Habits Compound, Just Like Our Investments



Habits are interesting phenomena, often remaining in the background of our lives, where they live below the surface of our perception until an event of reckoning brings them to the forefront. Take, for example, choosing to watch an extra television show each night instead of exercising; while such a habit may provide satisfaction and relaxation, its results compound.


Thus, 10 to 20 years down the road, you have a flaccid physique and high cholesterol.

If one continues the example above and stretches it out by another 15 years, the trend leads to even uglier results.


However, on the flip side, if one were to devote half an hour to exercising each day instead of watching an extra show, they would likely be healthier and more mobile at each time increment above.


So, what can we learn from such scenarios? That just like investments, habits compound. Simple actions today can either prepare or detract you from living the life you want someday, and many times, the results of our habits take years to catch up with us.


If you were to start saving $100 a month at a young age, it would initially provide little benefit. Nevertheless, with time and persistence, such diligence compounds and 40 years later can grow to over half a million dollars. Now that is powerful, but it takes time to achieve.


So, which life do you want to live? One where your habits compound to create the future you want to live, or one where you live for temporary satisfaction at the cost of your future self? And yes, while the resistance and lack of progress may become frustrating initially, remember: good things are not built overnight. With time, anything is achievable, so don't give up and forge the habits for the life you want to live.


If you are wondering how you can create meaningful money habits, please setup some time on my calendar. I would love to help you create a roadmap so that you can achieve a more deliberate life, where you reach the financial goals that you set!

0 views0 comments

Recent Posts

See All