How to Use Leverage in YOUR Life Today
Let’s discover ways on how to use leverage in your life.
“Give me a lever long enough and a fulcrum to stand it upon, and I shall move the earth.”
This is a quote by Archimedes, underlining the importance of leverage.
A lever is not just a long stick to move large things.
But you can extrapolate the concept, using technology to achieve much greater things with much less force.
I’m going to be looking into some of the most interesting ways that you can use leverage to achieve ten, a hundred, a thousand times more than you could ever imagine.
This is how to use leverage in your life.
The Leveraged versus The Unleveraged
Naval Ravikant says forget rich versus poor, white collar versus blue collar.
It is now the leveraged versus the unleveraged.
And it is no great exaggeration to say that there are two types of people as well, those who understand how to use leverage and people who do not.
There are people working for the hour for the paycheck at the end of the week at the end of the month.
And then there are people who realize that they don’t have to work for a paycheck.
They can use technology and other tools to free themselves from the burden of a paycheck.
Four Types of Leverage
There are four main types of leverage that you can use to increase your output.
The first type of leverage available is labor, this is employing other people to do things for you.
It is a wonderful opportunity to get someone to do something for $5 an hour in the Philippines, and that is actually worth to you, something more like $50 an hour.
The problem with labor, though, is that people are hard to manage.
And the more and more people you get, the more and more complicated it becomes.
The second type of leverage is capital.
This is using money to invest in stocks and companies, and in other investment vehicles.
The third is media.
Now, what is so interesting about media is that you can create a photograph, book, a play, a movie, and it can be watched an infinite amount of times.
It can be reproduced digitally, for absolutely zilch.
That is the beauty of modern technology, you have tools which can influence every single person.
Beyond media, there’s an opportunity to create software, to create games and applications and tools that other people can use to enhance their lives.
If you look at the largest companies in the world right now, they are all based on leveraging software from Google to Facebook to Amazon.
We’re living in the age of leveraged software.
You don’t have to create the next Facebook, but you can create something incredibly simple like a game for training your listening abilities or a digital friend for your dog.
Finally, I think there is another realm of leverage that can be used which is influence.
Building influence allows you much more quickly to obtain traction in the world.
You can look at how influence allows some very influential individuals to create value with actually very little value.
So, no matter what Donald Trump likes to tweet, it is going to be picked up by the media.
And millions of people will be seeing this, influenced by this.
It is going to have an impact on the world.
It’s interesting to see that you can buy and exchange a lot of things.
You can buy a blog, influence.
Or you can hire people with money.
You can pay people to create media software for you.
So, you can see this as a game, building leverage, building different pots of leverage in your life.
So, you can use them in different ways and in combinations to create master products.
You’ve got to see this as a game of leverage where you can level up each one of your pots to create the most impact, generate value to the world.
So, I invite you to consider how to use leverage in your life, and implement some of these ideas.
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