The Importance of Leverage

"I WOULD PREFER TO EARN 1% OFF THE EFFORTS OF 100 INDIVIDUALS,
RATHER THAN 100% OF MY OWN EFFORTS."
~ John Paul Getty ~


If you can fully comprehend the quote provided above, then you should either already be wealthy, or on your way to achieving your wealth.

WHAT IS LEVERAGE?  The financial definition of leverage is as follows:
  • The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.

Basically, using borrowed funds to establish residual income and/or increase cash flow.

Once you are in the process of leveraging your time as well as your credit, then you are definitely following some major wealth principles, and well on your way to achieving financial success.
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