4 Ways to Use Leverage Benefits to Build Your Wealth


Have you ever wondered why it’s easier for people who have money to make more of it? lose saving

I mean, why is it that the second and the third million are so much easier to earn than the first million?

Do you want to know what the biggest difference is between how wealthy people build wealth and how the poor and middle-income people do it?

It’s how they use leverage and I’m not just talking about borrowing money.

There are at least 4 ways successful investors use leverage.

Let’s look at them…

1. Money

Firstly there is the leverage that you probably first thought of. 

One of the biggest differences between how wealthy people and the average Australian go about building wealth isn’t how they invest the money that they have… it’s how they leverage and use the money they don’t have that makes them wealthy.

You see…the average Australian rarely uses leverage in any focused or strategic way, partly because they are afraid of taking on debt.

If they do build any wealth, they do it mostly by scrimping and saving the money they have, and using any “leftover” income to slowly build their “nest egg.”

On the other hand, wealthy investor has mastered the art of using money that they don’t have, to build their wealth.

They use borrowed money to magnify their investment activities and enjoy enhanced accelerated returns.

They take on more debt and borrow, gear, or leverage their assets to own even more assets.

Yet the average Australian is frightened of taking on more debt. financial-debt

In fact, many believe they must reduce their debt and pay off their home before they start looking at investing.

This is a huge difference in mindset.

When you have a more sophisticated understanding of the rules of using leverage benefits, you are able to literally use it to take your wealth-building to the next level.

When I look at an investment, I don’t ask myself, “Can I afford this property?”

Instead, I ask myself, “How can I strategically use leverage to help pay for this investment in a way that enhances my overall return without taking on more risk?”

Leverage, the ability to generate a magnified result from a specific asset, is normally thought of as “borrowing” money.

Yet this is only one of the ways you can use leverage benefits to build your wealth.

2. Relationships

You can also leverage your relationships or your network.

Successful investors build a great team around them.   Action 2277292 1920

They realise they don’t have to be an expert in every field if they develop a good network.

This network includes a good finance broker, a smart solicitor, a property-savvy accountant, and a knowledgeable property strategist.

Successful investors also have one or two mentors and they belong to a mastermind group.

This is a group of like-minded people who encourage each other and act as “unreasonable friends” helping each other push forward towards their individual goals.


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