leverage technology to better market your business (think YouTube, Facebook, LinkedIn, and Twitter), provide homework assistance (Tutor.com), improve your credit score (Credit Karma), or even help with your budget (Mint.com).
Social networks: properly leveraged social networks can topple corrupt governments. Facebook played a significant part in mobilizing the Arab Spring and toppling the Egyptian regime. Our local social network in the Filipino community in Arizona has raised thousands of dollars for Typhoon Haiyan disaster relief.
Other people’s money: also known as OPM can magnify what little resources or funds a person has and increase the growth potential of his investments. Buying investment real estate with borrowed money is a classic example of this; one can achieve growth, income, and tax deductions with the proper financing and strategy. Using leverage on losing investments, however, can increase your losses.
Equity Investments: Another excellent use of OPM is investing in the equity markets; which has generated the highest compounded return among all asset classes since its inception. Albert Einstein was quoted as saying that compound interest is one of the wonders of the world. Through compound interest, proper tax planning, disciplined investing, and risk-taking, one could have money working for them rather than working for their money. A small amount of money could be multiplied ten-fold by professional investment managers; all it takes is some delayed gratification and discipline to invest a portion of your income.
OPM for protection: OPM in the form of insurance can also be used to pool few resources together to protect against loss of life, valuables, income, and safeguard against other risks.
Other people: this form of leverage can be utilized by starting your own business and hiring employees. A well managed business allows you to earn income while you sleep. This form of leverage allows you to create more time by delegating to others who can do a more efficient job of certain tasks.
Leverage your job: utilize your employer’s benefits to compound your wealth (401k matching), benefit the community (matching donations), subsidize healthcare (flexible spending accounts), and/or increase your knowledge (tuition assistance).
Legislation: the U.S. Government has a plethora of laws to encourage investment in certain areas of the economy. These tax subsidies incentivize you to start a business, own a home, invest in real estate, save for retirement, and improve your education. Take advantage of these benefits to accelerate your financial success.
Knowledge of experts: Instead of paying thousands of dollars and countless hours of time to earn the expertise, why not spend pennies on the dollar to hire a specialist? Leverage the experience and knowledge of CPAs, REALTORS®, lawyers, and contractors to get the job done much more efficiently. This is also less expensive than undergoing years of study and thousands of dollars in student loan debt to acquire their skills and time-tested expertise.
Experience and wisdom of others: leverage the knowledge and expertise of and derive inspiration from other mentors through reading books and/or listening to audio books and podcasts. This follows the principle of learning from other people’s mistakes and gleaning from what made them successful. Some of my favorite, life-changing podcasts include TED talks, Dean Patino’s “Top 5 Percent Income” podcast, Matt Theriault’s “Do Over” podcast, Stephen Covey’s “7 Habits of Highly Successful People”, and Og Mandino’s book, “The Greatest Salesman in the World”.
These are but a few forms of leverage that I have utilized to achieve my personal success. Please provide some feedback on what forms of leverage have you used to create your success.
OPM for protection: OPM in the form of insurance can also be used to pool few resources together to protect against loss of life, valuables, income, and safeguard against other risks.
Other people: this form of leverage can be utilized by starting your own business and hiring employees. A well managed business allows you to earn income while you sleep. This form of leverage allows you to create more time by delegating to others who can do a more efficient job of certain tasks.
Leverage your job: utilize your employer’s benefits to compound your wealth (401k matching), benefit the community (matching donations), subsidize healthcare (flexible spending accounts), and/or increase your knowledge (tuition assistance).
Legislation: the U.S. Government has a plethora of laws to encourage investment in certain areas of the economy. These tax subsidies incentivize you to start a business, own a home, invest in real estate, save for retirement, and improve your education. Take advantage of these benefits to accelerate your financial success.
Knowledge of experts: Instead of paying thousands of dollars and countless hours of time to earn the expertise, why not spend pennies on the dollar to hire a specialist? Leverage the experience and knowledge of CPAs, REALTORS®, lawyers, and contractors to get the job done much more efficiently. This is also less expensive than undergoing years of study and thousands of dollars in student loan debt to acquire their skills and time-tested expertise.
Experience and wisdom of others: leverage the knowledge and expertise of and derive inspiration from other mentors through reading books and/or listening to audio books and podcasts. This follows the principle of learning from other people’s mistakes and gleaning from what made them successful. Some of my favorite, life-changing podcasts include TED talks, Dean Patino’s “Top 5 Percent Income” podcast, Matt Theriault’s “Do Over” podcast, Stephen Covey’s “7 Habits of Highly Successful People”, and Og Mandino’s book, “The Greatest Salesman in the World”.
These are but a few forms of leverage that I have utilized to achieve my personal success. Please provide some feedback on what forms of leverage have you used to create your success.
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