What Is Leverage: Good Debt VS Bad Debt
What Is Leverage
What Is Leverage: SO do you know the difference already? Confused a little? When you are in the process of parting with your hard earned cash you might want to consider a few things first of all.
Firstly is what you are buying going to give you a long lasting pleasure and be a great investment to your life or not?
What Is Leverage: Urgency Fixes And Short Term Gratification!
I know that it is easy to find pleasures and to blow money every now and then but what I am saying is that how much you spend on rubbish can be destroying your future WHEN YOU COULD BE INVESTING IN YOUR FUTURE.
What Is Leverage: For example with the way the world is going in the Global Economic Meltdown you won’t get much help from governments or organisations when you retire, you just won’t. Don’t rely on outside sources but rely on yourself. You are buying stuff now that might give you a fix of a temporary nature but what long lasting affect will it have on your future lifestyle?
LOOK FOR WAYS TO CREATE MORE MONEY!
What Is Leverage: Why Are We In So Much Debt?
Simple! Banks lent More money Than people Could Afford to pay back! Ergo, You Have MASS DEBT and everyone paniking!
Debt is measured by how much you borrow and how much can be paid back. With good debt it is versus what the possible return could be. Confused now?:) Simply get clear on borrowing the right things if you are going to borrow that is? If You Borrow With No Real WAY OF RETURN ON YOUR BORROWING THINK FIRST!
So if you borrow money to blow money then IT IS DEAD MONEY! You Owe It and You Cannot Afford To Pay It Back! BUT EVEN when you DO pay that money back you aren’t getting any long lasting return or reason for borrowing in the first place. Bad Debt is exactly that. Borrowing money for no real reason exept the fact that you ‘want’ something badly enough like a ‘desire’.
What Is Leverage: Are You Ready To Wipe Out ‘Bad Debt?’
1) You will clear out your Credit Cards and only keep 1 or 2 that are useful for maybe a business?
2) Stop using money that you don’t have.
3) Know exactly what you can live on. Versus What You Earn!
4) DON’T USE loans.
5) If You Earn a Middle Class Wage Don’t TRY AND KEEP UP WITH THE JONES’S!
6) Look For Bargains! They Are Everywhere.
At that point you will know whether you will have to borrow or not!
What Is Leverage: GOOD DEBT!
IS THERE SUCH A THING? Well Yes There Is! Good Debt means that if you want to start an enterprise or a new venture of some kind then you might want to borrow money off of an organisation or off of a friend maybe to get started. This is knowing that you will pay them back AND THAT YOU HAVE OPPORTUNITY and POTENTIAL FOR GREAT RETURN ON INVESTMENT. Making it leverage rather than AIMLESS DEBT!
This means that you are borrowing the money to use it in a ‘constructive’ way where high returns are likely depending on the soundness of your venture idea. So if you have a sound business model or system you can work with THIS BORROWING to bolster your future income and give you a possible retirement fund. THIS IS WHEN IT MAYBE JUST MAYBE it is worth borrowing some money for this SOUND IDEA?
This Is Therefore classed as good debt. Many great’s of our time have used good debt to fund their enterprises. People like Donald Trump, Richard Branson and Bill Gates have used this idea. Now I am not saying that you should approach a friend and ask for $100k ‘unless’ you have done your homework and preparation to position yourself well in learning the figures and determining WHAT THE LIKELY returns MAYBE? It all depends on the soundness of the system or product.
What Is Leverage: SO Have You Got A Financial Gameplan Yet?
So Good Debt is planned borrowing that will likely be giving you a high return on your efforts.
If you have a problem with borrowing from a friend then offer an interest payment to them for their confidence in you. Or you might want to find out about borrowing with your mortgage lender again depending on your confidence of the business you are going into.
What Is Leverage: IMPORTANT THOUGH there Are NO Guarantees In Anything! This Is Why You Want To Find As SOUND AN OPPORTUNITY as you can find to start out. When You Start Making The Big Bucks YOU CAN SPECULATE AND BORROW MORE YOU SEE!:)
This Is Where Planning Comes In!
I found that it is very useful when you have a business plan and you are determined to make the change based on your longterm desire for a better life, you then go into the situation with your heart and mind working as a team.
I also found that when you are trying to better your life and start a business, you might want to consider a business where you don’t have to invest more than $50k. Why this amount? Well if you start a franchise or a traditional business you will have alot to consider like staffing issues and rent for a building not to mention overheads of stock and storage.
Then you will have to turn a profit whilst dealing will many different differentials to add to the stress of trying to follow your passion for freedom and a life with your family. Can you see that? I am not saying DON’T buy a traditional business I am saying think about if it is REALLY what you want, REALLY!
What Is Leverage: Work Online?
Don’t panic though though because for under $3k you can get started in your own Internet Business that will pay you for life, I KNOW I AM DOING THIS. Returns Can Be As Much As $100k Per Month Depending On Your Experience and Your ability to Market Hard and Find Business for your product
Less headaches and no staff plus no storage or overheads of a building’s rent. You just need to find the right system and copy someone who is doing this successfully. Don’t go throwing a ton of cash at something you don’t understand or that hasn’t got many good reviews or testimonials.
1) Research Everything.
2) Follow your heart but also be realistic.
3) Consider what your future looks like and build a business into it.
4) Trust that your passion or a part of it can be monetised.
5) Ask yourself and others what you and they think are your greatest strengths.
6) Be in integrity with your mission in life and ‘do’ what you say you are going to do.
7) Only Listen To Successful Leaders in your business niche
What Is Leverage: It is just a thought but you might want to outsource some of the things you don’t understand, I did. Take my word for it I ‘struggled’ with throwing money at various online ventures but I soon realised that I must ‘learn’ from experts in this area. That is what I did personally. I wish you luck with using your Good Debt instead of Bad Debt, you can change the habit and leverage your loan and your future I AM DOING IT so YOU CAN TOO!:)
Let’s Get Clear Here! Do You Want To Begin An Online Business?
Next time you go to spend money on something temporary remember that you read What Is Leverage so you now understand and do have a ‘future’ and that if you want a secure life you might want to learn more about Investing your money. If you want any help with this let me know by adding a comment to the bottom of this Blog Post. Please feel free to share this with as many people that you can.
What Is Leverage: READ MY BOOK ABOUT SAVING MORE MONEY AND MAKING MORE MONEY YET?
I Wish You Massive Success and I know that you will get it when you understand the phrase What Is Leverage!:)