Compound Your Life: JB's Monday Momentum #17
"Compounding is a force that can shape and magnify any endeavor, whether it's building wealth, achieving personal growth, or even natural phenomena."
Estimated reading time: four minutes
Welcome to Monday Momentum, the weekly newsletter where I discuss practical wisdom, uncovering insights to enhance our lives one thoughtful moment at a time. While I have confidence in the ideas I write about, I acknowledge that what works for me may not work for everyone. Take each idea as you see fit and let me know what you think!
Hello friend,
As the graphic above illustrates, the power of compounding can significantly impact our lives, for better or worse. It's remarkable how a mere 1% difference can lead to vastly different outcomes by the end of the year.
If you were to remain stagnant, making no changes, you would end up exactly where you started (shocker). However, if you were to improve by just 1% each day, you would be more than 37 times better off by the end of the year. Conversely, if you were to worsen by 1% each day, you would end up a staggering 1,260 times weaker.
This speaks to the leverage that compounding can provide. Being consistent and sticking to something can propel us toward a fulfilling life … or lead us down a destructive path.
If you missed last week’s edition—“Always Your Best”—you can click here to check it out.
A Question I am Contemplating:
How can we use the power of compounding to live a fulfilling life?
Compound interest is often associated with wealth and finance, but its principles can be applied to much more. Compounding is a force that can shape and magnify any endeavor, whether it's building wealth, achieving personal growth, or even natural phenomena.
Consider the idea of "overnight success." While a lottery winner may seem to have struck it rich in an instant, the winnings they receive are the result of countless others consistently gambling over an extended period. The jackpot is not a single event but rather the compounding of collective efforts. Similarly, a thriving plant doesn't bloom from a single watering and sunlight exposure. It's the daily, consistent nurturing that allows it to flourish. Even a volcanic eruption, though seemingly sudden, is the culmination of a gradual, persistent buildup of magma.
Knowing the power of compounding, it would be foolish not to apply this principle to the most meaningful areas of our lives. Compounding isn't limited to just material accumulation:
Relationships: The more time we spend with someone, the greater the trust that develops through the compounding of shared experiences.
Health: A single workout or healthy meal is not enough; consistent daily workouts and healthy meals are what yield results.
Reputation: By consistently demonstrating our value, others will eventually notice and seek to work with us.
Knowledge: We don't gain expertise through a single learning session but by building our understanding over time, layer by layer.
Habits: Habits become habits through the consistent compounding of actions. When these habits are good, the dividends paid out are massive. In his book, Atomic Habits, James Clear states, "Improving by 1% isn't particularly notable—sometimes it isn't even noticeable—but it can be far more meaningful, especially in the long run."
Understanding the impact of compounding is one thing, but how do we harness it? The key is to use this power deliberately and strategically.
The first step is to fully commit to something—a goal, a habit, a relationship, a skill. Identifying the right pursuit may require a lot of time and energy, but it is an essential investment. Once you've identified that meaningful pursuit, invest in it completely and focus your efforts.1 Compounding only works when we stick to something. Constantly switching between different endeavors prevents us from realizing any benefits.
We also must be mindful of the compounding effects of our negative actions. Just as positive habits and decisions compound over time, so too can bad ones. If we commit to the wrong thing or engage in harmful behaviors, they will continue to erode our progress. Be deliberate in your choices, understanding that our time is limited, and the areas we choose to compound on will yield the greatest returns.
Recognizing the universal applicability of compounding empowers us to invest our time and effort into the areas that matter most. Gradual, incremental progress is what creates a truly wealthy life.
Quote on compounding:
“When you find the right thing to do, when you find the right people to work with, invest deeply. Sticking with it for decades is really how you make the big returns in your relationships and in your money.” — Naval Ravikant2
Goal for the Week:
Have some fun
This week should be one of the most enjoyable of my life. I'm currently in Scotland, on a golf trip with my dad and brother. Then on Thursday, I head to London to play the final baseball games of my life.
The only way this week won't be fun is if I'm not present (or lose all my golf balls3) and end up busy worrying about other things. As long as I stay present, appreciate where I am and what I'm doing, and remember to just have fun, there's no reason why this week won't be one of the most memorable of my life.
The reason we partake in activities like sports is to have fun and step away from other chaos in our lives. If I somehow manage to make this week—which should be one of the most enjoyable of my life—even slightly unenjoyable, I messed up.
What I’m Reading:
The War of Art — Steven Pressfield (64% done)
What I’m listening to (one podcast, one artist, one song):
The Tim Ferriss Show: Boyd Varty — The Lion Tracker’s Guide to Life (#571)
Futurebirds
“Cold Hearted” — Jacoozy
Thanks for reading! Don't forget to subscribe to stay updated for the next edition and feel free to leave a comment. I'd love to hear your thoughts.
Take care,
James
The Almanack of Naval Ravikant — Eric Jorgenson, Naval Ravikant
This idea was first introduced to me by Naval. I’ve linked the chapter, “Play Long-Term Games With Long-Term People”, where he discusses compounding. It’s a short read but very insightful; I highly recommend it.
Unfortunately, there is way too high of a percentage of this actually happening.
Thanks for sharing bud!