Dan Lok Show Rich Poor Wealthy Rich

What really separates the rich from the poor and middle class? Is it money? Education? Location? Time?

The answer isn’t any of those things. I live in one of the most prestigious and expensive buildings in Vancouver and just about 10 minutes away is one of the poorest neighborhoods. We’re all in the same city, with the same 24 hours and same opportunity. So what really separates us?

I believe it’s one word: leverage.

Rich people use leverage and poor people don’t. Now there are many, many forms of leverage. Let’s first define it. Leverage is getting something done with less effort. Just like a lever, right? You’re using the least amount of effort to lift something very, very heavy. So what are some types of leverage you can use?

Leveraging Time, Knowledge And Money

The first form of leverage is OPT, other people’s time. A CEO hires employees. He’s leveraging other people’s time to perform certain tasks for the organization. Another example is hiring someone to mow your lawn because you hate doing that. Your time is worth more.

The second form of leverage is other people’s knowledge. Because as a person, you could only do so much, you could only learn so much, you could only know so much. Rich people consult with a lot of advisors who have specific knowledge. You can hire a consultant or project manager instead of doing the work yourself.

So now you’re using other people’s time and you’re hiring specialists. The third form of leverage is other people’s money, OPM.  Rich people buy a piece of property, put a down payment, and borrow from the bank to buy an investment. It’s similar for an entrepreneur. They raise capital from investors.

There’s an infinite amount of money out there that’s floating around but people don’t know how to use it. Money goes to people who know how to multiply it. And that’s why the rich do get richer. Which leads us to the final forms of leverage.

Leveraging Relationships and Technology

Wealth comes from relationships. Rich people are very good at leveraging relationships. If there’s someone I want to meet, I would ask my friend, “Hey, can you make the introduction? Can we do some business together?”  

You want to leverage other people’s relationships, OPR, to do a potential joint venture with someone else who already has an existing customer base. That person can endorse your product, your program, or your service and then you’re leveraging the relationships he has built for years with his customer base. In return, he gets a commission.

And finally, rich people also also leverage technology. Automation and software, any of the tools that’s out there that could help you to be more efficient and more effective.

It doesn't matter what business or what industry you’re in. What matters is you study and learn how to use all these forms of leverage. The more you know how to use them, the more successful and wealthier you'll be. Click To Tweet

I’ll leave you with one quote by John D. Rockefeller: “I’d rather have one percent effort of 100 people versus 100% of my own effort.”

 

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