Compounding — Affects more than just interest
Compound interest is the 8th wonder of the world. He who does not understand it, pays it. — Einstein
Invest your money, earn interest. Then, earn interest on (your money $ + interest earned $), rinse and repeat. Here’s a chart:
[INSERT Chart: $1000 ~ 5,10,20 years @ 7%]
1% daily : (1.01)^365 ~ 37
3% daily: (1.03)^365 = 48482.7245
4% daily: (1.04)^365 = 1648803.29
Effects can be positive or negative
Expands far beyond what we usually apply it to in order to understand it (exponential charts)
When things go wrong, and they inevitably do go wrong, complexity compounds issues that can spiral out of control into total disaster.
— Jocko Willink & Lief Babin, Extreme Ownership (p.140)
Your time, if spent intentionally, can yield a happier life (less stress, more content) and even… more time.