There are two real secrets of wealth.

Editor’s note: This article is from WeChat public account “ Spenser ” (ID: spenserandhk) , Author S uncle.

I deeply feel that many people dare not use financial tools.

On the one hand, because some silly media in the market demonize financial instruments, on the other hand, everyone is fooled by some extreme individual phenomena.

When it comes to financial tools, many people think that this is a horrible beast, and they are afraid to avoid it, so they miss the opportunity to use this tool for themselves.

Like what I want to say today, leverage.

1

Now in the market, when it comes to increasing leverage, most people respond this way: “Ah, no, no, increasing leverage is gambling. It’s too greedy to bury yourself.”

People who do not use leverage, with the passage of time, congratulations, there is a high probability that you will become a life without risk, but a mediocre being.

People who make good use of leverage can use the possibility of the future in advance to increase the current life and funds, accumulate several times the energy, and speed up the accumulation of wealth.

This is what I mean by “leveraging thinking.”

Leveraged thinking is not just confined to financial markets, entrepreneurship and investment, it needs this thinking.

Let’s talk about investment first. As long as you are not a rich second-generation, but an ordinary young man with an average family and less than 500,000 capital, you must use leverage to invest.

You do n’t use leverage. In this life, unless you start a business, you will never get rich.

I told the employees of Shanghai and Shenzhen companies that your task in 2020 is to buy a suite in Shanghai or Shenzhen before the end of the year.

When they heard it, they said, “Crazy, how can that be?”

I said that I didn’t want you to buy tens of millions of luxury homes. You can buy a small apartment with a total price of 3 million just need to be on the car disk.

Suppose you buy a small apartment of 50 square meters and 60,000 square meters, with a total price of 3 million yuan. Your young people will pay 30% down, which is 1 million.

So how do you get this one million, take hundreds of thousands yourself, family members make up hundreds of thousands, and find a way to get one million together.

Three years later, this type of small-house rigidly-needed house will most likely rise by at least 50%, and 3 million houses will become 4.5 million.

But note that your down payment is 1 million, excluding oneInterest on some loans, which is nearly 150% of the return.

If you repay 2 million of the loan after selling it, you have 2.5 million of principal, and you can exchange for a bigger house.

So people who understand financial thinking will definitely not buy a house in full. They must find ways to use a lower down payment and a larger loan ratio.

Because the renminbi is depreciating and the assets are increasing in value, if you don’t use leverage to pry the funds of a property, you will never get on the car.

So the summary is that it’s not that leverage is bad, but that you don’t use leverage well.

2

Actually, let me say something more essential:

I think a good job, a good career, one of the cores is whether you can leverage the resources, rather than trying to force yourself.

For example, you are using leverage as a sales agent.

For example, if you are the agent of Fan Deng Book Club, you do n’t have the teaching ability of Fan Deng, and you do n’t have the money or ability to make apps. What should you do?

If you act as an agent, this product will become your product in disguise. It is nothing more than a profit.

So why do sales and agents often make more money? They use other people ’s products to leverage their wealth.

If you want to do your own product research and development every day, you may not enter the sales link in your life.

This is true for ordinary people in the workplace, but it’s the same for entrepreneurs or bosses.

For example, if I am a company myself, if I am responsible for each project, it is essentially no different from a migrant worker, and all my time is consumed.

I have to find the person who can do the project, use his ability lever to leverage the project, and use salary or project dividends to leverage this person’s time, ability and resources. This matter can move forward.

So talent is the biggest lever for entrepreneurs.

3

Of course, many people say that if you do leverage, the income doubles, and the risk naturally increases by the same multiple. What if the position is liquidated?

Here, I want to make a point that may be more controversial or even more upsetting.

Only those middle and upper classes with financial resources and resources are at risk.

You have 10 million and lose 5 million. That is very dangerous.

But many of us do n’t even have 100,000 yuan in hand, so what’s the point if you lose 50,000 yuan?

But if you use your leverage to double your earnings, this is your chance.

Can you buy a house and a car with a 20% return on investment for a year and earn 20,000 yuan? Stop it.

There is no rich man’s life, but he has got a rich man’s illness. Every day, following the rich man shouts that there is risk in increasing leverage. You are already at the bottom of the assets.

So, we ordinary people need to increase leverage, because this is the best and perhaps the only ladder to get rich for the poor, everyone must cherish it.

Finally, let me give you one more sentence for everyone to experience for themselves.

The real secret of wealth, there are two, one is called compound interest, and the other is leverage.