What Is Leverage and How Can You Use Leverage to Grow Your Personal Wealth
In the world of money, two words are very important. Cash flow and Leverage. In this hub, we only look at leverage. Another group of my hubs will be purely on cash flow. You may be wondering why I did this. Simple reason; when I cluster my hubs in one group and link them to each other, each one help each other in terms of Google Page Ranking. If you are the type of hubber who aims for organic traffic from search engines, then you will understand this strategy. I aim for passive daily cash flow here. Therefore, I use all the leverages that I can lay my hands on to earn more here daily.
“Success comes easy when you know what you are doing”
~Ian D. Hetri
What Is Leverage
What is leverage? I just said it; leverage is the reason why some Hubbers earn more here than others. Let me be very precise. It is the reason why some are successful online and others are still struggling without earning a single cent.
I guess you are thinking bit harder now. But that is not all, leverage is the reason why some people become so rich and some remain poor and broke. Leverage is the reason why some people enjoy happier, healthier, wealthier life and some people live in misery.
It is my personal business and investment philosophy to keep everything simple. If I don’t understand a business system or investment opportunity, I don’t waste my time. It’s the KISS principle I adopted from Robert Kiyosaki’s book Rich Dad Poor Dad. KISS simply means: “Keep It Simple Stupid”. Let me define leverage in the simplest way.
“Leverage is the ability to do more for greater result with less effort”
Look at the definition closely. Let me extract key words in the definition to help you grasp the definition in its very simplest form yet with greater insights into what I am trying to say.
Key words: Ability/More/Result/Effort
- Ability is to do with your physical, mental and emotional capability
- More is the measure of your ability to get things done.
- Result is what you get after using your abilities
- Effort is simply your strength in getting things done.
When you put ability, more, result and effort together, you get leverage. Note that you haven’t reached the end yet. What you have now is a tool to help you achieve more with less effort.
It is at this point when success and failure in life is determined. It is at this point that those with information create fortune and those that ignore information or knowledge and run with the wind in search for get rich quick or quick fix schemes end up losing all they have. Even some of the smartest people I know are still living their heads off. I take my hat off for them. The society needs hardworking, smart, committed workers. The saddest fact is, one can work hard, stay committed and being loyal but end up retiring broke, poor, frustrated, sick and ashamed. Why is that? I simply call it IGNORANCE to reality. What reality? Well! Start here with the reality of leverage and how you can use that to get more result with less effort.
Case Study: Using Leverages to earn more in Hubpages
Can you apply leverage in Hubpages? The answer is of course. You may be saying “So how the heck do I use leverage and earn more in Hubpages? Can we use the KISS principle? Right. My simple answer is; get yourself educated. I don’t mean just read. If you are serious to earn, then STUDY Hubpages. When you read, what do you do? When you study, what do you do?
When was the last time you read the Hubpages HELP SECTION? When was the last time you made an effort to contact the highly paid Hubbers here?
If you are here to make money like I do, stop now and study Hubpages before you waste a lot of your time and effort. When you have that knowledge about Hubpages, you have the leverage over others. Now that I have used Hubpages to illustrate the power of leverage, I now wish to take you out of Hubpages and into the world of business and investment the powerful world of wealth creation.
How Can You Use Leverage To Grow Wealth
Leverage of your mind
All man have being created equal despite, race, color and language. The only thing that makes all man equal is the MIND. Every normal man and woman living on earth has a thinking mind, right! Correct. Except for mentally retarded people, every man has a wonderfully made, full of potential, million dollar ideas in the mind. Every man and woman has equal capacity to become rich financially, and in health and in relationships. What than make others become wealthy, healthy and happy is the ability of individuals to use leverage of the mind.
Napoleon Hills classic self-help book of all time, Think and Grow Rich said it all. The book has what I call “A Success Quotient”. The book brings together minds of over 5000 wealthy and powerful people that Dale Carnegie, the steel magnate, commissioned Napoleon Hill to write. This is one book, every millionaires and billionaire I read about said they read this book. So if you want to be wealthy, why not read it. You have nothing to lose but more to gain.
When I share this in my business seminars, I sometimes receive some funny looks. Being wealthy begins, not in the diamond minds in Africa, nor the oil rings in Arab. Not even in the banks, nor the business one owns or the investment one makes. Wealth begins in the mind. I can go on and write a book here but then I make you lazy. So I suggest you start with the three books that changed my whole life.
Think and Grow Rich
Think and Grow Rich
Order Rich Dad Poor Dad here
Rich Dad Poor Dad
7 Habits of Highly Effective People
Order The 7 Habits of Highly Effective People here
Even after reading these three books, but you still lack the fire and passion to propel you forward, than read Maximize Your Personal Confidence and Motivation For Success by Ian D. Hetri, the author of this hub.
All these four books can be cheaply and easily downloaded in kindle edition from Amazon.com.
