THE DICTIONARY
Mental models for exponential thinking. Each concept visualized, explained, and actionable in 3-5 minutes.
Linear vs Exponential
The fundamental difference between adding and multiplying. 1% daily = 37× yearly.
Pareto Efficiency
20% of inputs create 80% of outputs. Focus on the vital few, ignore the trivial many.
Residual Income
Work once, earn forever. Decouple time from income by building assets that pay.
Work Smarter Not Harder
Systems turn 20% success into 80% success. Same effort, 4× the results.
Growth Mindset Examples
Fixed mindset sees failure as identity. Growth mindset sees failure as data. Same event, opposite trajectories.
Inflection Point Meaning
The moment when the rate of change itself changes. Where linear becomes exponential.
Risk Mitigation Examples
Reduce exposure before events happen. Asymmetric protection: small costs prevent catastrophic losses.
Feedback Loop Examples
Outputs become inputs. The fundamental pattern behind all compounding systems.
Negative Feedback Loop
Self-correcting systems that maintain equilibrium. Deviation triggers correction.
Positive Feedback Loop
Self-reinforcing systems that amplify change. Small inputs create massive outputs.
Law of Diminishing Returns
Adding more input eventually produces less output. Know when to stop and redirect.
Cognitive Dissonance Examples
The discomfort when beliefs clash with actions. Your integrity alarm signaling where to grow.
Self-Actualization Meaning
Becoming who you really are. The peak of Maslow's hierarchy—full potential realized.
Free Cash Flow Meaning
The cash left after expenses and investments. The ultimate measure of financial health.
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