❤️ How to pick a good career – Compound Effect and Leverage

Jul 23, 20242 min read

People often ask me what a good career is

I think it consists of 4 parts

🔶 Passion – What you enjoy doing

🔶 Compound Effect

🔶 Leverage

🔶 Money - It pays you well enough

Today I will discuss the compound effect and leverage as passion and money are subjective

1. A good career should be accumulative.

For example using recruitment and insurance/property sales, the longer I stay in my industry, the more clients I accumulate, the easier I can close deals.

Avoid going into jobs that are highly repetitive and non-accumulative such as a burger flipper or cashier.

You want to accumulate as much value as you age.

🍷 Be a bottle of red wine that goes up in value.

2. A good career should have a high form of leverage.

⌛ Using recruitment as an example, if I am an individual contributor, it is not a good form of leverage because I am always trading time for money.

Once I close a deal, I get the commission this month. But I need to constantly worry about next month.

👵 As I grow older, I realise I am not as fast and energetic as I was fresh out of university.

💸 Trading time for money is not an ideal way of making money and wealth.

But some would argue if your ticket size is big enough, it would still be a good career.

For example, if I sell luxurious property/C-level candidates, I only need to make 5-7 deals a year and I can still be off the rest of the time.

📉 I still believe this is not a good level of leverage because I caught a fever last year and was sick for 2 weeks. I could not generate any revenue while I was sick for that 2 weeks.

📈 However, a good form of leverage would be a career like insurance agents or recruiters that leads a team, getting override of their subordinates.

They get a percentage cut of their junior’s sales.

So the more juniors they hire, the more commission they can earn without working.

👩‍💻 Another good form of leverage would be selling products/knowledge.

You just need to produce once and you can leverage the internet to sell it.

Technology is the highest form of leverage.

✅ What do you think?

✅ What other forms of leverage can you think of?

✅ What are the elements of a good career?

✨ For more career & personal growth tips, please visit my site at

www.thenicolehui.com

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