Do THIS To Get Ahead

Makes the compounding effect even better

They say that compounding interest is the eighth wonder of the world. Over time, it compresses your activities and accelerates your output. Instead of your output being 1:1 with input like on a linear scale, the results of your efforts produce exponential returns.

Compound interest is an accelerant, but being purposeful in activities makes the end result even more powerful. If you concentrate your efforts in these areas, your output will be monumental.

High leverage activities

High leverage activities are the things that effectively multiply yourself. When you have a high degree of leverage you control or influence more than you could on your own. It’s doing one thing but controlling the impact of many others.

Examples of high leverage activities are hiring staff to advance your projects, investing in systems, or buying income-producing real estate.

In each of these examples, you receive a high output for minimal effort. When you hire staff, you set the objective then leverage other people’s time to accomplish the task. Your time has been multiplied. When investing in systems you only have to create the system once but you can use it over and over again. Income-producing real estate is high leverage because you only need a small percent of the purchase price to control the property and receive the income it generates.

Long Tail Activities

Long-tail activities are actions that allow you to benefit from them over a much longer time span than their initial input. The “tail” or lasting effect of the effort is long.

Examples of long-tail activities are writing articles like this one, recording informative videos, writing books, and most forms of long-term investing.

In real estate, for example, you purchase the property once and earn income from it for as long as you own it. Similarly, if you write a book, you put in the effort one time but get paid royalties ad infinitum. Once you record a video, you no longer have to continuously re-explain the same thing over and over again, you can just end your video recording

High leverage and long-tail activities deliver an output that is totally disproportionate to the amount of input. Once you put these actions in place the tail or the number of residuals you get on that single effort carries out for a very long time.

The point here is that you want to use compounding efforts to optimize your options. Having options gives you the maximum freedom of your time and mobility.

Focusing on compounding efforts and compounding interest allows you to master this wonder of the world for your own benefit.