Put in 1x effort to get 10x returns

One of the two core secrets of capitalism is leverage thinking.

What is leverage thinking?

Simply put, it means that a person puts in the same effort as others but gains multiple times the return.

This contradicts the traditional idea of “you reap what you sow.” Leverage thinking allows me to put in 1x effort and achieve 10x returns.

If you think leverage thinking is just a scam, it only shows that your vision is too narrow and you lack an economic perspective.

Here’s a simple example: Jack Ma and a cleaner wake up at 6 a.m. and work the same 12 hours a day. Why does the cleaner earn millions less than Jack Ma? Because their thinking patterns are different.

In fact, leverage thinking is not only common in finance but also quite prevalent in daily life.

Network Leverage

There is a popular term online, “Man Keep,” which can be translated as “Relationship Management,” and some people pronounce it as “Maitie,” meaning someone skilled at utilizing, managing, and cultivating relationships.

In the new era, building a strong network has become increasingly important.

If you can enter a high-quality network circle, it means you have a vast relationship network. Conversely, if you remain an outsider, you will be eliminated.

Stanford University’s research center once published a report concluding that: 12.5% of a person’s lifetime earnings come from their own knowledge, while 87.5% come from their relationships.

Therefore, how to effectively utilize the “relationship leverage” is also a major life lesson.

Time Leverage

The “80/20 Rule” is certainly familiar to us; it is also recognized as a time management principle.

Initially applied in economics and management, it later became a widely accepted time management rule.

To manage and utilize time efficiently, we need to learn to apply the “80/20 Rule”—spending just 20% of our time can generate 80% of the results. Conversely, the least efficient use of time, where 80% of the time is spent, only produces 20% efficiency.

In simple terms, we should dedicate our most alert and high-efficiency hours to the most important tasks; the remaining large blocks of time for studying, working, or relaxing can be used for relatively easier activities.

For each person, the 20% of high-efficiency time varies—some are most productive in the morning, others in the afternoon or evening. Factors like mindset, blood sugar levels, and energy state also play a role.

Although statistically, precise 80% and 20% are unlikely to occur exactly, this law still helps us manage time effectively through “time leverage.”

Capital Leverage

Capital leverage is also called “debt ratio,” meaning the higher the debt ratio, the greater the leverage effect.

However, the multiplier effect of capital leverage is two-way—if a company uses borrowed funds and profits less than expected, losses can occur, and in severe cases, operations may be interrupted, making shareholders’ investments worthless.

On the other hand, if a company profits more than expected from borrowed funds, shareholders’ returns will double.

In fact, capital can also be scaled up—investing 1 million yuan in a year and earning 500,000 yuan in profit is not impossible.

Today, money is no longer the scarcest resource. If you want to raise 1 million yuan, it’s not too difficult. The key is to have a complete business model of your own, then find investors to accelerate your business!

Finally, let’s talk about the core of leverage thinking—integrating resources and maximizing resource utilization.

Resource integration means seeking cooperation and achieving a win-win situation.

Simply put, it’s about what resources both parties can offer each other. Only when you have certain market exchange value can you have the capital for cooperation.

Maximizing resource utilization means not only fully understanding your own advantages and resources but also being good at leveraging and amplifying them.

Especially resources at your core leverage points—by operating and infinitely expanding these resources, you can earn multiple profits. **$RVV **