WEALTHYMIND

How money works: Leveraging

July 13, 2010


How money works: Leveraging

How money works: Leveraging

In our high school physics subject, we encountered different kinds of simple machines which are used to help us achieve our work efficiently. One of the best forms is the lever. By definition, a lever is a tool that uses a fulcrum to produce a maximum result with a minimum effort. Examples of levers are the hydraulic jack and the seesaw. In replacing a wheel, for instance, a hydraulic jack is used to lift the car. If the lever arm is longer, the effort needed becomes less.

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