Apply This Principle of Investing in Your Daily Life
To form habits, financial or otherwise, you must make an effort. This often means making small changes or adjustments continuously over a long period of time. Days, weeks, months, years – if you really want to change your behavior, you have to devote yourself to something for the long term.
By the way, timing, or rather, time in the market as well, is one of the keys to investing and creating wealth . In fact, time spent can be your most important asset.
And yes, it’s because of compound interest . You get some return on your investment, and that return gives you more income, and so on.
Why not apply this principle to the rest of your life? “The power of compounding can be applied to reading a book, eating healthy, spending quality time with the people you love, exercising, getting up early, using the system to get things done, and changing many areas of your life,” writes Thomas Oppong for Medium .
Practicing small habits or skills daily and developing them is akin to building your investment portfolio. Gradual change leads to exponential growth .
“Compounding is like making ‘daily contributions’ to goals, ideas, projects, people that matter to you, and watching them develop over time,” Oppong writes.
Oppong encourages readers to “strive to do your best five percent in every job, interaction, or action you take.” It’s a little over the top, but you get the point – if you have an area of your life that you want to improve or a skill that needs to be honed, start small, invest some of your time and attention, and do it consistently over a long period of time. time. You will watch the payout increase in real life.