Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn’t ... pays it. Compound interest is the most powerful force in the universe. — Albert Einstein
Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.
Compound interest is a very interesting thing. Initially, I came across the term while studying about investing but as I become more conscious of life, I began to see how it relates to so many everyday things..particularly with our goals.
The definition above gives compound interest in terms of money/ investing. I view everyone as an investor, not in stock market, but in their own individual lives.We invest every single day whether we know it or not with the activities we get into, the company we keep, the food we put into our mouths, and the places and things that we decide to let into our lives.Everything that is in our human experience right now is contributing to our future. These things don’t seem to affect us on a daily basis therefore many people make the mistake of "letting is slide " or, the opposite, giving up too easy.
For example, the effects of smoking cigarettes cannot be seen on a daily basis but when examined over several years then we can see just how dangerous it is. Another common example is the fact that many people start working out but quit too soon to ever get good results.
I remember the day I decided to take charge of my health. I trained consistently for several weeks without seeing any real results but I decided to stick with it anyways. What I found interesting though, looking back, is the fact that when I began to see the results, it appeared to come in avalanches. I had lost a lot a fat, had a ripped six pack, my strength was ten fold, my confidence skyrocketed, and I was in STATE!!
For a very longgggg time, however, it seemed like I was going nowhere. It seem like as if I was running in circles and digging a hole while I was at it.We can harness the power of compound interest to sculp our lives into master pieces. I have started the process and I hope that you reading this, will too. To harness the power of compound interest we need to measure our daily activities on a small scale. The more you can accurately measure something then the more you can control it.You can do this by asking yourself a simple question.
How will doing this benefit me in the long run?
If it takes away from you in any way, then doing it on a consistent basis will definitely bring you regret.
If it benefits you, in a very small way, then it will yield enormous benefits in the near future.
Simple things like eating healthy, breathing fully, and reducing stress, although the benefits are unnoticeable on a daily, are gauranteed investments. When you see the results you won’t believe it.
What action will you take?