Getting rich isn’t just about hard work. In fact, hard work has little to do with getting rich. It’s not that I don’t defend hard work, I do. I love to work hard, but most of all I like to see myself and others working smart. I know that getting rich and achieving success is not exclusively the domain of blood, sweat, and tears. I’ve seen friends, co-workers, and family work to the bone for little to no reward.
The cult of hard work, self-sacrifice and the hen that lays the eggs
There is a cult of self-sacrifice evident in our culture that ensures that you are very busy, working very hard, and putting in crazy hours. When it comes to building personal wealth and achieving success, you are the goose that lays the golden eggs. However, you can only push so hard on the goose that lays the golden eggs before she stops laying those golden eggs. Without exception, all golden geese will eventually run out of energy, ability, or enthusiasm. Therefore, learning how to use other people’s time, money, and skills (i.e. take advantage) is a prerequisite for getting rich, building wealth, and achieving success.
Money and leverage from other people
Generally speaking, gaining access to other people’s money (OPM) is a form of leverage that allows you to go beyond the limits of your own resources and instead apply ingenuity to everything you do. In business terms, leverage is the key that differentiates the self-employed who has a job from the business owner who owns a business. In financial / investment terms, it means having access to cash that is not yours to buy income-generating assets that you control.
What the rich and wealthy have known for years
The richest people and especially the richest people in the world have known about how to take advantage of other people’s money for years. Everyone from Jean Paul Getty, Aristotle Onassis, and Donald Trump, has excelled in this number one principle of wealth creation. His use of OPM to buy assets is legendary. Onassis, in particular, is known to have obtained contracts to transport ore and oil on ships and tankers that he did not yet own and then turned to the banks to obtain the loans to buy the ships and tankers using the contracts. A cheeky and talented negotiator if there ever was one!
People go about building wealth or acquiring assets in different ways based on their backgrounds, past experiences, and what they have been taught or know about money. For the most part, people think that great riches and wealth are largely unattainable because of the model or mindset they have about money. What most people don’t understand is that you don’t really need money to make money. It sure helps, but what you really need is access to other people’s money to make money.
The benefits of using other people’s money
OPM saves you time; it allows you to do things before you could do them otherwise. It allows you to enter into deals that your own resources do not allow you to make. It allows you to make decisions that you might not otherwise be able to make. It takes the average person many, many years to accumulate wealth or build a business entirely on their own resources. By using the power of other people’s money, you can accelerate personal wealth creation or business growth. Importantly, building your personal wealth is no longer limited to what you have been able to save and invest with your earned income.
How To Get High With OPM – Real Estate
The typical first experience for most people using other people’s money is when they take out a mortgage to buy their home. Typically, your down payment combined with your employment contract that demonstrates your ability to produce future income is enough for you to obtain a home mortgage loan. Unfortunately, your home is not an asset, well it is, but it is the bank’s asset, since they earn income from the advance loan, not you. If you can get a bank to advance you a mortgage loan to buy an investment rental property (an asset) whereby you can keep what is left of the rental income after paying the mortgage, then you have used other people’s money to buy and active to produce income. To guarantee this loan, you must show the bank that it is a safe bet. They will generally want to see that you have at least 20% of the purchase price as a down payment and that this asset and other sources generate enough net income to deal with any changes in interest rates, rental void periods, etc. .
How To Get High With OPM – Business
In business, entrepreneurs and business owners gain access to other people’s money when they write a business plan that they present to a commercial agent or venture capitalist, that is, investors. This process is known as raising capital. In exchange for the money (known as equity) received, the investor who provided the capital typically receives shares (that is, equity) in the business. Money can also be borrowed from a bank and the bank is repaid the principal and also receives interest on the loan. It is the business owner’s job to make good use of this capital; to produce products or services that generate sales income to repay the loan and, of course, all other business expenses.
Other people’s money is always available and accessible to a greater or lesser extent depending on the general market conditions. Your first responsibility as an entrepreneur or investor seeking capital is to understand and learn about the many sources of OPM and the many trading structures that use OPM.
Jump out the window of opportunity
Finally, the main takeaway from all this talk about other people’s money is that instead of saying to yourself “I can’t afford to start a business” or “I don’t have the money to invest in that business,” now Know that I can’t. there are no real excuses or limitations. It’s not that using other people’s money is without danger. Like all financial transactions, there are inherent risks. First of all, you are responsible for repaying the borrowed capital and generally providing the investor with an agreed additional return. However, that is not up for discussion here. The key for now is realizing that you can always get access to other people’s money so that you can enter into deals and do things that you previously thought were not possible. You can start jumping through the window of opportunity when it’s open … and when you start to implement this principle of other people’s money in your business and personal wealth-building efforts, you’ll start to realize that everything is open! time!