Learning About Leverage Will Save You Your Valuable Life Years
What Is Leverage?
Leverage in simple words is a Force Multiplier.
One achieves greater output with the same input when they use leverage.
This is how I would teach a young person about the forms of leverage to apply in life.
Labour
A person alone can do ‘X’ amount of work in unit time.
On hiring 5 people, ‘5X’ the work can be done at the same time.
Capital
$500 invested at a 10% compounded annual return rate will return $39,086 in 5 years.
$5000 invested at a 10% compounded annual return rate will return $390,859 in 5 years.
Code
Work 8 hours a day, and deliver a product/ service to 3 people.
Write 100 lines of code and deliver a product/ service to 1 billion (with 0 marginal cost of product replication).
Content
Teach in a classroom and help 50 people learn a skill.
Write on Medium & record a YouTube video, and help 100 million people to learn the same skill.
