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  • Writer's pictureDillan Taylor

Compound Interest

Aspects of life begin to open up once we realize that everything runs on compound interest.

Typically, the phenomenon is used to describe the goal of investing money. You put $1000 into the stock market. With a 10% return, you get a $100 back after a year. Next year, if you did nothing, you’d be earning interest on $1100. You get a return of $110 that year. As this continues, you’re earning interest on a higher and higher base value.

This can sound incredibly dull. But this is everything we do.

Aside from investing money, compound interest is prevalent:

In great friendships. The longer we stay friends with someone, the more solidified and stronger that relationship becomes.

In our passions. As we develop our craft–whatever it may be–over the years, we shed light on our love for it and learn what we don’t know along the way. We become masters.

In our health. If you’ve been fit and active for 20 years, you don’t wake up one day and suddenly say fuck it, and become a couch potato (haven’t used that term in years).

This is all best-case scenario, obviously. Many of us will plateau and halt our improvement and settle for good enough. Thinking about things in terms of compound interest however can really push us to stick at something. If we do, the results will be astonishing.

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