Basics of Leveraging

The ability to use a resource or advantage to achieve a desired outcome.

• Example: Time leverage is delegation. You can hire a company, contractor or new employee to help you build out a system, process, or technology to free your own time to do something more.

It is a strategic and creative way to achieve success and reach one's goals.

• By doing the proper calculations, understanding budgets, timelines, and managing the project correctly it can be a lucrative way to make money.

In financial terms, leverage typically refers to borrowing money to make an investment or purchase, with the expectation that the return on the investment or asset will be greater than the cost of borrowing.

• Example: You borrow money from a bank to buy a home, you make renovations and sell it. You pay back the bank what you borrowed (plus interest) and you keep the remainder. You leveraged the money from the bank to make yourself money.