To create wealth you have maximize the power of leverage. There are three accelerators that can help you fast track your endeavor.
Acquire a Mentor
You can avoid making mistakes on the learning curve by finding a mentor who can guide you through the whole process. Your mentor has climbed the mountain—he knows the terrain and knows what works and what does not work. You can learn from the process and avoid making mistakes.
In addition, your mentor has systems. The most efficient facet of leverage is to transfer your mentor’s systems to your use. Learn from those systems and apply those systems to your business, real estate, stock market and internet.
Acquire a Team
Nature made us incomplete—we have incomplete knowledge and experience; we have to collaborate and build dream-teams to fill gaps in our knowledge and competence to succeed. Our teams can fill up our blind spots.
If you want accelerated leverage then find a competent team to help you. Your team will help you go faster. A 4X100 meter relay team runs much faster than an individual runner.
Your team can consist of people with expert knowledge in their respective fields. They don’t have to be your employees but should be available for advice. For instance, if you are a real estate investor your team will consist of your accountant, solicitor, and real estate agents who bring you deals, mortgage broker and your builder/ handyman. If these people are property investors, they will be able to give you better quality advice.
Before you start building your network, find your core group that will help you build your network. When like minded, joyful and success-oriented people work together, enormous energy is released. Try and avoid people with negative energy around them—they will drag you down.
Your core group or dream-team will provide the synergy to create an invisible force that will attract people to your network. 1 + 1 is, not 2, but 11. The sum of the parts is far greater than the whole. This is what your core group can help you achieve.
Jesus selected a core group of 12 men, and the world was never the same again. Their network and influence has lasted over centuries and continues to expand even today.
Bill Gates and Paul Allen collaborated to found Microsoft and became the richest men of all times. Larry Page and Sergey Brin founded Google that is used by millions of users and is presently expanding incessantly.
Facebook, which is the biggest networking platform of all times, was created by a team of four Harvard University students: Mark Zuckerberg, Dustin Moskovitz, Eduardo Saverin and Chris Huges. The examples that history provide are endless.
A core group constituted of an aligning team (that is not pulling in different directions) will always out-perform an individual. So, don’t try to do it alone. Build a core group first and then your network.
Mike Littman coined the term ‘Loverage’. If you love what you are doing and are spiritually and emotionally connected with it, then success will come much easily. When your thoughts, mind, body, emotions and spiritual self are congruent you achieve unassailable heights.
Ask any sportsperson about their greatest sporting moments, and you’ll find them acknowledge that at the height of their achievement, their mind, body and spirit dissolve into a singular force. Do what you love doing and you will apply the ‘Loverage’ even without knowing.
Accelerated Wealth Creation Through Leverage
There is no such thing as a hundred percent leverage. It is a myth perpetuated by certain vested individuals who want to market their books and products. There will always be some financial, time, and effort commitment in the beginning. In due course, as the business or investment progresses, finance and time involvement can be reduced, and leverage increased.
The above arguments should not dissuade you from using leverage with prudence and intelligence. Leverage, without doubt, is the most important and powerful tool in the armory of wealth creators. However, it is of paramount importance to understand its correct usage before applying it in a fit of excitement. Initially, start applying small forms of leverage and as your confidence grows, you can increase the amount of leverage to one that you are comfortable with.
Even if you start applying a little bit of leverage in your life, you will be amazed at the results. Leverage is power, strength and intelligence.
Mark Victor Hansen and Robert Allen, in their book ‘One Minute Millionaire,’ provided a formula:
Leverage = Speed = Goals
This, in my view, sums up how you can use leverage to reach your financial goals within the shortest period of time. You can increase your returns from 5-10% offered by banks and financial institutions to over 60-70%, or even higher through leveraging.
Remember, without applying some kind of leverage, there is no possibility of creating accelerated wealth.