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WHAT EVERY MILLINIORE KNOWS BUT YOU DONT - THE POWER OF COMPOUNDING

In this article I will tell you the secret of highly successful peoples I will tell you the power of compound effect and how to use it .

WHAT IS COMPOUNDING

DO YOU KNOW WHAT COMPOUNDING IS ?  IF YOU DONT KNOW IT LET ME EXPLAIN -- SUPPOSE YOU HAVE GIVEN SOMEONE 100$ LOAN WITH 8% SIMPLE INTEREST THEN IN FIRST YEAR YOU WILL GET 8$ AND THIS AMOUNT YOU GET FROM INTEREST WILL NOT INCREASE BY TIME , IT WORKS IN UNIFORM MOTION , IF WE DRAW A GRAPH OF SIMPLE INTEREST WE WILL SEE A STRAIGHT LINE .

NOW SUPPOSE YOU HAVE SAME SCENARIO BUT THIS TIME THE MONEY WILL BE IN COMPOUND INTEREST SO FIRST YEAR YOU WILL GET THE SAME 8 $ BUT IN SECOND YOU WILL GET 8.64$ IN THIRD YOU WILL GET 9.33$ BECAUSE THE MONEY YOU GOT FROM EVERY YEAR WILL ADD UP TO THE TOTAL AMOUNT AND THIS IN SECOND YEAR THE AMOUNT WILL BECOME 8% OF  108$ THAT IS 8.64 AND SO ON . IF WE DRAW A GRAPH WE WILL SEE THAT IN STARTING THIS WILL INCREASE IN SLOW RATE BUT AFTER SOMETIME THE GRAPH STARTS TO TAKE A CURVE , SHOWING THAT NOW IT IS INCREASING WITH MORE SPEED AS TIME GOES ON.

POWER OF COMPOUNDING

WHAT SUCCESSFUL PEOPLE KNOW BUT YOU DONT 

HERE IS A GOOD EXAMPLE THAT WILL SHOW YOU THE POWER OF COMPOUNDING  , WHAT IF I TOLD YOU CAN TAKE A 1 MILLION$ AT THIS TIME OR 0.10 $ DOUBLED EVERYDAY FOR 31  DAYS , WELL MOST PEOPLE WILL CHOOSE THAT $ 1 MILLION RIGHT  NOW BUT NOW I WILL TELL YOU WHAT WILL THAT 10 CENT WILL BECOME $10,737,418 AFTER 31 DAYS SO NOW YOU HAVE SEEN THE POWER OF COMPOUNDING SO LETS KNOW HOW TO USE IT. 

HOW TO USE COMPOUNDING TO IMPROVE YOUR LIFE

SUPPOSE THERE ARE TWO MEN - RAMESH AND SURESH . RAMESH TOOK A RESOLUTION THAT HE WILL CUT 100 KCAL FROM HIS DIET AND JUST WALK A MILE EVERY DAY WHEREAS SURESH STARTED EATING MORE JUNK FOOD AND DRINKING MORE WINE . AFTER 3 MONTHS BOTH MEN LOOK SAME ,  NO CHANGES CAN BE SEEN , AFTER 6 MONTHS VERY SLIGHT CHANGES CAN BE SEEN IN BOTH BUT MAGIC OF COMPOUNDING CAN BE SEEN AFTER 1 YEAR SURESH HAS GAINED 15KG (33 POUNDS) AND LOOKS VERY FAT HE BECAME VERY LAZY SO HIS WORK PERFORMANCE DECREASED AND HE HAD A DEMOTION IN HIS COMPANY  WHEREAS RAMESH LOST 10 KG ( 22 POUNDS) . THIS CHANGE MADE HIM VERY ENERGETIC AND HE BECAME VERY PRODUCTIVE IN HIS WORK , SO HE GOT A PROMOTION , HIS LIFE HAS COMPLETELY CHANGED HE IS NOW VERY HAPPY ABOUT THE SMALL DECISION HE TOOK  , THAT COMPLETELY CHANGED HIS LIFE.

IF ITS SO EASY TO DO THEN WHY DON'T MOST PEOPLE DO IT

MOST PEOPLE JUST START TAKING TO LARGE STEPS LIKE THEY SAY FROM TOWMORROW I WILL WALK 10 MILES EVERYDAY  THEN AFTER JUST SOME WEEKS THEY LOSE THEIR MOTIVATION AS THEY DONT SEE ANY RESULTS AND THEY JUST COME BACK TO THEIR NORMAL LIFES . BUT SUPPOSE NOW A MAN JUST CUTS 100 KCAL FROM HIS DIET MEANS JUST STOP EATING SOME COOKIES THAT IS JUST A SMALL THING . AND HE JUST START WALKING A MILE THAT TAKES LESS THAN 10 MINS . BECAUSE THIS IS A SMALL TASK HE NEVER STOPS DOING IT AND IN JUST 1 YEAR LOSES 10 KG ( 22 POUNDS) AND GAINS EXTRA ENERGY . OKAY SO YOU NOW KNOW WHAT IS POWER OF CONSISTENCY LETS LEARN HOW TO GRADUALLY ADD COMPOUNDING TO IT.

HOW TO ADD COMPOUNDING EFFECT TO SMALL ACTION

OKAY SO NOW I AM GOING TO TEACH YOU HOW TO ADD COMPOUNDING EFFECT TO YOUR SMALL ACTIONS AND SLOWLY MAKE THEM BIG SO NOW LETS THAT SAME SURESH BUT NOW HE  WILL VERY SLOWLY INCREASE THE RESOLUTION LIKE EVERY WEEK HE INCREASED 0.1 MILE TO THE WALK MEANS IN SECOND WEEK HE WILL WALK 1.1 MILE , 1.2 MINLE IN THIRD AND SO ON PLUS FROM SECOND WEEK HE STARTED DOING GYM JUST 30 MINS FOR ONCE A WEEK THEN FOR 4 WEEKS EVERY WEEK HE JUST INCRESED JUST 1 MORE DAY OF HITTING GYM  AND AFTER JUST 4 WEEKS HE STARTED HITTING GYM FOR 5 DAYS A WEEK PLUS HE NOW RUNS 1.4 MILES NOW HE STARTED INCREASING THE TIME SLIGHTLY THAT HE SPEND ON GYM JUST INCREASED JUST 2 MINS EVERY WEEK . IN 6 TH WEEK HE SPEND 32 MIN THEN 7 TH 34 MIN AND SO ON UNTIL HE EVENTUALLY STARTED DOING 1 HOUR OF GYM FOR 5 DAYS IN A WEEK IN 20 WEEKS MEANS IN 5 MONTH IN TOTAL PLUS HE NOW WALKS 3 MILES EVERY DAY. 
THIS ALL USEFUL INFORMATION IS FROM BOOK THE COMPOUND EFFECT YOU COULD GO AND READ IT FOR MORE INFORMATION.



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