My Favourite Thoughts About Leverage
As many of you know I have a massive collection of thoughts and ideas collected on my iPhone from the financial education I have received over the years. I have over 1400 “NOTES” to reference from. It has become an amazing library of information.
Here is a collection of some of my favourite thoughts on leverage!
Cash flow is the most important term in the world of money. The second most important is leverage. Leverage is the reason some people become rich, and others do not. Leverage is power that can work in your favour or against you.
The word leverage simply means the ability to do more with less.
If you have money sitting in a bank in your savings account or retirement account, then your money is someone else’s leverage. They use your leverage for themselves to get wealthy.
If you’re working hard physically and not getting ahead financially, then you are probably someone else’s leverage.
People without leverage work for those people who have leverage.
Most financial planners put people into investments where they have no control; they should not use leverage. Using leverage to invest in something you do not control would be like buying a car without a steering wheel and then stomping on the gas pedal.
The key to leverage is control, and the key to control is financial intelligence.
Focus, not diversification, is the key to more sophisticated leverage, higher returns, and lower risk.
Leverage can increase rate of returns dramatically. It has the potential to create infinite returns on investments.
Never use debt that won’t make you money. Rich people use debt to leverage investments and grow cash flow. Poor people use debt to buy things that make rich people richer.
To get ahead you must be heavily leveraged in good debt. The key is to have the right kind of debt. If you use debt to earn income then you are on the right track.
The ultimate goal for the super-wealthy is to never invest with their own money. They are masters of leverage in raising capital.
If an investor lacks the financial intelligence to control the investment the use of leverage is very risky
Using Leverage without financial education is the recipe for disaster.
Kind Regards,
John Heeney
Glenroe Lending
“We build LEGACY to create TRANQUILITY”
john@glenroelending.ca
519 808 7370
