Tuesday, June 06, 2006
So You Want to be Rich?
It seems everywhere you turn lately somebody’s got a plan to make you Rich. People seem to think money will take away their problems. Truthfully, it will not, but if money problems are keeping you up at night then something must be done. As the saying goes “Whatever you’re doing isn’t working”.
Let’s look at a big reason why some people become rich and most don’t.
Have you ever wondered why some people seem to get ahead so easily, while other struggle? Why do some people work so hard, but have so little to show for it? One of the big reasons is Leverage.
So what is Leverage?
When it comes to making a buck, leverage has to do with getting more out than you put in. It’s usually from using other people’s time or borrowing other people’s money. You can leverage someone’s money and make a good investment. You can sell a big job, pay someone else to do the work and keep the profit.
Without leverage you simply can’t get rich because there are only 168 hours in a week. Many people only know how to work more hours. Take a doctor for example; we’ll call him Dr. Bob. Perhaps Dr. Bob can charge $150 per hour for his time. He could make $25,000 per week if he worked every single hour, which of course is entirely impossible. But you get the point.
Hourly workers get stuck in another pinch. You end up trading time for money. Dr. Bob might have money, but he doesn’t have any free time. He’s money rich and time broke. We really want both don’t we?
Dr. Bob could hire three junior Doctors and pay them $100 per hour. He could keep the other $50 per hour for himself. Effectively he earns the same $150 per hour for doing nothing. Of course it’s not that easy, but you can see how leverage could let Dr. Bob enjoy the summer on his new Yacht. What would happen if he had five junior doctors working for him? How about 20 or 100?
If you want to get rich you need to think this way. This is a natural law just like gravity. When you drop a ball it always falls down, it never falls up!
To you, leveraged income should be worth 10 times more than hourly income even if it’s only a few dollars a month to start with. Why? Because you can grow a few dollars into empire by using more leverage. It gets even better because as your leveraged income grows you get more free time. That’s something Dr. Bob will never have!
Read Part Two
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Let’s look at a big reason why some people become rich and most don’t.
Have you ever wondered why some people seem to get ahead so easily, while other struggle? Why do some people work so hard, but have so little to show for it? One of the big reasons is Leverage.
So what is Leverage?
When it comes to making a buck, leverage has to do with getting more out than you put in. It’s usually from using other people’s time or borrowing other people’s money. You can leverage someone’s money and make a good investment. You can sell a big job, pay someone else to do the work and keep the profit.
Without leverage you simply can’t get rich because there are only 168 hours in a week. Many people only know how to work more hours. Take a doctor for example; we’ll call him Dr. Bob. Perhaps Dr. Bob can charge $150 per hour for his time. He could make $25,000 per week if he worked every single hour, which of course is entirely impossible. But you get the point.
Hourly workers get stuck in another pinch. You end up trading time for money. Dr. Bob might have money, but he doesn’t have any free time. He’s money rich and time broke. We really want both don’t we?
Dr. Bob could hire three junior Doctors and pay them $100 per hour. He could keep the other $50 per hour for himself. Effectively he earns the same $150 per hour for doing nothing. Of course it’s not that easy, but you can see how leverage could let Dr. Bob enjoy the summer on his new Yacht. What would happen if he had five junior doctors working for him? How about 20 or 100?
If you want to get rich you need to think this way. This is a natural law just like gravity. When you drop a ball it always falls down, it never falls up!
To you, leveraged income should be worth 10 times more than hourly income even if it’s only a few dollars a month to start with. Why? Because you can grow a few dollars into empire by using more leverage. It gets even better because as your leveraged income grows you get more free time. That’s something Dr. Bob will never have!
Read Part Two
If you enjoyed this article Subscribe to my RSS Feed
Bookmark this page on del.icio.us
# posted by Bryan C. Fleming @ 7:40 AM 
