Implementing Compounding Effect Into Your Finances

Have you heard about compounding effect?

Have you ever thought about how you can amplify it in your life?

A few years ago, I started exercising.

I started by doing small, inconsequential seeming things. Nothing crazy. Jumping jacks, crunches, planks, etc. Typically when hanging out with my kids at home.

A few weeks later, my colleague asked what I was doing that was making me tone up. It actually took me a sec to know what she was referring to.

Why? Because I was only making small changes but apparently it was adding up and now showing up as a significant effect.

I have fallen off the wagon a few times. Many times it starts with me thinking ‘ skipping a few days is no big deal’ and then I find that I haven’t exercised in weeks!

The idea of compounding is more known in terms of compound interest in the money world.

The idea that the additive effects of small changes, money invested grows as time in the market increases. Initially additive and later exponential.

How about applying this in other areas?

Both positive and negative.

For instance, an extra serving of food every day may look like a minor change but can add up over time.

Extra overspending every day.

‘I’m just going to skip working out for today...’

Where else can you use the idea of compounding in your life to encourage persistence?

An extra small change in your business.

An extra small change in what habits?

An extra small change in time with your spouse?

An extra small change in your financial habits?

When I feel discouraged or lazy or need to stop those nonserving small changes, I think compounding effect.

Cheers to growing together and compounding in ways we want.