There comes a point at which most people stop and understand that the only thing that really advantages them is something that multiplies inputs. It doesn’t matter what that thing is, but just living and working for a→b outcomes quickly seems unattractive.
I consider time to be the only true constant. Everything comes back to it. Without question it is the most valuable resource in existence. This is what gives leverage importance. Leverage gives you the possibility to compress actions into smaller amounts of time. Using leverage on your investments? You could easily make a 5 year return in one month.
You can add leverage to what you are already doing in so many ways. Building your network, writing publicly (👋🏻), building equity, learning new skills, and more all add a multiplier effect to your time.
The full benefits from leverage are not immediately obvious. In my experience the secondary impacts of leverage are often masked by the initial thrill of an outsized gain or loss. Successful use of leverage early in life will more than likely pay off exponentially later in life.
So why doesn’t everyone make heavy use of leverage? Risk.
Leverage is never a one-way street. You always have to give something up to pursue an exponent. This may simply be an opportunity cost in the case of learning, or could mean complete financial ruin if playing with derivatives trading. You need to commit something initially -that initial seed to be multiplied. This is easy to visualize if investing, but it pays to keep this in the front of your mind throughout every day.
Pursuing extreme leverage can also end up stagnating or burning people out. There are countless stories of founders swinging for the fences, hoping to change the world only to come up short. This has real impacts to quality of life, freedom, and happiness. I can attest to this a bit. 5 years ago I would not have pictured still being at my current station in life. But as with most things, the number of at-bats matters. Just because the first few tries to reach escape velocity exploded, there is nothing that is truly limiting.