"Compound Interest Thinking: Make small changes become big changes, and use compound interest to improve the long-term effects of life profits" Recommended Preface: Wake up every day a little smart...

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Adhering to a long-term mentality will allow you to see a different landscape.

Time flies, and the COVID-19 epidemic has not yet stabilized. With the rapid rise of the Metaverse and WEB 3, it seems that this is another turbulent year. Many friends like to make wishes at the beginning of the new year and set various annual goals. I think this is good. But if possible, I would like to work with you to build a compound interest thinking based on long-termism from now on.

Before I start talking about compound interest thinking with you, it may be indispensable to talk about compound interest first. Well, what is compound interest? I think most of you have heard of compound interest in the past! Therefore, you can learn without using Google: Compound interest is an interest calculation method that is different from simple interest. By incorporating the interest earned in each period into the principal and continuing to accumulate interest, the effect of interest compounding and money rolling is achieved. Compound interest investment combined with regular and fixed investment is also a method that many people use when investing and managing money.

Some people call compound interest the “eighth wonder” of the world (https://www.storm.mg/article/2623229), which shows that its power is extraordinary! It’s no wonder that when it comes to compound interest, many people immediately think of saving money. In fact, the concept of compound interest can be applied not only to investment and financial management, but also to life and work. In other words, compound interest thinking can not only help us accumulate wealth, but also use it to think about our own lives.

This book The author mentioned six types of compound interest thinking, namely thinking compound interest, cognitive compound interest, time compound interest, learning compound interest, growth compound interest and habit compound interest. In other words, we can improve our way of thinking and working habits through these six dimensions. If we can practice it, it will not only help us accumulate wealth, but also improve the quality of life.

The book mentioned the story of Charlie Monger, which deeply inspired me. Charlie Monger is a wise and humble elder. He said: “Strive to wake up every day a little smarter than yesterday.” Indeed, this is the compound interest effect in personal growth.

[This book](https://www.books.com.tw/exep/assp.php/vista/products/0010915830?utm_source=vista&utm_medium=ap-books&utm_content=recom mend&utm_campaign=ap-202202) The author encourages everyone that if you can start from your own interests, cleverly use [fragmented time](https://zh.wikipedia.org/zh-tw/fragmented time) to invest a little every day, and use marginal cost thinking, you can also accumulate a lot of results. For example, if you spend an hour every day writing a thousand words, you can produce 360,000 words in a year, which is enough to publish several books!

I also feel this deeply, just like I recently started recording my own podcast program “Vista’s Little Voice”. In fact, I have had this idea for a long time. I also recorded sporadically a few times last year, but I still haven’t developed a habit. In the past, I always felt that I had to do all the preparatory work (such as planning scripts, purchasing recording equipment, inviting interview guests, etc.) before I can really start being a Podcaster.

But then I read [this book](https://www.books.com.tw/exep/assp.php/vista/products/0010915830?utm_source=vista&utm_medium= ap-books&utm_content=recommend&utm_campaign=ap-202309), inspired by the idea of compound interest, I finally stopped worrying about meaningless things and decided to take the first step and pursue the realm of “complete first, then perfect”. Therefore, every night now I will briefly think about the theme of the program, then have a good sleep, wait until the next morning to start recording videos, and at the same time write the article and post it to my blog and social media.

Looking at the things I have done these days, it seems that they are many and complicated, but in fact, if you break them down carefully, you will find that although they are simple and unpretentious, I am very happy with what I do. Having said that, it also gave me many unexpected results. For example, some people subscribed to my YouTube channel, and some friends left me messages saying that they received a lot of help from listening to my podcast…and so on.

If you think about it carefully, what I do is in line with the compound interest mindset, right?

Everyone has heard of “Snowball Theory”, right? Warren Buffett said that life is like a snowball, and there are only two factors that affect the size of the snowball: a long enough slope and sufficient snow. As the snowball gets bigger, it means the investment results will become more abundant.

Implementing compound interest thinking is just like us rolling a snowball. As more and more snow sticks to the snowball, it will naturally become bigger and bigger, and the bigger and bigger the snowball can stick to more and more snow… This phenomenon is what the author of this book mentioned, “accumulating small wins into big wins, accumulating small things into big things, accumulating small profits into compound profits.”

Reading itself is something that has quite a compound interest effect, so I not only believe in reading, but I am also happy to recommend the new book “Compound Interest Thinking”. At the same time, I would also like to invite everyone to cultivate compound interest thinking and do things with a long-term mentality. I believe that after you persist for a while, you will suddenly find that the scenery in front of you is very different!

★ Photo Credit: AbsolutVision on Unsplash

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Further reading

• [“Thoughts and Challenges of Starting a One-Man Company” Recommended Preface: “Thoughts and Challenges of Starting a One-Man Company”] (/blog/thoughts-and-challenges-of-starting-a)
• [“Focus on the 20% high-density work: Learn to “pick work to do” and get the maximum results in the least time” Recommended sequence: Say goodbye to perfectionism and become a high-density worker] (/blog/focus-on-the-20-high-density-work)
• Recommended preface to let the elephant fly: an entrepreneurial guide worth owning and reading frequently

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