Compounding
Mental model about turning the little into the big
The Power of Compounding
Compounding is the phenomenon where small, consistent actions build upon themselves over time to create exponential results. What starts as barely noticeable growth eventually curves upward dramatically.
Key Principles
Non-Linear Growth The effects are invisible at first, then seem to appear all at once. The gap between linear and exponential growth becomes massive over time.
Consistency Over Intensity Small daily improvements (1% better each day) compound into massive gains. It’s not about heroic efforts, but sustained rhythm.
Time is the Multiplier The longer the time horizon, the more dramatic the effects. Early investments of time, energy, or capital yield the greatest returns.
Applications
Learning & Skills Each concept learned becomes a building block for understanding more complex ideas. Knowledge compounds on knowledge.
Relationships Small acts of kindness, trust-building moments, and shared experiences compound into deep bonds.
Health Daily exercise, good sleep, and nutrition habits compound into vitality. Conversely, poor habits compound into decline.
Financial Money earning returns that then generate their own returns. The classic compounding example.
Content & Audience Each piece of content builds authority and reach. Previous work attracts new opportunities and amplifies future work.
The Compound Curve
Most people quit during the “valley of disappointment” where effort feels disproportionate to results. The breakthrough comes to those who persist past this inflection point.
Working With Compounding
- Start early when possible
- Optimize for consistency, not perfection
- Protect your compounding systems from disruption
- Be patient with the plateau phases
- Remove negative compounding (bad habits, toxic relationships, inefficiencies)
The best time to plant a tree was 20 years ago. The second best time is today.