The Power of Leverage

I heard it behind me and turned to see who said it. It was an inscription on a T-shirt the person behind me read out loud. "My Money Grows like grass" were the words on the shirt. I thought over it for like two seconds, and moved on. The truth however remains that if you don't understand the power of leverage in your money making venture, you will struggle for the rest of your life. We are in the 21st century where leveraging has become the most important tool and networking has become the rule of engagement. After all, money does grow where value is not created. People are therefore attracted to value. The more people you find doing something, the more value it assumes. This however is not applicable in all cases though.😄

In Kiyosaki's book he explains that there are three types of income. There is active income, passive income and portfolio income.


1. Active Income or Earned income is what comes from a person’s labour or effort at a job or business.  I’ll describe it as career/business-related incoming cash flow. This typically comes from exchanging your time for a salary or wage. This for many of us is the lifeblood of our finances.  Without work, we don’t have money. However, what happens when we grow old?


2. Passive income is the opposite of active income. It is the power to earn from every body's labour and effort. This is where you receive cash flow without actively putting in long hours. Passive income comes from what Kiyosaki defines as an "asset". In this case it can be something like owning rental property, where tenants pay you rent on a monthly basis, or being involved in a Multiplex or Multi Level Marketing Venture.


3. Portfolio income which comes in the form of stocks and bonds. When you own these types of investments you receive cash flow in the form of dividends, rent and coupons


In the 21t century, it is evident that you need a set of skills to thrive in this ever changing technological age. The advancement with which things are happening requires a proper network taking advantage of the power of leverage with the right people and a mix of these three thinking approaches.


1. Critical thinking

2. Strategy thinking

3. Transformational thinking.


It will be foolish and selfish to work alone. Being wise is the ability to work with others, achieve greatness together, making use of the Power of Leverage to change the world in love and oneness. You need to reorient yourself and develop a platform to keep you on track. I hope you are all set to enjoy the benefits of team work.

This is wishing you all the very best in your endeavour! 😉