No matter what we invest in, be it stocks, crypto, real estate, the ultimate goal is to achieve financial freedom.
The traditional education system teaches us to sell our time, inherently a low leverage activity.
To break free, we need to build high leverage in our lives.
In school, we were always told to study hard, get a good job, work hard, settle down, produce the next generation, and then kick the bucket.
I used to see this as sound advice. But as I grew up, I realised it’s total bu**sh**.
When we work, we are trading our most valuable resource, time, for money. Time is an asset that all of us have, making it low leverage.
Leverage represents the number of outputs that you get from an input. Simply put, it means getting more for doing the same amount of work.
This is not something that is taught in school.
To build greater leverage, we must use our time.
The problem is most leverage building activities feel slow at the start. At times, you’re gonna feel like no one cares about what you have to say.
Choose your leverage
There are 3 types of leverage:
Labour
Money
Thought
Don’t have money?
Then combine labour and thought to build a brand.
Leverage can be built in a multitude of ways:
Systems
Brands
Efficiencies
Time is the building block of all leverage, but you can shortcut it with capital or labour.
Think long-term over short-term.
Just like investing, leverage compounds over time. The more I write, the more I build my presence.
Conclusion
The next time you embark on an activity, ask yourself:
Is this activity creating leverage for me?
It’s okay to sell your time, especially in the early years when you’re still laying the foundations.