The effect of compounding is one of the Eighth Wonders of the World according to Einstein:
"He who understands the power of compounding earns it; he who doesn't, pays it"We hear about the impact of compounding mostly in relation to finances such as interest that compounds - basically earning or paying 'interest on interest'. The impact is profound and important to 'get'.
But it is also important to think about the impact of compounding in relation to your daily activities. Stacking good habits or activities on a daily basis. This creates momentum but also creates a body of work that complements one another.
But miss a day and the momentum is lost.
Seinfeld explained how he ensured that he kept up the momentum of his daily writing by sticking up a huge wall calendar up:
"...each day that I do my task of writing, I get to put a big red X over that day. After a few days you'll have a chain. Just keep at it and the chain will grow longer every day. You'll like seeing that chain, especially when you get a few weeks under your belt. Your only job next is to not break the chain."Daily activity compounds positively. Your job is not to break the chain.
Of course, there are some activities that are counter to the positive impact of daily compounding much like interest payable. So eating a doughnut every day ain't worth a red X on your wall calendar unless you're counting towards a less positive outcome...
Dan Kennedy talks about the concept of a 'Future Bank' and that every day he carries out some activity that will bring him cash (hence 'Bank') in the future. No matter how successful or lazy a day he has had, he will reach out to a new prospect or a warm lead. Just some sort of positive action every day.
So aim to take some positive action towards your 'Future Bank' every day and try not to break the chain!
