Sunday, July 6, 2014

What is The Law of Leverage




READ THIS WITH AN OPEN MIND 

Henry Hungry is applying for a job.
He walks into this beautiful office and meets a well-dressed fellow behind the desk. Henry smiles and asks him, “Sir, is there a good job for me?”
The man says, “I’m actually looking for a General Manager.
You need to sign a Contract for three years. Interested?”
“Hmmm. Sorry for being upfront, but how much will I earn?” Henry Hungry asks.
The man says. “I’ll let you choose your salary.”
OPTION 1: I pay you P30,000 a month for 36 months.
OPTION 2: I pay you one centavo on the first month and I double it every month for 36 months.
Henry starts calculating.
“Option 2 is interesting. If I choose that, I earn one centavo on the first month, two cents on the second month, four cents on the third month, 8 cents, on the fourth month, 16 cents on the fifth month, 32 cents on the sixth month… after 12 months of working with you, I would have received a total of… sheesh, P23!
Sir, I need the money badly. I choose Option 1 where I earn P30,000 flat each month. By the first year, i’d already have earned P360,000. And after three years, that would be a total of P1Million.

I thus definitely choose Option 1″.
“Okay, if that’s what you want.”
Then the man asks, “By the way, if you choose option 2, do you know how much you’ll earn by the end of three years?”
“I didn’t finishing computing that option. It’s too depressing.” Henry Hungry answers back.
The man calculates in front of Henry Hungry. “On the first month, you receive on centavo, on the second month, you receive two centavos…” He goes on and on, and Henry Hungry doesn’t mind him too much. He’s focused on the P1Million he’ll be earning in three years. He feels pretty good about himself.
Finally, the man looks up and shows Henry Hungry the calculator.
“In 36 months, you would have earned P680MILLION!!!
You exchanged it for 1million.
I’m sorry, my friend, I can’t take you as my General Manager. Your Decision-Making skill is TERRIBLE!”

—>>>there are only two types of income in this world:
Linear (Active) and Exponential (Passive)
***Linear Income is like a piece of bread. You eat and its gone. After that, you have to look for another piece of bread.
***Exponential income is like a seed. You can’t eat it at first, but if you plant it and wait for a while, you can eat as much as you want to.
You have an infinite source of fruit if you keep on planting some of the seeds.
Many Filipinos today have only one income stream – their jobs – and jobs are linear income.

—>>>what then is exponential income?
>>>That’s ABSOLUTELY what a NETWORKER ( Law of Leverage ) earns when he builds a huge organization!!!

>>>That’s what a BUSINESSMAN earns when he branches out, hires employees, and sells franchises!
Hey, income is income.
EARN linear income when YOU CAN!

—->>>because if you want to be RICH, you need to find a way to earn exponential INCOME!!!


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