The concept of exchanging "Time for Money" is really limiting. There is that much we can do with our 24-hour, so we will have to look for other ways and means to add to our income, to achieve the goal we have set for ourselves to create wealth.
If we can find a way to leverage our time and effort our goals will be achieved faster and easier.
The dictionary explains the word "Leverage" as the mechanical advantage of a lever. Lever, an old French word means "to make lighter" and................Leverage in financial dictionary means - "Use of borrowed funds to increase purchasing power and, ideally, to increase the profitability of an investment."
Scenario:
Net Operating Income of $10,000 per year. If purchased with all cash, Investor A's annual Rate of Return is 10% ($10,000 ˜ $100,000). If she leverages the investment by borrowing $75,000, her return on equity may be higher. If the debt cost is 8% ($6,000) annually, the leverage results in a return of 16% ($4,000 ˜ $25,000). However, if the debt cost is 12% ($9,000), the leverage is negative because it reduces the return on equity to 4% ($1,000 ˜ $25,000).
Leveraged Growth
Working Smart Not Working Hard
In 1885, Dr John Pemberton developed the now all famous Coca-cola, a carbonated drink. Both small town and big city dwellers enjoyed carbonated beverages at local soda fountain or ice cream salon. Often housed in drug stores, the soda fountain counter served as a meeting place for people of all ages. But.......this is limiting time, effort and location.
In August 1888, Asa Candler paid $2,300 in cash to buy over the rights of Coca-cola. Two young attorneys from Chattanooga believed they could build a business around bottling Coca-cola. In a meeting with Candler, they obtained the exclusive rights to bottle Coca-cola across most of the United States....... for the sum of $1. By 1909, nearly 400 Coca-cola bottling plants were operating.
By 1920, the ideas and zeal of the 2 young attorneys fueled steady growth.
Six-bottle cartons 
were a huge hit in 1923 and by end of 1920s, bottle sales exceeded fountain sales. Before bottling people had to go to a local soda fountain to order a coke - or there is no coke. Bottling changed all that, consumer need not go to a soda fountain to enjoy a coke because they could buy a six-pack and bring the fountain home with them. It has created a world of convenience...this is leveraging of time, effort and location.
Working Smart Not Working Hard
The
story
In 1885, Dr John Pemberton developed the now all famous Coca-cola, a carbonated drink. Both small town and big city dwellers enjoyed carbonated beverages at local soda fountain or ice cream salon. Often housed in drug stores, the soda fountain counter served as a meeting place for people of all ages. But.......this is limiting time, effort and location.
In August 1888, Asa Candler paid $2,300 in cash to buy over the rights of Coca-cola. Two young attorneys from Chattanooga believed they could build a business around bottling Coca-cola. In a meeting with Candler, they obtained the exclusive rights to bottle Coca-cola across most of the United States....... for the sum of $1. By 1909, nearly 400 Coca-cola bottling plants were operating.
By 1920, the ideas and zeal of the 2 young attorneys fueled steady growth.
Six-bottle cartons 
were a huge hit in 1923 and by end of 1920s, bottle sales exceeded fountain sales. Before bottling people had to go to a local soda fountain to order a coke - or there is no coke. Bottling changed all that, consumer need not go to a soda fountain to enjoy a coke because they could buy a six-pack and bring the fountain home with them. It has created a world of convenience...this is leveraging of time, effort and location.
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