How to Leverage the Power of Compounding in Life And Business
CAREER & BUSINESS
Photo by Clay Banks on Unsplash
Weknow about the value compounding from finance, when you are paid or charged compound interest.
According to HDFC, the key to leverage the power of compounding is to stay invested for a longer term. The longer your investment time frame, the more compounding works at an accelerated pace.
The power of compounding also works in non-financial aspects of everyday life if you apply the same principle of investing for longer.
How to Leverage the Power of Compounding in Your Personal Life
Use the knowledge you already possess to acquire new skills which make you more valuable in the marketplace. You can negotiate higher rates of pay and enjoy the benefits of being skilled in areas where demand is high.
You can use your existing skills to build a business. Being a business owner is not risk-free but it does come with many advantages. You get to choose your working hours, where and how you work, who you work with and how much you charge. As long as you are not risk-averse and you want to be your own boss, starting a business is a good way to compound your skills.
Invest in personal relationships. Spend time with people you care about.They are the ones who will celebrate with you when you do well, and pick you up when you fall. They will encourage you when life is hard, giving you the strength you need to forge ahead.
How to Leverage the Power of Compounding in Business
Writers who are successful on Medium frequently write articles about how to succeed as a writer. They leverage their writing skills by selling online courses and running training sessions. You can pursue a similar route using the experience you already have.
You can also leverage the power of compounding in business by nurturing good relationships, collaborations, and looking after your existing customers.
As you acquire new customers don’t neglect those who were with you from the start. They are the ones who will do free advertising for you by talking about how good your products or services are. Word of mouth referrals are priceless.
The Takeaway
Be patient. Reaping the benefits of compounding takes years. There is no such thing as overnight success. It takes years to build anything great.
Just as no one sees the foundation when a building is complete, no one will see the hard work you put in. One thing is certain — the deeper the foundation the more stable and taller the building will be.
So, build on your skills, apply your knowledge in helping others or building a business, collaborate and nurture both personal and business relationships. Keep doing this and you will start to see the power of compounding work for you.