What is leverage?

Leverage is very important to someone seeking to become financially free. It is the sole reason why many people are able to rise above others financially. Understanding and applying leverage can make you 10 times richer than you are now.

So what is it? Let me give you an example. Suppose you want to move a bolder. This is a big bolder and no matter how hard you push you will never be able to move it. You push and push but it just stays there.

Finally you decide that this is getting you nowhere. You go out and find a nice big log. You one end of the log under the bolder and have the other sticking up. You pull down on the side that is sticking up. Suddenly the rock moves. You accomplished your goal by using that log as a lever.

Well, that’s all fine and dandy, but how do I apply it to the real world? So glad you asked. In our example Leverage was obtained by adding a log in to help us move the bolder easier. This idea of adding things in to make it easier appears in everything that makes people rich. In the stock market it is options, in real estate it is the ability to borrow money, in business it is the ability to pay other to do your work for you. It’s everywhere.

Those who learn to use it become richer and richer with less and less work, while those who don’t become poorer and poorer while doing more and more work.

Now that you understand leverage you will began to see it in every aspect of life. Not just investing in the stock market. You can find an easier way to do just about anything. Remember it is not taking the easy way out if you get more done. Don’t make thing harder then they need to be.

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