Entrepreneurial Mindset, Financial Education, Inspired Living, Online business, Personal Finance, Productivity

The Power of Leveraging (how TO 10X Your WEALTH & FREEDOM NOW)

In this blog post, we will discuss The Power of Leveraging and how YOU can 10X your wealth and your freedom.

We will discuss the different forms of leveraging, how I have been applying leveraging in my life to 10X my time freedom and wealth. Plus, more importantly, what can YOU do to increase leverage in your business and your life.

What Is Leveraging?

If you look up the word “leverage” in a dictionary, it will probably tell you something like this…

“The action of a lever, a rigid bar that pivots about one point and that is used to move an object at a second point by a force applied at a third.”

Confused?

You may be wondering then what does “leverage” have to do with time freedom and building wealth?

Well, let me give you another definition that is simpler to understand…

“Leverage” is the action in which you can get more done with less.

And yes, like Robert Kiyosaki, the author of the # 1 Personal Finance book Rich Dad Poor Dad, has said, “Leverage” is the reason some people become rich and others do not.”

To me, leveraging is not only about building wealth, but more importantly, it is about creating time freedom.

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Different Forms of Leveraging

How well we learn to leverage will dictate how much time freedom and wealth we can have in our lives.

4 Main Forms of Leveraging

There are 4 main forms of leveraging:

Other People’s Time (OPT)
Other People’s Money (OPM)
Other People’s Knowledge (OPK)
Systems (including technologies)

Now, before you hate me and start thinking that leverage is EVIL (you mean I have to use other people?!), I promise you that as you read along, you will discover that leverage is not only good for you.

In fact, you may have already been doing it every day and in many different ways.

In most cases, leveraging creates a win-win and is beneficial for all parties involved!

An Employee has Little or No Leverage

You may not realize this, but if you are in a job today, your employer is leveraging on you.

Your employer is giving you a paycheck so that he can leverage your time (Other People’s Time) and he can get more done with less of his own time.

Nothing wrong with that, most people have a job and the Society does need people to contribute in many different ways.

My point here is just to help you realize that leverage is indeed used every day, everywhere.

Time is the Most Valuable Resource

Now, as an employee, more often than not, you don’t have any leverage. If you do, you have very little.

You will need to be trading your own time day in and day out in exchange for a paycheck.

Even if you are a manager and have a team you are supervising, chances are that you still need to be in the office or work for certain hours a month to maintain your salary.

Time is the most valuable resource in the World.

If you lose your money, you can always make it back. But if you lose your time, you can never make it back. Period.

So I cherish time – I want to spend my time doing things I love and with the people I care about.

I would rather earn 1% off 100 people's efforts than 100% of my own efforts.

John D. Rockefeller American Businessman And Philanthropist

If you are working in a job today AND you agree that time is the most valuable resource you have, then you may realize that being an Employee with little or no leverage is probably not such a smart thing to do.

If that is the case, then you may want to start looking for ways you can leverage so that you can have more time freedom back in your life (examples below…).

But… I am Self-Employed?!

If you are self-employed – such as a real estate agent, an insurance agent, a doctor who runs her own clinic, a lawyer with her own practice, an accountant with her own firm, or a small business owner, you often have even less leverage than a regular employee.

In most cases, you are the one handling every aspect of your business – defining business directions, business development, meeting with clients, closing sales, handling logistics, delivering products, doing marketing, handling bookkeeping just to name a few.

Chances are that you are working even longer hours than a regular employee. Not only that, your income stops when you stop work and you don’t even have paid vacation days.

(Suggested reading – also check out Robert Kiyosaki’s Cashflow Quadrant concept.)

So, if you found that you are in this situation – again, perhaps it is time to start looking for ways you can leverage more so that you can have more time freedom back in your life (examples below…).

Real Life Examples

If you look around and pay attention, you will find that examples of leveraging are indeed everywhere. The only thing is whether or not you recognize its usage and if you are using it too. Now, let us take a look at some real-life examples.

(1) Leveraging with Other People’s Time (OPT)

Below are some examples of leveraging Other People’s Time (OPT), do you recognize them? And are you using any of them?

