How to Use Leverage to Build Wealth and Enjoy Life

How to Use Leverage to Build Wealth and Enjoy Life has 5 ways you can use this powerful tool that is often thought of as evil.

In this video i want to talk about how to use leverage to build wealth and also make your life a little bit better because well really that’s what wealth is all about right it’s not just about the money hi i’m camille gaines here and on my website retire i talk about and i write about investing since so well about 40 years ago as well as creating

Alternative income streams over the past 15 years or so after stumbling into early retirement with my husband in this video i want to share with you how to use leverage leverage has been given a bad rep because it can be really dangerous and it can completely wipe you out if you’re not careful with leverage but leverage just doesn’t relate to money it reads a lot

Of things that can not only make you wealthier but also make your life better and richer if you like this kind of information make sure you subscribe to my channel click that little bell so you get notified when i create new videos and if you happen to like this video i’d love it if you give me a thumbs up button just so well it makes me happy alright so the

First thing i want to say about how to leverage is with your money because that’s mostly what i talk about here on retire certain okay so you can use leverage to my favorite way is to purchase real estate all right so i know everybody is now anti-debt there’s a huge anti-debt thing going on and what’s really really interesting being an older investor myself

Is that well interest rates are at all time unprecedented lows and everybody hates debt but i financed my very first car out of college it was awful for almost 10 percent so i’m not hating debt so much because i feel like it’s really really cheap now relative to other experiences i’ve had in my lifetime so we do have to have that perspective having said that

I appreciate that assets cost less if we don’t finance them at the end of the day we have more money if we don’t have to pay the bank financing i get that so you have to do what works for you but the point of this video i want to make is you can purchase real estate with a 25 30 fifty percent down payment you can leverage an asset you can buy a million dollars


Worth of property for two hundred and fifty thousand to five hundred thousand dollars you’re getting more for your money and often if it’s structured properly that asset can pay for itself and so that can make a lot of sense to leverage your money in that way now as i said leverage can be risky it can wipe you out so be super super careful with that and be very

Very knowledgeable before you even consider anything like this and i always like to throw in here always check and make sure where we are in the cycle because if you buy at the high end of the cycle a lot of times you’re overpaying for assets all right the next way or thing i want to mention about leveraging leveraging your money is financing can make sense for

Any appreciating value or any ass appreciating asset okay my car that i had to finance at almost 10 percent only because i didn’t have money to buy it it was not an appreciating asset it was awful having to pay for that but something like real estate when purchased correctly can be a really smart financial move right now uh it could make sense to purchase a

Business if it’s at a fair evaluation so what are assets that you might be able to leverage and would that make sense for you and i say that i asked that question really really carefully because don’t put any negative comments down here please hate comments about debt about me because i’m offering the suggestion i’m just saying that this worked for us all right

The very next way that you can use leverage is with your time a lot of people feel like they don’t have time to deal with their finances in my financial coaching i find that people don’t have time they don’t deal with it they don’t track it they don’t take care of it they don’t invest it because they don’t have time and i get that i mean our brain only has so many

Hours that we can really focus on things that are super super important and high level and financing and investing is high level it takes extra brain power to think about this it takes extra focus it takes that really important time that we have when we know we are working at our best and a lot of people are just already out of that because they are working and or

They’re caring for a family but having said that if you can hire someone that you can pay to do things that are lower easier to do tasks things like mowing the lawn or housekeeping or running errands you can hire students or people looking for extra money and you can spend that time instead of doing that on investing or figuring out ways to increase your income

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Or perhaps making some extra money from consulting or starting some sort of business then you’ve leveraged your time in a really really smart way a lot of people feel wrong about delegating about hiring someone to do things for them like renting errands or or cleaning their house but i say if you if you can do that and you really need to make more money or have

More money it’s just really a question of having your priorities straight around how you spend your time and how you spend your life and i like going to the grocery store i like doing some of these things but sometimes i have to delegate it just because i know it’s not the best use of my time and i’ve got something that’s more important for me to do that’s going

To have a bigger effect on our money on our finances on our overall life than me going to the grocery store and picking out the very best artichokes in the produce selection which is one of my favorite things to do okay the next leverage strategy is to leverage your capital i’ve talked about this a little bit in my triple wealth building video that you may want to

Check out but in leveraging your capital what you’re doing is you’re using the same capital for different results so for example you may generate income and you may also have a capital gain or experience growth in in the value of an asset as it’s called in traditional investing growth versus income so in this example you have an asset and generates income and

It increases in value you’ve used that same amount of capital for two different things another example of leveraging capital might be selling cover calls on dividend stocks you’ve got the money coming in from the dividends you’ve got the money coming in from the cover calls that you sold and you may even experience capital gain from the stock if you bought it at a

Good value and or it goes up after you bought it so in this case you’ve leveraged your capital by using it for more than one thing and getting multiple results good results from that capital the next way that you can use leverage to build wealth and or make your life better is with resources for example can your cpa do your bookkeeping i’m a small business owner

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And there’s a lot of things that i actually do because i used to be an accountant but that i would really prefer someone else do and i’m looking for someone else to do it like filing returns and doing the other sort of forms and things that have to be done that are related to owning a small business if you’re not a small business owner and you have other things

That need to be done such as tracking your cash flow making sure that you’re staying within your spending plan which is also called a budget whatever it is you’re doing with your finances how can you use someone like a bookkeeper and does your cpa have that resource for you another example might be can your handyman mow the lawn for you can your housekeeper run

Errands for you you’ve gone to the trouble the time and energy to find that person you’ve it’s hard to find people that are good and honest and and want that work so why not capitalize on that why not leverage that and help them out by being able to pay them a little more money and you don’t have to spend time finding the same person but not only that you can

Leverage your time like i just talked about having someone else take over these things for you in a super super easy way and then the next thing that you can leverage are your skills you may be working for a company and getting paid for your skills and then you may be able to use those exact same skills to start some kind of side hustle maybe that’s some sort of

Consulting on the side or some sort of online business or something else either as you’re working or a little bit later you’re using those same skills and just expanding on them and capitalizing on them to create more wealth in your life to create more income streams so those are five really good examples of ways that you can use leverage to not only build wealth

But to make your life better and you know what sometimes it may make sense to get someone to clean your house so you can go sit on the porch swing and relax and swing and enjoy life a little bit remember retire certain

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How to Use Leverage to Build Wealth and Enjoy Life By Retire Certain