More about gearing and leverage.

I just wanted to tell you a little bit more about gearing and leverage!

The reason many people choose to follow a savings strategy rather than a gearing and leverage strategy is because they are often taught by their parents and teachers that debt is bad.

The thing is, there are two kinds of debt…good debt and bad debt.

Bad debt is when you borrow money for lifestyle costs, such as cars or holidays. Borrowing money for these kinds of expenses can be dangerous, because they are not investments, they are liabilities.

Good debt is when you borrow money to build an asset base as high and as quickly as possible. When you borrow money to buy a property and you make a sound, informed investment the risk associated with your debt is relatively low.

What I love most about leverage is that it can allow you to earn more money than you could ever earn by working in an ordinary job.

You see, as a person you can only work so many hours a day so the amount of money you can earn is limited.

However, through property, you can leverage your time and finances so that you are able to earn more than you could if you were paid at an hourly rate.

This means that your earning capacity is no longer reliant upon how hard you work. Instead, it depends how smart you work.

At the end of the day though, it all comes down to how you think about money. It is important to educate yourself about developing a wealthy mindset and positive attitude to money and good debt.

Surround yourself with good advisors who are also successful investors and think twice about who’s advice you take.

You can learn more about finding the right advisors and working SMARTER, when you visit:

http://www.RealEstateSecrets.com.au/accountant

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets