'Infinite' Leverage
A simple equation to understand the magical buzzword - leverage
“Give me a firm place to stand and a lever, and I can move the earth.”
– Archimedes
TL;DR - We should measure work in terms of outputs. Leverage is the best & only real way to increase outputs. Because leverage is the difference between what you put in and what you get out, it’s likely that the “hardest working person” could, in theory, be the laziest. Because that person is using leverage the best, they are putting as little in and getting way way way more out. When leverage creates more leverage. You get Infinite leverage.
Now that you have the answer, let me walk you through it.
Do you have work to make money?
Do you think you can out-work somebody? Or maybe even most people? Do you take pride in being a hard worker? Let me go ahead and completely dismantle that false belief you have. Be mad at me now, but thank me later.
What does it mean to say, “Nobody can outwork me”, well..
…What is work?
Is it.. Work = Force x Distance - not really useful
Is it… Work = Time spent working - not really useful
It’s not useful because many people work all the hours that they are awake - we are all limited by the hours in a day.
Okay, so we have to work with the limiting factor of time, only 24 hours in a day.
Is it… Work = Effort expended?
It’s not that useful because you don’t win in business by how hard you work. You win in business by winning
So work is not:
Force x Distance
Time spent working
Effort expended
We need to know what it is, because work is (assumption) what we need to do to make money and ‘win’ in business.
Work = Outputs.
Outputs = Volume x Leverage
Outputs = how much you do something multiplied by how much you get each time you do it.
So who outworks who is based on who can work faster, and more effectively than anybody else. Because it’s not about effort and we all have the same amount of time, we settled on the fact that:
Work = Outputs
Outputs = Volume x Leverage
How do we work more than our competition? We increase our Volume and/or we increase our leverage over the same 24 hours in a day.
Insert Leverage
Volume x Leverage / Time = Work Rate.
This is the true equation for increasing how much we work, and saying to somebody “Nobody can outwork me” We now have discovered that what you really mean is that nobody can produce as much/many outputs as you can.
Saying “nobody can outwork me”, and backing it up with time as your measurement is just your ego.
Saying “nobody can outwork me”, and backing it up with effort as your measurement is just your ego.
How can we get more outputs?
We increase volume(activity) and we increase leverage.
Cool Joss → what the f*ck is leverage? Stick with me, I’ll get there.
Doing more volume (activity) is capped by two things. The same two ego traps that we outlined earlier effort & time. Because time is fixed, and how much human energy we have really varies way less than we think it does, these are not the inputs we should be thinking about.
How much leverage you have, is limitless.
So if you want to outwork your competition and truly be the “hardest worker in the room” you must out-leverage them.
Cool Joss → what the heck is leverage?
The money equation
Leverage is the difference between what you put in and what you get out.
If you want to make more money? = do more work = more outputs = higher leverage.
Because time is fixed (same 24 hours in a day), we make more money, by trading our time for more outputs.
Cool Joss → but what is Infinite Leverage.
Infinite leverage
TL;DR - Infinite leverage Is when you create leverage, that compounds on itself.
If you aren’t familiar with the concept of compound interest, I would explain it to a 12 year old like this:
When you plant a garden and the plants produce seeds, those seeds grow into new plants. The next year, not only do you get new seeds from the original plants, but you also get seeds from the plants that grew from last year's seeds. The number of plants keeps increasing, just like compound interest grows your money.
Infinite leverage is when you create leverage, that creates more leverage. With little to no input from you. Scary. This is were we get to start talking about money printing machines.
Infinite leverage is about using small or limited inputs/resources (aka time/effort) to achieve disproportionate outputs. If you can create said leverage you can maximize the effect of a small amount of time & effort. This leads to huge outputs, huge amounts of work, and lastly — huge amounts of money (please see earlier equations if you are confused).
I should note, that infinite leverage is a theoretical concept, in reality, there are practical & systematic limits to how much output we can have. Those limits are defined by the laws of nature itself and physics.
Would you like the amount of money you make be only limited by the laws of nature itself and physics?
Me too.
The logical next question is - how do I actually tangibly create infinite leverage? That answer is COMING SOON. (that’s a cliffhanger, in case you missed it)
Can’t wait for the next!! The how to apply it! Oss