Compound interest of knowledge and skill
Most of us are familiar with the term “Compound Interest”. According to Wikipedia, it’s “the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously-accumulated interest.” Simple right?
In the same way, when learning a new skill, for example, playing the guitar, we are not throwing away (spending) what we learnt yesterday. We are building on it, or “compounding” our new skill.
Most people probably have the basic skills, like picking up and holding the guitar. That’s your starting point. Now imagine adding just 1% to those skills every morning for 5 minutes. Or even 5 or 10%. Tomorrow you will build on what you’ve learnt by just adding another percent or 10.
To place this in perspective, let’s add a tangible monetary value to the intangible concept of skill or knowledge. Imagine for a moment that the basic skill you start with is $1000. Adding 1% compound interest per day adds up to $1,347.85 after 30 days. At 1% per day, after a year, it adds up to $37,783.43. Make sense? Now for the crazy number: At 10% per day, after a year, it adds up to $1,283,305,580,313,390,000.00! I don’t even know how to SAY this freakin’ number in words!
Imagine you can compound that 10% of knowledge or skill to a specific area per day. That 10% in the HUGE equation above seems ridiculous, but keep in mind that it’s only 10% added to the knowledge you already have the day before. You may want to expand your online marketing skills, or your drawing or even reading skills. You may want to lose weight or build muscle. Each 20 mins lifting a few weights a day, adds to the day before, you can now lift a bit heavier and build even more muscle the next day. It compounds you see?
Just pick something you would like to be great at and give it a go. For a month, 6 months, or a year. Stick to it and enjoy the compounded results!