Compounding Effect

 

Salam.

Hope everyone is well.

Have you come across the thought that are all the small habits, sacrifices, worth it? As an example, the exercise routine that you did thrice per week however there is no changes on the weigh scale. So you start to question yourself that probably you should have stop exercise altogether since there is no tangible and visible result. Although there were numerous research by experts mentioning the benefit of doing physical exercise, it is still not convincing enough to make us believe that it is worthwhile. 

This is the thing that I learned deeper at the moment. The power of compounding effect. 

It was triggered by this book ‘The Psychology of Money’ and he mentioned about the comparison between 2 investors that had done completely different method of investment. Investor A put a large sum of money in a high risk high return scheme, believing that his previous luck will stay and he will again, gain a lot from the investment. In contrary, investor B allocate fix small sum every month for investment, for longer tenure not really having high hope on the investment realizing the fact that it is after all, investment. 

Fast forward 20 years later, investor B enjoy his gain from the investment, living a stable life while investor A is still looking for ways to get his life stable, making ends meet. 

I am aspired to be like investor B. Anything ahead or more than the base case are totally bonus. For someone that is in dire need to learn how to be patient, I need to remind myself the significance and powerful impact of time, despite the slow pace. 

I believe consistency in saving money, fasting, doing phyical exercise, reading, reflecting, practising will eventually give us something, one fine day and I will be very grateful that I had started and consistent doing it.