Lever is everywhere in life. Reasonable use of leverage principle will help enterprises and individuals to accelerate development and improve efficiency.

There are two kinds of leverage here, one is financial leverage and the other is invisible leverage.

For financial leverage, most financial experts will suggest that all debts should be paid off, and no debt is light.

Perhaps it is a good idea for people who lack financial education to be light and debt-free, but from the perspective of investment and financial management, this suggestion is not wise.

In the world of money, there are two different types of debt, the first is good debt and the second is bad debt.

Benign liabilities are liabilities that can bring us asset appreciation and positive cash flow.

For example, investment-oriented housing loans, although they also need to repay the principal and interest every month, can bring rental income. A good real estate investment project, rental income can offset the loan part, which is a benign debt.

Most of the bad debts belong to credit consumption, and most of the borrowed money is consumed, leaving no assets.

There is also a bad debt, which looks like an asset, but it is actually a liability.

For example, the car consumption loan, when the car lands, depreciates by half first, and then there are various expenses, including gasoline, parking fees, maintenance fees and so on. , not only devalues assets, but also brings long-term cash outflow.

In other words, benign liabilities bring you cash inflows and asset appreciation, while bad liabilities bring cash outflows and asset impairment.

Simply put, good debts will make you richer and richer, and bad debts will make you poorer and poorer.

In the absence of financial and business education, it is really not a good thing to bear a mountain of bad debts.

Bad debts will drain your cash flow. No matter how hard you try, it's hard to leave money, because all their extra money is used to pay off debts.

Benign debt will make you richer and richer, which is why the rich are getting richer and richer.

Leverage can incite wealth. To learn financial quotient is to learn how to use debt as a financial lever to play a leverage role and get twice the result with half the effort.

Real leveraged thinking is not limited to financial markets, but also needs entrepreneurship, workplace and investment.

The lever of learning

In addition to financial leverage, there are some invisible levers that we easily ignore, such as learning and education.

A successful life has two major effects, one is the lever effect and the other is the flywheel effect.

We have heard that "learning" is much more important than "working hard", that is, we should stand on the shoulders of giants, climb high and look far, follow the footsteps of successful people, and learn from the successful experience of top experts in the shortest time.

As we all know, the accumulation of knowledge is a need, and it is the precipitation of time and money. Teachers are resources that we can use. Only by making good use of the wisdom of others can we shorten the time of knowledge accumulation.

In today's era, personal progress is too slow, and only by leveraging transformation can we catch up with the speed of this era.

Platform lever

In fact, the real lever is used to amplify your ability.

For example, when a college student goes to work in a good company, he is actually using the company's resources, such as training, customers, supply chain and so on. Keep learning at work, expand your ability circle and make yourself valuable.

At present, there are many Internet platforms, such as Taobao, JD.COM, Meituan Takeaway, Tik Tok and so on, which sell things on the platforms, in fact, they use the resources of the platforms, such as traffic, IT, logistics and other services. Make yourself bigger and stronger through the platform.

The lever of talent

If you are the boss of a company and do every business by yourself, you are essentially no different from migrant workers, because you consume your own time and energy.

The knowledge, experience and time of professionals who know leverage and leverage can get twice the result with half the effort. Ordinary people in the workplace and entrepreneurs need to leverage each other and achieve each other.

Our investment funds are also based on the wisdom of leveraged fund managers, who are responsible for managing funds, tracking indexes and screening good investment companies, while investors only need to invest in funds regularly, saving the trouble of individual stock analysis.

You are surrounded by professionals, such as lawyers, accountants and real estate agents. Excellent professionals can not only save you time, but also bring you valuable information and make you money.

A person's strength is always limited. If you want to succeed in your career, you must be good at using all kinds of favorable conditions to our advantage, so as to enhance your strength and achieve your career.