100-Day Writing Challenge: Day 3: Why Compounding is Great
Not just in terms of money
December 3, 2023
You’ve heard of Warren Buffet who is probably known as one of the most successful investors of all time.
You’ve heard his name pop up thousands of times in any book that talks about finance.
When you hear the word ‘compounding’, your brain starts thinking about portfolios, investments, shares, and returns.
While it’s true that compounding offers all those benefits, it’s not just limited to the field of investment only.
The concepts of compounding can be applied to any field.
Compounding means to combine.
And that’s where its benefits lie.
Small things add up together to make one big thing. It’s this working of compounding that offers so much.
Suppose you take up running for 10 minutes every day. Look in the mirror afterward. You won’t notice a difference within a week. Run daily for 10 months, then look. See any difference?
You will have lost weight and will be feeling fit and healthy.
#1. Health and Fitness
Compounding plays an important role in keeping a person fit and healthy.
Anyone can lose weight after going to the gym for a few months. But what about after a person has lost weight?
They usually revert to their habits which led to them gaining weight in the first place. So, they go to the gym again.
And the cycle continues.
To break this cycle, exercise daily for a few minutes. Small efforts put in daily offers a huge benefit to both your mind and body in the long run.
Create a habit of exercising and see your efforts pay themselves out.
#2. Self-Improvement
Self-improvement also works on the principle of compounding.
Each time you take a small step to improve yourself, that ‘new’ you becomes the base for your next improvement. You improve on your current version, not the one you started on.
Suppose you start reading a book. Every time you turn a page, you’re gaining knowledge.
It sounds small, but do that for a long time and you’ll be a master in the field.
That’s how improvements work: building upon a base. The stronger the base, the less work you have cut out for yourself.
#3. Education
Learning builds upon itself. That’s how it works.
You are taught ABCs when you’re a kid. As you grow up, you’re taught words and sentences, phrases and idioms, letters and essays, and much more.
Each time you learn something new, you’re building upon your foundation of knowledge. And the more you learn, the easier it gets to learn more.
Every field offers the benefit of compounding as long as you put in the necessary efforts.
Compounding isn’t about putting in a huge effort. It’s about putting in SMALL EFFORTS REGULARLY and having the patience to see it through.
That’s all for today.
See you tomorrow.
Bye!
