How Wealthy People Use Power of Leverage to Grow More Wealth
Symbol of Wealth
Rich get richer because they use the power of Leverage. Poor get poorer because they use power of Leverage. In my study of rich and successful people over the decade, I have come to find something that the rich do that the poor don’t. And as I introduced in my blog, Leverage is doing more, getting better results with less effort. I borrowed and modified the definition of leverage from Robert Kiyosaki’s book Retire Young Retire Rich. You will see that once a person starts to get rich, he continues to get even richer. Most people never ask how?
Take for instance, in a street where I used to live before, there were two printing companies. Neither one of them was better than the other. I assume their finances were quit touch looking at out ward appearance of the business. They both operated in an almost run down building. They staff drove around in old used cards. That was back in 2004. In early 2008, I went to see an old friend in that street and guess what I saw? A multi-million dollar building and obviously, that company out played its competitor million times. The one? Still the same. The first thing I did when I got back home was to check their online activities. AND BANG! I got the answer. They have a massive online presence and from the way they conducted themselves online, I could see they captured the huge growing online market of print materials.
That is using the power of leverage. Being online may have cost them some money initially. But took calculated risks and invested for long term benefit. The other company feared to take step and to go to where the high business volume is. That’s. The result spoke well.
You may also wish to know how to create your own reality with your thoughts. Read here.
Common Leverages Rich Use To Gain and Poor use to Loss
There are three common leverages that the rich use effectively that the poor abuse effectively and that result in rich getting richer and poor getting poorer. I have written a hub on how rich think and how poor think and that creates their reality. Read it here.
· The rich use Leverage of Mind
· Leverage of Technology
· Leverage of Networks
Rich use Leverage of Technology & Poor Don't
I have written a great deal in my coming book Write Your Way to Fame, Wealth and Legacy about how the best selling authors use the power of leverages. One obvious leverage the rich people use is the leverage of technology.
Technology has made instant millionaires and billionaires in the 2sst century. The rich serve large number of people using technology to their advantage. Yes. Its does require knowledge and skills to do so but the rich invest on education. Somethings the poor don't. The rich learn from those who have done it and not from those who only preach. Robert Kiyosaki said "If you want to be rich and happy. don't go to school"...
Robert was meaning to say, if you really want to be rich, learn from those who actually have become rich....
Poor people accept anything that is thrown to them and think that is life. Some poor people even believe that the end of life. So it becomes.
I sit see friends who go online waste thousands and some even millions of words that they could have turned to cash...But every click you make online makes someone rich somewhere.Let me tell you what happens. When you let your mind to go to sleep, someone, somewhere in the world uses you as his or her leverage to become so rich.
Rich use Leverage of the Mind & Poor Don't
One of the proven method is which the rich get richer and poor get poor is in the way they think. What you think is what you become. That is what Dr. Napoleon Hill said in his book Think and Grow Rich. The richer become rich because they think Rich. The poor become poor because they think poor as Harv. Eker said in his book Secrets of Millionaire Mind.
We are all blessed with a mind. How each of us use our minds determines who we become.
Mind is just about the most powerful tool human has been blessed with. You think up thoughts according to what happens to your life daily since birth until the time you are reading this hub. This thoughts create your belief system that determines your attitudes which determine your characters...Your character tells others about you..The Real YOU.
I wrote in my book Maximize Personal Confidence and Motivation for Success that you have to realize what thoughts add value to your life and entertain those thoughts. Not negative, self-defeating thoughts that pull you right down.
The rich become and stay richer because they have come to realize the power of the leverage of human mind. The poor don't know if such things as leverage exists.
Result speaks of itself.
Rich use the Leverage of Network and Poor Don't
I learnt this from reading Har. Eker's book Secret of Millionaire Mind and Napoleon Hill's book Think and Grow Rich. The secret formula of the rich as they both said is "The bigger the number of people you serve, the richer you become".
Over the years, I have come to realize that very successful companies like Ford, General Motors, McDonalds are huge networks. Even Powerful communications companies like CNN and ABC.
I have been with Proma, a multilevel marketing company for some time and have studied how the founder Val Filter built this multi-million corporation from nothing to one of the best in the world. Network is what he used.
Rich people study and discover where the established networks are and tap into those networks or create systems that builds new networks.
Poor people play the game not to loss. Poor people play it for security and fear using leverages. The rich and financially literate people play to win and use any leverage that can grab to make their climb to success easier.
Rich use Leverage of finance and Poor don't
This should be very simple to understand. The banks use our money to invest and become more richer than us. It is our money. Not theirs. Rich people know that there is such thing as good debt though its not return. This is the money they get as loan from the banks and invest in high yielding assets such as real estate or shares.
Say a professional investor wants to buy a residential property at $100, 000. With a down payment of say $20, 000, he gets a loan of $80, 000 and the buys the property.
There are legal and financial laws that governs all this so please take time to educate yourself.
Let me repeat, the rich educate themselves and so become successful. Poor people seem to know it all and so remain poor.
Leverage is the ability to do more with less effort. The rich and famous over the years have use the power of leverage to rise to greater heights. Not just rich and poor use leverage. Just about any body can use leverage to succeed if the they understand the power of leverage.
Hope you learn something useful in this hub. More on my coming book Write Your Way to Fame, Wealth and Legacy.
Happy learning and getting rich.