From My Mattress Money …
A single dollar can actually have multiple uses. One dollar simultaneously earning in two places, is a standard rule of practice by the wealthy called leverage. The wealthy understand that the velocity in which their money grows has far greater potential when it is leveraged. Leverage, in the finance world, is simply any technique using borrowed funds to purchase an asset.
The most recognized form of leverage is the purchase of a home. Using a small percentage of cash as a down payment, one would leverage the bank’s money to fund and acquire the home.
Let’s explore this topic of leveraging home equity and another real world example of how a single dollar can fund two assets at the same time: