Let me ask you a question. I want you to take a guess what’s the one word that makes people Millionaires and Billionaires? Now what did you think? Did you think about fame, luck, timing, attitude, mindset, product, quality, team. What was your thought? I want you to imagine this; if you have #86,400 in your bank account and someone stole #10, would you throw away the remaining #86,390 and try to get back to that person or say “look, forget it and move on?”. Imagine a cash credited into your bank account #86,400 everyday but carries over no balance. It means whatever you don’t invest or take out that day gets to zero. What would you do? You withdraw every dollar. Wouldn’t you? Well! We do all have that bank account. It’s called “TIME”. Every single day, you have 86,400 seconds deposit to your life. I mean your time bank. How would you spend that time? It carries over no balance and doesn’t allow any overdraft. You’ve heard about the concept “Return On Investment (ROI). There is a more powerful concept which is ROTI and that is “Return On Time Invested”. That’s correct! Most people when they think about one word that makes people Millionaires and Billionaires, very often, word that comes to mind is “HUSTLE”.
You’ve gotta work for 10-30 years. You know what? Hustle is part of it. Hustle is just to get your foot into the door of enterpreneurship but that’s not the word that makes people Millionaires and Billionaires. When I was getting started, I was hustling. When I hear this concept “Hey man! You’ve got to work 10 years ” is the problem. I have bills to pay. I had to take care of my Mum and after my Mum and Dad got divorced, I have to be the man that provides for the family and I couldn’t wait for 10-15 years. I had to make some money right now. Nothing is wrong with hustle but that does not make me and my team Millionaires. So, what’s that one word?
That word is LEVERAGE
I want you to imagine if you want to lift a big heavy stone. You’re trying to do it with your two hands and it doesn’t even move and you try your very best. However, if you can use let say a long pole, you try and lever and lift that up. That’s leverage. LEVERAGE is maximum productivity with minimum effort. Let me give you some examples. There are many forms of leverage but I’ll give you four.
1. Money Leverage
Imagine you’re buying a piece of real estate, a property and you’re buying with a down payment. If you borrow the rest from the bank(80%, 75%) to complete the payment, that’s called a MONEY LEVERAGE. You’ve just used bank money to create wealth and build your business or you want to buy some new equipment for your company and you go to the bank or an investor to borrow some money, that’s a form of leverage. An investor get money Leverage.
2. Marketing Leverage
Imagine running an ad on social media and you create the ad once like a video and it’s seen by 10,000, 50,000 people, 24/7. Even though you’re not selling directly, your ad is been exposed and viewed by tens of thousands of people. That’s a form of leverage called Marketing Leverage.
3. People Leverage
By having the team hire someone to perform a task. Probably, the boss doesn’t seems to be around, he can choose someone lower in position than him to take up his responsibility. That is People Leverage.
4. System Leverage
Let say for bookkeeping, you’re using “Intuit QuickBooks” to manage your finance. That’s a form of System Leverage. Or you’re managing an email list using an email system that allows you to draft one message and send to as many as possible. That’s system leverage . Using technology to boost your business.
There are many other forms but these four are very important. Work with them.
This article is my jotting down of points from a video record of one of my financial role models: Dan Lok. The article is based on his personal and life experiences.
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