Real estate broker Sandy recruited a real estate agent Lin and provided her with training and support. In return, Sandy gets a percentage of what Lin produces.
A business owner pays a salary to hire a staff, and in return, leverage on the staff’s time.
A financial planner recruits team members and provides them with training and support. In return, get a percentage of what her team produces every month.
Jennifer hires a cleaner so she can spend less time cleaning on the weekends and spend more quality time with her children.
A couple hires a wedding planner to arrange their wedding, so they can spend less time stressing out about the details of their wedding arrangements.
Business owner Sammy in Canada hires a virtual assistant overseas so that things can get done while she sleeps at night.
A couple hires a baby sitter to look after their children one night a week, so they can go on a date night.

As you review these examples, I am sure you begin to understand that leverage does make sense and it is used everywhere.

Like I said earlier, leverage is the action of getting more done with less and in return, all parties benefit.

(2) Leveraging with Other People’s Money (OPM)

Below are some examples of leveraging Other People’s Money (OPM), do you recognize them? Are you using any OPM method?

Getting a mortgage from a bank in order to buy a house. In return, you agree to pay a certain interest to the bank over 30 years.
Raising funds from investors such that a business idea can be executed. In return, the investors receive a percentage of the profits.
Your parents lending you money such that you can finally put a downpayment to purchase your first home.
Raising funds from investors such that a development project and buildings can be completed.
A sophisticated investor receives a loan from a bank to purchase an apartment complex.
A sophisticated stock trader borrows money from a broker to do margin trading.

Assets and Liabilities

When it comes to investing, the ability to leverage on Other People’s Money (OPM) can help you to accelerate your goals.

However, be sure to understand the difference between an Asset and a Liability and that you have the financial knowledge to invest properly.

Assets put money into your pocket. Liabilities take money out of your pocket.

If you have a personal balance sheet (you should!), your Net Worth is the difference between your Assets and your Liabilities.

(3) Leveraging with Other People’s Knowledge (OPK)

Business and investing are team sports.

Robert Kiyosakid

Best-Selling Author of Rich Dad Poor Dad

As Robert Kiyosaki has said, “Business and investing are team sports.” It is impossible for us to learn everything in the World, so it is important to leverage on the right individuals and build the right team.

Below are some examples of using leveraging Other People’s Knowledge (OPK), do you recognize them? And are you applying to any of these?

Having a great attorney, accountant, real estate agent and tax advisor on your team when you start investing in real estates.
Getting coached by a mentor who has achieved what you want so you can learn from her experience and accelerate your success.
Consulting a specialized doctor to cure certain illnesses.
Taking a value investing class from an experienced mentor so that you can learn from to invest in the stock market properly.
Building your network marketing business by following a successful upline leader who has done what you want to achieve.
Reading books on the topics you want to understand more on.
Participating in a mastermind group so that you can network and learn from people who are successful and have similar goals.
Taking an online course to learn about how to do affiliate marketing properly.
Listening to Podcast and watching YouTube videos to learn about the latest techniques in online marketing

In fact, the fastest way to learn is to follow someone’s experience and knowledge, you can drastically cut down your learning curve and achieve your dreams much sooner.

(4) Leveraging on Systems (including Technologies)

We are now in the information age.

Whether we like it or not, we have to admit that the internet is very powerful. It is connecting people, sharing information at the speed of light, and creating many new millionaires each year.

Below are some examples of Leveraging on Systems (including technologies).

Tom is a business owner. He purchased a McDonald’s franchise so that the restaurant’s system and branding is already in place.
A stay-at-home mom started a blog about gardening and turning it into a full-time income from the comfort of her own home.
Donna sets up auto-payment for all her bills so that her bills are always paid on time, automatically, every single month
An online store reaching customers worldwide 24/7, 365 days a year.
A person with no prior business experience creating a full-time income in network marketing by following its proven system.
Professor Susan shares her knowledge to hundreds of students around the World at the same time using webinars.
An internet marketer set up an online campaign and able to travel the World for 1 month while her business continues to grow.

As you read through these examples, I believe you will begin to understand why successful and rich people leverage to create more time freedom and wealth.

It is about delivering more value, working smarter and creating win-win relationships.

MY PERSONAL EXPERIENCE

Over the years, as I learned more about the Power of Leveraging, I have certainly become more open to applying leveraging in my business and in my life.

Below are just a few examples of how I have successfully applied leverage in my personal life and in my business – there are many more examples of course.

