There are two major ways I've been able to increase my net worth over the past five years:
Using leverage to multiply my income - and this is where I really stand out from my competitors.
Living below my means so I can afford more fun things.
Both these techniques are easy to talk about, but very difficult to do consistently. If you want to be successful, you need to master these two skills.
This article shows you how to do bo
th by breaking them down into easy steps that you can start today
In the past, I've talked about how being rich doesn't mean you need to have an enormous amount of money. You could make a lot of money in a smaller environment as well. This post will explain how you can use leverage to create massive value for yourself and your clients.
Leverage = The Potential Value You Can Achieve by Using A Single Resource
You can accomplish a lot by using multiple resources, but you can also accomplish a lot by using just one resource. When you combine multiple resources, you'll need multiple employees or contractors. If you have employees or contractors, you'll need a business structure that's prepared for that. You'll need to manage employees, set salaries, deal with taxes and workers' compensation insurance, etc. This costs money.
But if you don't want to deal with all that, all you need to do is invest in a single resource. You can pay it less than if you had to pay them more, and you can probably still do a good job.
This strategy works in several areas.
For example, it works in:
Product design and development. A product can be developed by one designer, one engineer, or many designers and engineers.
Writing. A book or website can be written by one person or 100 people.
Marketing. You can write your own blog or hire someone to write it for you.
PR and media relations. You can publish your own articles on your own website or hire someone to do it for you.
Accounting. There are tons of options here. You can hire your own accountant or use a CPA, freelance bookkeeper, or an online bookkeeping platform.
Legal services. You can use a lawyer, paralegal, law firm, or online service to handle legal matters.
Consulting. You can hire a coach or a consultant to give you advice.
Education. You can study and teach yourself. You can hire someone to teach you.
Sales. There are tons of things to sell. From a book to an ebook to consulting, you can sell anything to anyone.
Accounting and tax preparation. There are lots of accounting software companies or freelance accountants out there, but you can also pay a software company to use their software to prepare your taxes.
Consulting. There are lots of consultants that offer everything from writing, SEO, to social media and marketing, so this is only a partial list.
You can see how a lot of different types of businesses can be built with just one resource. If you're building a business, you have many options as well.
As long as you have money coming in, you can always hire more resources.
So how can you use leverage in your own business?
First, you need to realize that the resources you have today are much more valuable than the resources you used to have. So if you have a bookkeeper, you need to think of
Some good ideas. Passive income is the best.