Wealth Hacks of the Elite #3: Leverage

Yeah, a $1M is cool but have you seen $1M with 100x leverage?

This series has become our top performer.

In hindsight, it’s not surprising and I should have started exposing these “wealth hacks of the elite” much sooner.

But you live, and you learn + I have a much larger audience now than when I started Wealth Systems over a year ago thanks to meeting cool people on X dot com, the everything app.

It's crucial to emphasize that these "hacks" are legal and strategic, not about getting rich quick or engaging in unethical practices. The key takeaway is that the wealthy use a combination of knowledge, planning, and expert advice to build and preserve their wealth.

In our first edition we discussed cross-border loans. I was told not to write that article by friends of mine who are professional types (CPA, financial advisors) and that’s why I opened with that topic.

Sure sign I was over the target.

That post blew up.

Then, in the second edition of Wealth Hacks of the Elite, I blew up my own spot and disclosed the options writing tactics we use in McDonagh Family Office to generate income on weekly and monthly basis.

Fair is fair.

Now we’re going to explore a topic the elite know a lot about: leverage.

Then we’re going to demonstrate how the wealthy source and structure various forms of leverage. Again: fair is fair.

There are many types of leverage that we need to navigate, too.

• Financial Leverage: Borrowing money to amplify investment returns. This could include mortgages, margin loans, or business loans. We will highlight how the wealthy use debt strategically to acquire assets and grow their wealth, while acknowledging the risks of over-leveraging.

• Operational Leverage: Using fixed costs to generate higher profits. This applies to businesses that scale well. In this section we’ll explain how the elite build systems and processes that allow them to increase revenue without proportionally increasing expenses.

• Network Leverage: Utilizing relationships and connections to access opportunities and resources aka how the elite cultivate powerful networks that provide them with advantages in deal-making, information gathering, and career advancement.

• Time Leverage: Delegating tasks and outsourcing to free up time for high-value activities aka how the wealthy maximize their time by focusing on their strengths and leveraging the skills of others.

• Technology Leverage: Using tools and automation to increase efficiency and productivity aka how the elite adopt cutting-edge technology to gain a competitive edge and streamline their operations.

Lot of ground to cover. This will be our most in-depth and tactical Wealth Hacks yet!

Leverage 101, 201 & 301

First, lets unpack at a high-level the different dimensions of leverage I called out above.