I am telling you; make it your business to read these books. Why? Let’s keep to the KISS principle. The more information or knowledge you have, you have the leverage to get in and strike bigger deals, make more money and move out before rest of the world move in. Isn’t that leverage? Answer is; of course. In the next section, you will find just what I meant when I tell you to get yourself educated first: The leverage of knowledge.
Leverage of Knowledge
Everyone has a mind. So why aren’t everyone wealthy? If you are serious in growing your personal wealth! STOP HERE !..............................
Go back and order the four books listed under the Leverage of The Mind section.
Dr. Myles Munroe, a multi-millionaire, international best-selling author, speaker and pastor asked “why should you go to a pastor to pray for you when you having financial or marriage problems...And he answered himself “You should rather get yourself educated on why your finance or marriage is breaking apart”. He continued “Read a good book, watch a success DVD and even attend a seminar or a register for class to get yourself educated on the areas you are failing”…Without doing these, don’t go begging the Lord to do what you are supposed to do yourself. The ancient scrip says “Lord helps those who help themselves”…
So are you gonna be ignorant end up being stupid, broke, poor and ashamed because of you ignorance to knowledge or are you gonna grab the opportunity to educate yourself first? You have a mind to choose. And that is leverage number one. A mind can’t get to work unless you command it by using power of auto suggestions as described perfectly by Dr. Joseph Murphy in his best-selling book; The Power of your Sub-Conscious Mind.
Order Retire Young Retire Rich here
If you decide to grow your wealth, then the second thing you need is knowledge of wealth creation. You need to master the Laws and the Principles that govern success. Many of my seminar attendees ask me for the very specific knowledge that would make them rich. I say to them, that is foolish thinking and its Ignorance at its best. Dr. Myles Munroe calls that stupidity. Robert Kiyosaki described it as ‘get rich quick scheme in book Retire Young Retire Rich, a book I could never stop reading. A book that formed the foundation for this hub. Order the book here.
I know after coming this far, you realized that you need more than this hub. You need a whole book on the subject or even more books. The subject of wealth creation is complex and we can’t not cover everything in one sitting.
Simple basic wealth creation knowledge
My business and investment philosophy in one word is Simplicity. So I am going to tell you simple knowledge that changes my young, unfocused, demotivated life into a life full of fire, passion, drive, energy and vitality and success. Can you say this is another leverage I have over my friends whom we graduated together with college degrees but are still stuck to paycheck? Answer is of course. Now that I have these knowledge, used it, seen results, I again sell this knowledge in my business seminars. Isn't this leverage? Answer is of course.
Lesson # 1: Know the difference between an asset and liability and only buy assets.
Once I got that from Robert Kiyosaki’s book Rich Dad Poor Dad…BANNNG!! My life went on fire and motion. An asset brings money into your pocket and a liability takes money out of your pocket. Simple as that. What are you buying? Asset or a liability? We have assets and liabilities in business, investment health and in relationships.
What assets can you buy? Let me show you the way to go
- Real Estate
Is it simple? No. Can it be done? Yes. Has it been done before? Yes. Can anyone do it? It depends.
I say it depends because only few will use the leverage of the mind and leverage of knowledge. Rest will wind up being ignorant and I say “That is ok”. If you choose ignorance, than that is the leverage you have someone who uses the leverage of the mind and knowledge. The result always boils down to you either asking for two things from the person who uses the leverage of the mind and knowledge and of course leverage of action as you will soon find out.
- First thing asked for is a JOB
- Second thing asked for is a LOAN
Leverage of Action
Few friends and I were discussing on a book we all read. The book by Robert Kiyosaki titled Rich Dad Poor Dad. My other friend said he watched the Cash Flow Quadrant video and my other friend said she had read the whole book Rich Dad Poor Dad and said she learnt a lot from reading. So I asked my friend, what is one thing about those lessons that you practically went out and implemented it? I guess she felt a bit offended. She had all the knowledge but lacked the leverage of action.
Does this scenario sound similar your situation? Over 10 years of studying success, I have come to meet so many people who know so much than me. You want to know what keeps them living average lives. Answer is LACK OF ACTION.
Many people ask the question “Why are rich getting so rich and poor getting so poor everything day” but don’t take time to consider who takes action and who doesn’t.
The rich are rich simply because they take action. They know it’s the action that yields result. They don’t sit around and wait for things to happen to them. If they don’t find opportunities, they create it as someone wise once remarked.
This is another leverage, the successful people have over those that are unsuccessful. I teach goal settings in my seminars. But goals without plans are fantasy. Goals without plans to achieve those goals lead to success.
Leverage is the ability to do more for greater result with less effort. The more leverage you know and use them, the more easier your life becomes and you are destine to achieve greater things in life. I have shown you few leverages in life that anyone can use. Take it upon yourself to learn and above all, DO it.
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© 2013 Ian D Hetri