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Leverage is a term used in business for borrowing money or using debt to buy assets.
Other people’s money (OPM) has been deployed for centuries to help governments and businesses to raise capital, which I’ve written about in my book, Borrow and Grow Rich.
There is a big difference between good debt, which helps you buy assets that produce income, capital growth, and create jobs and bad debt to consumer goods which go down in value.
Can you think of an example of where you have used good debt or leverage to buy an asset like a property?
Have you also used bad debt, such as a credit card, to buy something that you didn’t want to save up for?
How much has that item cost you in interest?
Lessons
Use good debt, leverage and OPM to accelerate your wealth building process.
Avoid credit cards and other bad debt and only use a credit card to pay for things that you can repay in full at the end of the month.
If you have credit card debts, start on a plan to clear the balance as soon as possible, rather than just paying the minimum amount each month.
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Asset Rich Time Poor, Time Rich Asset Poor – Money Tips 365 Day 44
Asset Rich Time Poor, Time Rich Asset Poor – Money Tips 365 Day 44
Does Loyalty Pay? Money Tips 365 Day 43
Does Loyalty Pay? Money Tips 365 Day 43
Problems are Good – Money Tips 365 Day 42
Problems are Good – Money Tips 365 Day 42
Resources or Resourcefulness? - Money Tips 365 Day 41
Resources or Resourcefulness? - Money Tips 365 Day 41
Can Money Buy You Happiness? Money Tips 365 Day 40
Can Money Buy You Happiness? Money Tips 365 Day 40
Rags to Riches To Rags - Money Tips 365 Day 39
Rags to Riches To Rags - Money Tips 365 Day 39
Cash is not risk free! – Money Tips 365 Day 38
Cash is not risk free! – Money Tips 365 Day 38
Pension Fund Charges Can Seriously Damage Your Wealth – Money Tips 365 Day 37
Pension Fund Charges Can Seriously Damage Your Wealth – Money Tips 365 Day 37
Sell With Stories - Money Tips 365 Day 35
Sell With Stories - Money Tips 365 Day 35
Enjoy your life Money Tips 365 Day 32
Enjoy your life Money Tips 365 Day 32
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