Day 19 — Leverage

1

min

December 2020

This concept is popping up more frequently and for good reason. Understanding how to attain leverage allows you to produce disproportionate outputs from your inputs. The 80/20 principle is just an example of this. The three forms of leverage that Naval Ravikant talks about are labor, capital, and products.

Labor is simple — hiring people to work for you. If you charge $5k for a product and pay $1k for someone to build it, you are leveraging labor in two ways. One is arbitrage (exploiting price differences) but you are also adding more input & time toward your goal.

Capital is also simple — investing or pouring in resources to different assets to grow while you sleep. Stocks, real estate, crypto, & venture capital all fall into this category.

The more interesting form are products, and I would add personal branding to this category. Automating tasks is probably the easiest place to start with. More people can now use software, like Zapier, to automate tasks & leverage their time more efficiently.

The second part of the products category is media where you can use these different outlets to create a personal brand. This is an asset that holds high leverage for various reasons. You can use your following to earn income, learn faster, build communities, teach others, and so much more.

You can convey your message through writing, video, or audio. Writing turns into essays or tweets. Video turns into Youtube or Tik Tok. Audio turns into podcasts.

Find the medium based on your skillset and build some leverage.

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by Amaan