Leverage is an essential tool for building wealth. Sorry Dave Ramsey. AJ explains the What, Risks, How and Why’s of leverage.
What is leverage
“The use of credit to enhance one’s speculative capacity” Mariam Webster’s dictionary
Borrow money to attempt to make more money
Risks of Leverage
- Risky
- Costly
- Complex
How to leverage
- Trade on Margin
- Buying a company
- Mortgages
Why leverage
- Higher investing power
- Tax savings
Author
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After attempting college, AJ joined the Marine Corps. When he left active duty, he worked in retail for a few years before returning to college. Several years later AJ was awarded his Bachelor in Science in Computer Science. Soon after, AJ began working in the tech industry as a Junior Developer. AJ continues to work in tech, however, he began to cultivate a passion for personal finance. For AJ, the concepts began to click and he felt a need to help others understand how to be financially free. If AJ can do it, any Idiot can.