Albert Einstein said “Compound interest is the eighth wonder of the world”. It is the magic of earning interest on your interest. This means that your money grows exponentially over time, even if you only invest a small amount.
Here’s an example:
- If you invest $100 and earn 5% interest per year, you will have $105 at the end of the year.
- If you reinvest that $5 interest, you will have $110.25 at the end of the second year.
- If you continue to reinvest the interest, your money will grow at an ever-increasing rate.
Over time, even small amounts of money can grow into a large sum. This is why compound interest is so powerful.
Lets apply that concept of compounding to self improvement.
Here is a quote the book Atomic Habits by James Clear about compounding:
“Habits are the compound interest of self-improvement. Small habits, repeated over time, can lead to big changes.”
Here are some tips for making sure that our habits work in our favour:
Start small. Don’t try to change too many things at once. Start with one small habit and focus on making it a part of your routine.
Be consistent. The key to success is consistency. Do your habit every day, even if you don’t feel like it.
Find a support system. Having people to support you can make it easier to stick with your habits. Find a friend, family member, or online community that can help you stay motivated.
Don’t give up. Everyone slips up sometimes. Don’t let a setback derail your progress. Just pick yourself up and start again.
Remember, habits take time to develop. But if you’re consistent and patient, you’ll eventually see the benefits.
Let me help you grow your wealth by helping establish good money habits. Book a complimentary 15 min discovery call to discuss your individual needs and how I can help you through money coaching.