Compound interest

I have read this in multiple ways in multiple contexts – compound interest is one of the greatest forces of growth in nature. This applies everywhere – personal life, professional relationships, stock equity, skills, nature – everything is an investment of resources over time. 

The application of compound interest is more straightforward in the world of finance and stocks. But the same principle – investment of resources over time – applies everywhere in nature. 

In essence, your ending point on day one becomes your starting point for day two, and so on. 

Hindsight is 20/20. In some way, I have lived the benefits of compound interest without ever realizing them while growing up. For me, one way this happened while growing up was via academics – studying hard for academics may not have made me an expert in any subject I studied, but it helped develop my work ethic. By the end of it, it was super easy for me to study and/or work for long hours daily over long periods of time, which may be a challenge for someone else.  

Applies to learning something new as well – spaced repetition is superior to last minute cramming. It’s an investment over time. Have ten cumulative hours to learn to play the guitar? Spread them over two months instead of one day for better results. It’s literally that mechanical. Almost makes it a game. Investment of the same amount of resources (e.g., time) is more effective over longer periods of time versus over short periods of time.

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