Invest in good habits early. Then, watch them compound.
Compounding isn’t just for financial investors. Anyone can use the concept to live their best life.
„Everyone wants to sleep better, be more productive, work more effectively. And the earlier you start doing that in your life, the better”, a former intern of mine said during our lunch at a local Spanish restaurant. We were munching away on pork cheeks with potatoes, soaking in the spring sun of Barcelona.
The last sentence resonated with me:
The earlier you start doing that in life, the better.
Walking down the street towards the beach before our lunch meeting, my train of thought went through how I became the person I am today.
So much knowledge. So many skills. So many experiences I’ve made and things I’ve learned. And all of them before turning 30.
It is mind-boggling to think about how many little things play into you being the person that you are.
But the thing that shapes you the most are your habits.
Managing your time.
Managing your energy.
Managing your money.
And many more.
One thing these habits all have in common: they compound.
We know compounding from financial investing:
- You invest some funds.
- You earn interest on these funds.
- You re-invest the interest.
- You earn interest on your interest and your initial investment.
- Rinse and repeat.
Compounding is hard to see in the short term, but makes a huge difference in the long term as you can see here:
The principle of compounding can be applied to the habits above, too. You won’t notice a significant change initially, but if you stick to your habits…