“Leverage” , The Keyword for a Better Life
“Leverage”, one of the most important word you should understand in your life, is your key to success. Its applications far exceed its commonly uses in physics and finance.
Your achievements in life are greatly tied to how well you understand the use of “Leverage”.
Before we begin, let’s look at the definition of “Leverage” first.
Leverage: the action or advantage of using a lever — Cambridge Dictionary
“Action” or “Advantage”!!!
Yes. If we use “Leverage” in the right way, it will give us an advantage to be ahead of the game. However, if we misuse it, it will merely be an action or worse, it can bring disastrous results!
So, what does it mean by “Lever”?
More importantly, how can it benefit us?
Let’s drill deeper!
Lever: something you use to try to persuade someone to do what you want or to get the result you want — Cambridge Dictionary
OK. We are now clearer what “Lever” is.
“Lever” is something we use to persuade someone.
I will interpret “something” here as “Money” or “Words”.
What do we normally want from life?
“Happiness”!!!
which usually is increased by having more “Free Time” and “Money”.
So, we are trying to use “Money” or “Words” to persuade someone to create more “Free Time” or “Money” for us so that we can create more “Happiness” in our life.
Great! We now have all the elements for “Lever”.
Let’s explore “How we can take advantage of using a lever”.
“Money”
There are millions of ways to use our money. It is the easiest tool used to persuade someone to do you a favor in modern society.
How to use “Money” to persuade someone to create more “Free Time” for us?
Thanks to specialization and our laziness, we are actually already very good at leveraging “Money” to create more “Free Time” for us.
Every time we hire someone for their goods or services, we are creating more “Free Time”.
For example, you call a taxi or Uber so that you can arrive your destination faster (which means more “Free Time”). Also, the time you spend in the vehicles is "Free" comparing it to driving by yourself.
When you order food from a restaurant, you save not only the time for cooking, but also the time you have to spend on learning how to cook that particular cuisine.
There are millions more examples in our daily life.
Takeaway: If you have better use of your time, never hesitate to spend money to let somebody to do the work for you.
How to use “Money” to persuade someone to create more “Money” for us?
This is an interesting question. The most straight forward answer is to be an entrepreneur and open a company. (AKA using other people time, “OPT”)
In theory, If you spend X to hire people to work for you and earn X+1 revenue, the extra 1 in profit is your “Money” persuaded someone to create more “Money” for you.
Why isn’t everybody doing so?
Because it involves not only knowledge in running a business, but also the risk of losing the initial capital!
What else can we do with our money to persuade someone to create more “Money” for us?
We can lend it out to somebody who is in need. They will pay us back with “Interest”.
The more “Interest” you can make in the deal, the more persuasive your “Money” is to the person who borrow it from you.
Again, there is risk of losing the initial capital if that person runs away.
Takeaway: With acceptable risk, sufficient knowledge, and the right choice of people to do the work, your “Money” can earn you more “Money”.
“Words”
Words is the best tool for persuasion. Words is the foundation of our civilization. Without words, knowledge cannot be spread and we probably are still living in the Stone Age.
How to use “Words” to persuade someone to create more “Free Time” for us?
This is “The Art of Exploiting Friend and Family!”.
Just Kidding!!!
However, asking somebody (usually people closest to you) to do you a favor usually means asking that person to do the work and create “Free Time” for you.
When you ask somebody to do you a favor, it does not necessary involves any tangible return (such as money).
If you are able to choose the right “Words” which sound polite such as “Can you”, “Please”, “Thanks”, people are usually willing to help you with small thing without any tangible return which can save you “Time”.
For bigger thing which requires certain degree of effort, if you can praise people with the right “Words” which make them feel good such as “You are the only one who I know is capable to do it, can you please…”, they will normally still be willing to do it for you without any tangible return.
If you are feeling bad in frequently asking people to do you a favor, just actively help them back when they are in need. This is what friend and family for!
Takeaway: Do not do everything by yourself, ask for help and save yourself some “Time”.
How to use “Words” to persuade someone to create more “Money” for us?
“Words” is Magic, and this is “The Art of Selling”.
If you can create dreams, hope, ideas using “Words” that suit people needs and passion, you can make them give us money for our products, invest in our ideas or work harder for our company to create more “Money”.
For example: “Good job” , “Well done”, “You are the best” are free of charge!
You spend literally nothing other than “Words” to motivate your employees to work harder for you which in turn create more revenue for you.
Takeaway: If you know the right “Words” to pitch your customers and investors or in praising your employees, money will come naturally to you.
What “IF”
What if you have already master the use of “Words” and “Money” as a lever?
Let’s go back to the example of being an entrepreneur and open a company in the “Money” section, you will see that you are possible to create wealth out of nothing.
First, your choice of “Words” creates ideas and visions that people will invest.
Then, you use those “Money” to employ the right people to do the work.
After that, you motivate your employees with the right “Words”
Surprise, Surprise, you have make yourself a fortune out of thin air!
This is the power of “Leverage”!!!
(Warning: It is easier said than done! Think twice before opening a company.)
Final Words
"Leverage” make “Good” into “Great”.
Knowing how to use “Leverage” wisely can bring unimaginable benefit.
There are tons of opportunities in our daily lives to take advantage of using leverage.
By employing professionals, looking for investment opportunity, seeking for help, and being a salesman, your chance in having a great success will definitely improve.
Hope this article helps and thanks for reading!