Leverage is what we use to gain maximum output from the minimum input. Three forms of physical leverage are used in everyday life: a lever, a pump and a set of pulleys. Each form of leverage reduces the effort needed to obtain greater result. We use lever to lift a heavy load. The longer the lever the easier it becomes.
As human beings, we have two form of leverage: bestowed and acquired. The bestowed are the ones we’re born with. The three form are gifts, talents and abilities. The acquired forms are knowledge, attitudes and skills. They can be learn or taught.
We use our leverage to increase the results possible from our other sources – especially our mediums of exchange. The only use of our mediums of exchange is to enhance the benefits from all our other resources.
What are our resources?
- Body – Physical Health
- Mind – Capture, storage, retrieval and correlation of information in order to solve problems, creativity
- Relationships – Good relationship will offset any deficiencies in other resources.
- Possessions
- Leverage ( Bestowed and acquired )
There are two forms of medium of exchange
- Bestowed Medium – Time, it’s the only reason that all human beings have in common 24 hours every day. The only benefit of time is to enhance our other resources. It allows us to use and enjoy our bodies, minds, spirits , relationships, possessions, leverage and money. Without time, none of these would have any real meaning.
- Acquired Medium – Money, like time, its only real benefit is to enhance our other resources and our enjoyment of the benefits they offer.
In the business world, the leverage principle is applied with even more wondrous effect. No one has the time or energy to build successful business on his own. An entrepreneur’s success is tied directly to the amount of leverage he can bring to bear. That’s where customer referral comes in. It is a system specifically crafted to give ordinary access to extraordinary leverage.
Linear Income is where money paid in exchange for time and Residual Income is the kind of income that provides real leverage. Once you have established a residual income stream, it keeps on flowing, even if you decided to take a year off.