Compounding
Small changes compound exponentially over time.
Explanation
Compounding happens when the results of an action generate further results, which generate even more results. This creates exponential rather than linear growth. The key insight is that small, consistent improvements can lead to dramatic changes over time, while small negative changes can lead to dramatic deterioration.
Real-World Example
Money: $1000 at 10% annually becomes $2600 after 10 years, $6700 after 20 years. Reading: 30 minutes daily = 200+ books over 10 years = massive knowledge advantage. Habits: 1% better daily = 37x better over a year. Relationships: Small acts of kindness compound into deep trust.
How to Apply
Look for areas where small, consistent actions compound: learning (daily reading), health (daily exercise), relationships (regular contact), skills (deliberate practice). Start smaller than you think you need—consistency matters more than intensity. Be patient—compounding is slow at first, then explosive.