subject: How Does Cash Leveraging Work [print this page] Those who are concerned with their financial future begin to take action by placing a small portions of their income into retirement accounts such as a IRA or Mutual fund however if you change your thinking from being an employee to an investor or entrepreneur then you start having people & money work for you, this creates freedom, this creates leverage.
For example lets say you have $2,000,000.00 sitting in the bank. Most financial institutions pay interest depending on the type of account but for a basic savings account currently just about any bank or credit union is paying at least 3%, With 3% interest compounding on $2,000,000.00 you would earn $60,000 per year in just interest alone. That is how leveraging works. You leveraged $2,000,000.00 to get $60,000 which to me doesn't sound like a fair exchange but it is still better then nothing.
So most of us just don't have $2,000,000.00 just laying around so we can earn $60,000 in interest however it would not be unreasonable to have $3,000 to $10,000 in account which is again is only earning 3% interest, so you could leverage that cash for a better return on your money so lets look at some examples.
1st you could put your money into a high yield mutual fund, the national average show that most high yield mutual funds have a return on your money of 6 to 8% depending the size of the fund and where the majority of the assets are.
2ND you can leverage your money by placing it in to a Blue Chip Stock portfolio, these stocks typically have bigger returns as much 21% and if you follow the trends well enough you can make a lot of money really fast however this requires constant monitoring so you can pull you money out of a poorly returning stock and place it into a better performing stock.
3rd you can purchase real estate with the current economic condition both commercial and residential property are extremely keep and with the right location for any given asset most property doubles its value every 10 years. The only problem is I don't have time to wait 10 years for the fruits of my labor to start paying off,
So the last thing you could do is follow the wealth, how do the wealthy get wealthy in first place and 2ND how do they stay wealthy. They learn how to leverage at whole new level they understand that to have big returns they need to take on a bigger risk so they pool money from several investors to limit risk they acquire companies and break up their assets because sometimes things are worth more in pieces then as a whole. They bay large chunks of stocks because the larger your assets are the more leverage you have, and they continue to leverage their assets to purchase other income generating assets which creates wealth and if you real proficient at this simple technique then you will have financial freedom, and never have to be burden with the price of gas again.
So the question is well how can I benefit from leveraging. Well if you are willing to leverage small part of your income and place it into a system them generates the income equal or greater then the amount of cash that you are leveraging then the risk is worth it, if it isn't then it not. So now you are probably wondering how do I get started, well its simple you can become an entrepreneur by joining a network marketing company, the power of a network market company is that have huge support staff who will assist you in becoming wealthy because each member of the network marketing company is leveraging one another to increase their personal income.
Also by becoming an independent business owner their are tax benefits. The IRS allows companies to pay all their expenses first then their taxes where we as individuals have to pay the IRS first then live off what ever is left over. So just by adding a few deductions could reduce your tax burden by 25% if not more. The best way is not to owe the IRS and not to get any money back. Any time you get a refund you basically gave the IRS or the state an interest free loan so that is not using your money effectively.
I guess with this new information that you have concerning leveraging I guess my question to you is how much cash would you like to receive this month, would an extra $3500 make difference in your life or do you want something more substantial like an extra $14,000 or even $20,000 well what ever you want you can have and I can show you how to get to where you want to be with an easy 7 step process to learn more checkout the resource box at the bottom of this post to get details on how you can accelerate your income in the next 48 to 72 hours.
