Real estate investors are very fond of Leverage: the ability to control a higher asset value by investing only a fraction of it in capital and multiplying returns by a factor of 4 or 5 in the process.
There’s another kind of leverage that can have exponential effects on your life. It’s called Decision Leverage.
Here’s how it works: you make a high leverage decision once and it impacts your life going forward. Its effects cascade and compound over time. For example: making the decision to automatically transfer 10-15% of your income to a savings or capital account every month. You make the decision once and it will chance your financial life. Plus, momentum and inertia now work for you instead of against you. Another example might be the decision to get enough sleep every night. Yet another might be to read 20 pages a day every day (that adds up to 50 books a year by the way).
What other high leverage decisions can you think about that can have impressive effects on your life?
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