Compounding applies to knowledge, experience and relationships and not just money
Summary
- Compounding applies to knowledge, experience and relationships and not just money
Details
- SImilar to money, a lot of the gains come at the end not the beginning
- you must keep reinvesting to experience the exponential growth
- if we build on our skills by cointinually improving them, we become significantly more capable in life
- compounding means that a 10% greater commitment doesnt give you 10% better results, but 10x better results.
References
Quotes
Knowledge, experience, and relationships compound. When it comes to our personal capabilities, there are few limits to the possibilities suggested by this model. As with compound interest, most of the gains come at the end, not at the beginning. You have to keep reinvesting your returns to experience the exponential growth that is compounding.
Experience also compounds. If we choose to build on the skills we’ve developed by using them in new situations, we are significantly more capable later in life. Using compounding as a lens to look at personal experience isn’t about proving an equation. Rather, this model can give us insight on what it means to reinvest what we learn through experience.
To gain insight and eventually wisdom, we need to reinvest our knowledge and let it compound. One way to do that is to be more deliberate about identifying how our past experiences can improve our chances of success in future ones.