At the beginning of this Retire YOUNG; Retire RICH training series, we informed you that the most important word in the world of money is ‘cashflow’ (Go back to the first training titled ‘Why David Met Goliath’ to know why)
The second most important word is what we will be treating today. That word is ‘Leverage’. Never forget that David was able to defeat the giant Goliath because David understood the power of ‘Leverage’. Once you understand the power of leverage you will start seeing it everywhere you turn. If you ever want to be rich then you must learn to harness the power of ‘Leverage’. Note that even if you are just a ‘start up’, you can beat the big guys if you understand the power of leverage.
To become rich you must use some form of leverage. The difference between the rich, the poor and the middle class is the different forms of leverage each class uses. The rich are therefore richer simply because they use different forms of leverage and they use more of it.
One very popular form of leverage is ‘Financial Leverage’. This Leverage is usually the advantage the rich have over the middle class and the poor. Financial Leverage is how the rich get richer quicker, the simple explanation here is that ‘most opportunities involving finances are usually taken by those who have the funds to finance them’, we will be dwelling longer on leverage because for you to retire young and rich you will need to use some form of leverage.
Leverage of Education
One of the main reasons the middle class and the poor work harder, work years longer and struggle to pay off debt is because of a very important form of leverage and that is the leverage of Financial education.
Just so you know that the next time you desire to start a business, invest your funds or purchase asset (Tangible or Intangible) and you have not gotten financial education, then the invested amount has extremely low chances of surviving in the first seven years. Several opportunities are made available to the youths daily but only about three percent of these youths have the financial leverage to take advantage of them so we will first be looking at other forms of Leverage available to the remaining ninety seven percent that do not have financial leverage to take control of opportunities.