I’m constantly asked how to use leverage in different ways in a wealth strategy – and I’m glad people are asking because leverage plays a huge role in every successful wealth strategy.
Leverage is simply doing more with less.
Here are 3 of my favorite forms of leverage.
I think systems are one of the most important and powerful features of a wealth strategy.
Systems are simply the process or procedures to complete specific tasks. Systems provide the detail of the who, what, when, where and how something will be done.
Think about a franchise. One of the greatest values a franchise offers is its systems. The systems provide all the details about how to market, sell, fulfill and everything else involved in operating that franchise. A franchisee simply has to follow the systems.
Let’s say you invest in rental real estate. You should have systems for:
– Identifying the property to buy
– Purchasing / financing the property
– Renting the property
– Maintaining the property
– Reviewing the performance of the property
Systems don’t have to be complicated. They just need to document what needs to be done in a clear manner. Systems can be as simple as a checklist.
If you are just starting your wealth strategy, you may wonder why you need systems if you are doing everything.
Here’s 2 reasons why you need systems:
Your systems are the place to document the specific details of what needs to be done. They are also the place to document your best practices – your trade secrets. As you learn better ways to do things, document that in your systems.
Your systems enable you to leverage your time by making you more efficient while still getting the results you desire.
Many people start off doing everything themselves, but they usually have a goal to grow their wealth and hire others do the work. If you want to do this successfully, systems are imperative. Systems communicate your specific expectations without you having to be there.
Many people have wealth strategies that never reach their full potential because they are not able to give up control.
With systems, you don’t have to give up control. You’re giving up the specific tasks, but you are still in control. You control the systems.
When your systems are created, used and monitored properly, they will tell you when things are working and when they aren’t working. This allows you to focus your attention where it is most needed – this is a huge form of leverage in a wealth strategy.
#2: Your Wealth Team
Systems definitely take time to create. You don’t have do it all yourself though. This is where your wealth team comes in to play.
One of the best examples of leverage in a wealth strategy, and also one of my favorites, is a wealth team.
A wealth team is a group of advisors, coaches, mentors, employees, vendors and other contacts who assist you in building your wealth.
With a wealth team, you can leverage your time by hiring advisors, coaches, mentors, employees and/or vendors. But the leverage doesn’t stop there. This is just the beginning. You can also leverage your wealth team’s contacts, their resources, their knowledge – the list goes on and on.
Use your wealth team to help you create your systems. Leverage their resources and expertise to add value to your systems.
Once you’ve created your systems, share them with your team members so they can be part of the systems and contribute to the success of your wealth strategy.
Software is a wonderful form of leverage. Software allows us to do more with less every day.
Software can be an integral part of effective systems. When used properly, software can streamline many tasks while providing better information and results.
Software can be the driving force behind the systems. It can notify the who about the what, when, where and how. And, it can provide real time reports about how the systems are working. These reports are what help you stay in control.
How do you know what software to use?
Leverage your team’s knowledge – ask them what software you should be using. And, if you truly want to leverage your software with your systems, have a team member who is committed to integrating the two.
Using Leverage in Your Wealth Strategy
Think about how you use these 3 forms of leverage in your wealth strategy and identify ways that you can leverage them even more.
Focus on your wealth!
Founder & CEO