We’ve all heard the maxim, “Work smarter, not harder.” We’ve heard it so much, it’s become a cliché. People will generally tell you this, but they won’t tell you how to actually do it. How do you work smarter, not harder? Well, as is an any part of life, there isn’t one single answer to working smarter, but I do have one that I believe will help. One that will put more money in your pocket if you use it wisely. I can sum it up in one word…LEVERAGE!!!
What Is Leverage?
If you look up leverage on Google, you’ll see a few different definitions, but the one that applies here is:
Use (something) to maximum advantage.
Leverage is the ability to use all the resources at your disposal to your maximum advantage. You can use leverage to build more wealth than you could ever achieve building on your own. Let’s look at a few examples of leverage…
We all know what “Other People’s Money” is. Financial leverage is your ability to use other people’s money to help you make money. This can include money from investors, loans from a bank, or any other legal means where the money does not come out of your wallet or pocketbook. One common example of this is borrowing money from a bank to buy a rental property. You’re using the bank’s money to make you money.
We only get 24 hours in a day. Same goes for the wealthy people. The difference is that the wealthy have learned to use other people’s time. They create businesses where employees or contractors are paid for some work, but at a lower rate of the value they produce. This allows the wealthy to bring in more money than they pay out. You’re not limited to 24 hours a day of effort when you have people working for you.
Systems & Technology Leverage
This is where you leverage a system or technology that you or someone created to allow you to get more work done with less effort. It’s true you can manually manage your marketing campaign across multiple platforms like Twitter, Facebook, or Instagram, but a system or piece of technology can make that a lot easier. A system will identify a process for how this is done and the technology can make it happen. Automation and outsourcing is very powerful.
This is where you leverage your network of people and their resources to catapult you ahead in the game. It has been said that if you want to be wealthy, you need to have a strong network of people. A good network of people will allow you to grow and make the relationships necessary to expand your capabilities beyond where they are are now. Check out my blog post that talked about networking: Get Out There…Sorta.
I use to think I had to be a little good at everything if I wanted to be successful. But based on my reading and my experiences now, I know that isn’t true. If you want to be successful, you need to know how to leverage other people’s talents and experiences. You don’t have to become an accountant to manage your own business financials. You hire an accountant or financial secretary to do that for you. You want to pay people for their knowledge of doing things you don’t know how to do or don’t want to do. For example, if you typically make $50 an hour doing marketing, you wouldn’t want to perform a task that someone making $20 an hour can do. Pay them the $20 an hour for their knowledge, and go make $50 an hour for yours!!!
I believe it is possible to get ahead in your financial life relying solely on yourself, but why do that when it will most likely take you more time and more effort? Why not use leverage to catapult you to your wealth? The opportunities for leverage are everywhere. You just need to see it and know how to use it. Leverage used the right way can help you reach your financial goals much faster than relying solely on yourself and your own resources for success. Do your best to understand these types of leverage and how to put them to work for you. Now go and work smarter, not harder!!!