Posted by Howe Q. Wallace on Monday, March 1st, 2021
“The most important returns in life come from the compounded effects of our investments over time, whether in our finances, careers, hobbies, or relationships.”
Compounding is a process for accumulation. In the quote above, it is suggested that compounding can be applied to your bank account, your job, or your relationships, as well as anything else you’d like to become known as being competent and to see grow.
“Compounding” is applied to savings most often. The idea is if you save a bit of money every day or week, put it away where you don’t spend it, it will accumulate to a greater portion than you anticipate. The idea is the money is invested and gains interest. After a period of time, the money you saved and the money that you gained through interest will grow. The interest-earning interest sets you apart.
Applying “compounding” to your job has the same impact. You become a reliable contributor each day and your reputation will grow. You learn something new, your knowledge grows. You gain a new skill, your capability grows. You make it your mission to add new skills, gain new knowledge and be unquestionably consistent in doing a good job, you see your responsibility grow because you’re more capable.
Compounding is a deliberate choice. You must choose to save. You must choose to try something new. You choose the level of effort and commitment you make.
Compounding is a sacrifice. You give up something in the short term to reap a bigger benefit later. Mature people compound. The less mature defer choices until later. They sometimes wait too long.
Are you a compounder? The evidence of compounding can be seen by comparing yourself to your situation a year or two ago. How does it look? Are you further down the road?