Earlier, in parts one and two, we talked about the principles and concepts of making money, and that leads to tremendous wealth. As an update, here are the topics again:
1. Knowing value
2. Practicing conservatism
3. Pay yourself first and we touched,
4. LEVERAGE and reinvestment
Now I’m going to talk about number 4. so let’s move on.
As a handle that can move large masses very easily and achieve more in less time, so you can also create wealth faster with leverage than with savings and practice conservatism. Conservatism does not waste what you have.
Working for an hourly wage will not make you wealthy and practicing conservatism would just keep you going and make ends meet and maybe live very well. However, you will not love great wealth.
For that, you need to create leverage. Gearing is the art or technique you can use to create or articulate a system, thereby generating MORE revenue streams by earning a portion of revenue from projects.
A good example might be the following:
You wrote a book and negotiated with your publisher who thinks you have a No. 1 bestseller on our hands. He accepts all risks and finances the publication of the book and markets it on the assumption that you collect 10% of gross revenue. Whether it’s a winner or not, you get your 10% of gross sales under contract, and all you did was write the book. This is a form of leverage. The money you make on this may well be several times more than you make in a whole year. This is the power of leverage.
Another example: You created a machine or product – physical or chemical – like a shampoo spray, bathroom cleaner, etc., and you arranged a manufacturer to manufacture it in large quantities and then distribute it to thousands of distributors across the country – – or the world. Your takeover of this, as before, says 1 to 5 percent of revenue. At present, you can see how easily you can become a multimillionaire from these types of leverage techniques. You will never have to work another day in your life if you create a system like this for yourself. You can learn a new craft, shop, use your inherent talent to create products and services for sale, and you will surely come up with a winner if you stick to it.
In a moment, I’ll show you how to set one up for yourself with a little effort on your part. You do not have to create a vehicle for financial success, one already created for you. All you have to do is make it work. Well, show you how, every step of the way.
This is the real secret to creating great wealth – money to burn etc, or whatever you want to call it. The secret is to put in a little effort to get the most output possible. You will learn how to invest in multiple projects and you will see how 20% of your investment will generate 80% profits for you. You work smart, not hard. Work less. Make more.
Now, suppose you created a product or service using this leverage system. And your money in the bank generates interest on interest that is mixed daily, quarterly and annually. Soon you have a tax problem. You make too much money and Uncle Sam wants his share. You will now have to scratch your head to lower your taxes. Your income hovers to the moon and you will have to seek tax breaks and occupy yourself with protecting your income.
To combat this problem, you will need to find new investment vehicles that will protect your income for years to come. You will look at long-term investment funds, trust funds, equity funds, reverse mortgages, government bonds, gold, silver and other precious metals, reinvesting in major malls, antiques, art collection and more, just protecting your current and future income.
But regardless of whether you cut it, you will still have to pay Uncle Sam some of it by applying legal tax avoidance strategies, despite the creative tax accounting you may have to apply.
But all in all, it is better to have all this money available to live an abundant life and pay Uncle Sam his share, than to squeeze a penny to live and end in poverty. A millionaire I know said he could never spend all the money he has collected, but it’s nice to know it’s there if you need it.
So brace yourself and get ready to put on this LEVERAGE vehicle that is already set for you to achieve all the financial results we have described above. You will enjoy the excitement and the ride.
The faster you start, the faster you look to start a reinvestment program as described here. But at that point, who cares when you have vaults of money that keeps piling up.
Click on the link below and take a trip to a wonderful world of wealth and prosperity.