I was having coffee with my business partner Mun Hoe today. We were talking about property investments and went onto the subject of leverage.
I was talking about leveraging the bank’s money in property when Mun Hoe shared with me that he read an alternative definition by Bradley Sugars, in his book Instant Success: The Real Estate Coach.
Brad Sugars defines Leverage as
“Do the work once and get paid forever“
I was blown away. I was stunned at how true this definition was!
Mun Hoe went on to share that Brad Sugars gave a few examples of Leverage:-
- You write a book once and get paid royalty forever …
- You write an advertisement for your business once and test it to see that it works and then, you can run it for as long as it keeps working.
- You train someone once and then they do it for you long term …
- You buy an investment property once and collect rent and capital gain forever …
- You get a new customer for your business and keep them coming back for a long period of time
- You build a network of distributors and they keep distributing for you forever …
Brad’s perspective changed my view of leverage forever, even though I have used the concept of leverage to achieve my own financial freedom.
~ Willy Lim ~