Other People’s Time (OPT)

Hiring a Helper

When I started my first business in the Year 2011, my daughter Angeline was only about 1 year old then, and I was really busy with parenting and with building my new business.

Because at the time I was staying in Singapore, hiring a domestic helper was really affordable and simple.

Having my domestic helper really helped me a lot – she took care of all the household duties. So that I have time to devote to my business. Plus, when I spend time with my daughter, it was all quality time.

This little move was instrumental in giving me more time to work on things that move me forward in my dreams.

Now, perhaps you may not be living in an area where a domestic helper is affordable. If so, learn the art of ASKING! Don’t be shy to ask for help from your partner/spouse/family/neighbors/friends – we are NOT superwomen, and we don’t need to be.

Consider using what I called the kids’ swap – get to know other Mompreneurs in your neighbor or parents of your kid’s classmates, so that you and she can take turns to arrange a playday for the children, giving you mommies more personal time to work on your business.

Other People’s Money (OPM)

Getting a Loan/Mortgage

There are tons of personal finance books out there that advocate against borrowing money (Dave Ramsey is one of them).

However, personally, I believe that borrowing money, or leveraging other people’s money (OPM), is totally fine as long as you are disciplined, and you know what you are doing.

In fact, most millionaires and billionaires in the world borrow lots of money!

Be sure you know the difference between an Asset and Liability. Only use Other People’s Money to invest in an Asset. Know your numbers, be disciplined, and always manage your risks.

Purchasing My Real Estate Properties

Thanks to leveraging on my banks and financial institutes’ money, I managed to get mortgages such that I could invest and grow my real estate portfolio.

I absolutely LOVE real estate. And over the years, my real estate portfolio has grown healthily, while earning me rental incomes every single month.

Other People’s Knowledge (OPK) – PART 1

Hiring My Accountant
One of the first things I did when my business started growing was to hire an accountant. He was a referral by a trusted entrepreneur friend.

And over the years, I have been really happy with my accountant’s service.

Not only does my accountant save me a lot of headaches when it comes to handling the financial records and tax reporting for my company, but he has also saved me TONS of taxes over the years – all done legally, of course.

Did you know that TAXES is one of the biggest expenses you will have? And this is true on your personal income tax and your business tax.

So be sure to find yourself a knowledgeable, experienced, and responsible accountant if you run a business.

Chances are you will be using the same accountant for years to come. So be sure to ask around for referrals, and interview a few candidates before deciding on one.

Other People’s Knowledge (OPK) – PART 2

Learning, learning, learning

I LOVE learning. Learning literally makes me feel happy!

So over the years, I have kept up with my student mode. These includes:

Reading books (borrow them from your local library or buy your kindle books from Amazon!)
Listening to Podcasts
Watching YouTube Videos
Reading blogs (such as mine)
Buying online courses (from Udemy, and Skillshare)

Of all your investments, investing in your mind and your own education will give you the BEST return!

When you learn and apply what you’ve learned, you will reap your returns!

Over the years, because of my consistent learning, I have created this blog, my Podcast, my YouTube Channel, my international bestselling book Mind and Money Makeover, my online courses, built my online business, and established multiple passive income streams.

LEVERAGE ON SYSTEMS (INCLUDING TECHNOLOGIES)

My Digital Assets

I love using technology because it helps me to share my message and knowledge and to reach out to more audience around the world, 24/7, all on autopilot. I LOVE autopilot!

Website/Blog: I created my website/site with my favorite hosting company and WordPress. If you are interested in creating your own website/blog and start profiting from it, check out my FREE Step-by-Step Guide on creating your website/blog in 30 minutes.
eBook: I wrote my own eBooks and sell them on Amazon Marketplace.
Online courses: My online courses Perfect Niche Formula and Small Product LaunchKit are hosted on Teachable (you can check out all my online courses HERE). I love using Teachable, the user interface looks beautiful, it is easy to set up, and there are tons of resources to help you get started too.

READY TO FAST TRACK YOUR FINANCIAL FREEDOM?

Including 31 proven strategies.

I hope this blog post has helped you to understand the power of leveraging and be more open to start leveraging more.

By using the power of leveraging, you can 10X your wealth and achieve time freedom much faster.

The Power of Leveraging (how TO 10X Your WEALTH & FREEDOM NOW)