The most powerful force in the universe is compound interest.
A bit of a breather in my blog updates of late 🙂
Quite simply I haven’t taken heed of my own advice and actually procrastinated greatly due to other commitments taking precedent. Apologies if you have been missing the updates but good news, I will be re-establishing as a minimum 1 blog per month.
[subscribelocker] So moving onto my current topic of choice ‘compounding’. As the image above dictates, compounding is a very powerful concept when applied to growth of our money over time. So much so that Einstein credited it as being the eighth wonder of the world!
However today, I don’t want to concentrate on the implications compounding has on our money, more how the concept can be applied to all aspects of our lives for improved results. Whether it is growing your money, learning a language, losing weight, everything can be compounded for amazing results..
Compounding, in it’s simplest form consists of small regular steps to create a longer term, greater end goal and its a principle we can apply to so many aspects of our lives.
One example is going to the gym. We go to get fitter. But sadly it doesn’t happen in one session. But, if we stick to it, we are compounding our efforts each and every time so months later we have a decidedly better fitness level. I use this example a lot but its a great illustration of the point. When I ran the marathon I couldn’t run 26 miles in my first run. I had to build gradually….several runs at 5miles…I then gradually got fitter…then 10 miles…then after 6 months I was touching the 15 mile mark…those small yet regular efforts had compounded my fitness…and seeing and feeling my body respond and adapt was quite amazing and highly motivational. This gradual development is a key reason of being in an educational / mentoring / coaching role as a large amount of my job satisfaction comes from seeing people achieve results as a by product of their consistent, compounded efforts. And this can be highly infectious, once you see results in one aspect of your life I can assure you that you will be highly motivated to replicate this in many other areas of your life.
On the flip side however, one area I haven’t used compounding to benefit me is with learning to speak Spanish. I have been sporadic with my efforts to say the least and not gone to the small regular effort that is needed to see development. This is an area I need to compound over the next few months if I am to see the results I desire. And we can no doubt all think of many a time where we have wanted to do something, but not backed it up with the action. More often that not, it ends with a half hearted attempt and no real progress is made. This is then often accompanied by excuses as to why we didn’t achieve what we set out to (I talk from experience here!).
So give compounding a try. It starts with a goal. Break that goal down into smaller sub goals i.e. your small steps, then START! And finally, and most importantly, we must persevere!
So go and give compounding a try. You will be astonished with the results and will no doubt start applying this technique to many areas of your life.
Best wishes as ever