Philosophy & Thought
Compounding is the idea that small, consistent actions accumulate over time to produce outsized results. It's most famous in finance (compound interest), but applies everywhere: habits, skills, relationships, knowledge.
This concept, especially as presented in Atomic Habits by James Clear, has profoundly shaped my character and trajectory. It's one of the most useful mental models I know.
"Habits are the compound interest of self-improvement." — James Clear
If you get 1% better each day for a year, you don't end up 365% better—you end up 37x better (1.01^365 = 37.78). Conversely, getting 1% worse each day leaves you at nearly zero (0.99^365 = 0.03).
This exponential nature is why small habits matter so much. The gap between good and bad habits widens dramatically over time.
Compounding is counterintuitive because the early results are invisible. You don't feel 1% improvements. The graph looks flat for a long time before the curve takes off. This is why most people quit—they don't see immediate results.
The key is to trust the process and focus on systems over goals. You don't rise to the level of your goals; you fall to the level of your systems.
"Amazing things don't happen overnight—dedicated to the pursuit of something great, still figuring out what that is."