Leverage is basically doing more with less. Total Money Magnetism Review The more leverage you have the more you can do with less. For example, if I have $10,000 and I just invest my own money and earn 10% per year then I will earn $1,000, but if I leverage my $10,000 by using someone else's money and I can earn 10% on $100,000 then I can earn $10,000 per year or 100% return on investment. If I use none of my own money then the leverage is even greater and the return on investment is infinite.
In order to become rich you need to master the art of leverage. There are 3 major forms of leverage that you should learn how to utilize if you want to become richer and richer, instead of poorer and poorer. The less leverage you use to longer it will take you to become wealthy. I am not saying that you cannot become rich without using leverage, I just know it is easier to get rich by using leverage. If it wasn't for leverage I would have little or no chance to become rich.
This is one of the simplest and best forms of leverage. Everyone knows of this form of leverage because everyone knows about buying a house using the banks money. You are leveraging the banks money in order to be able to purchase a property. In order for the privilege to use their money you pay them interest on their money. This can be very expensive if you are trying to pay off your own house, but if you leverage the banks money and someone pays the interest for you (through renting the property from you) then they are ultimately buying your asset for you.
