Leverage point

A leverage point (from Donella Meadows) is a place to intervene in a system, and they differ enormously in power: tweaking parameters (chasing +0.5% yield) is weakest; changing loop gains (your savings rate) is stronger; changing structure (adding a second income engine) stronger still; and changing the system’s goal (from ‘beat the market’ to ‘build ₱X/month of durable cash flow’) is strongest of all. Most financial media sells parameter tweaks because they are easy to publish daily.

First used in: 0.2 · Your money as a system