40 - Understanding Leverage
We often hear the word “leverage” used in financial contexts, but its full scope is often not fully understood. Today we examine it in depth and offer some real life examples of how leverage can work for or against you.
In this episode:
Understanding the connection between appreciation and inflation [1:00]
How does leverage work in financial situations? [5:00]
Examples of where leverage is used [9:00]
How leverage is utilized [13:00]
When leverage goes wrong [21:30]
How private equity companies get big returns [30:00]
Where the average consumer can use leverage wisely [31:00]
Leveraged home example with 3.5% down [43:30]
A personal story showing leverage in action [52:30]
If you prefer to follow along on YouTube, watch here!