Leverage

A couple of months ago I shared with you that I still drive my very first car.  She’s approximately a decade old now, but she still hasn’t had any engine problems and I haven’t made payments in over five years.  Oh, and one more thing, she’s still shiny.

Some people see cars as an investment.  Maybe they think that pretty little mode of transportation is going to become a classic and one day they’ll be able to sell it for a nice profit.  Most of us, however, aren’t that lucky, and unless we want to retire in our cars (as in sleeping in them), our cars are not an investment.

My mom really enjoys the televisions show "Leverage." Hedge fund managers on the other hand tend to enjoy the financial type of leverage. You've probably heard of terms like "Leveraged Buyouts" on TV, but most of us haven't really though about what leverage means in that context. So, when talking about finance, what is leverage and is it good?

Leveraging Things