# Everything Compounds, Not Just Interest

By [Amos Ductan](https://paragraph.com/@aductan) · 2022-09-23

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**TL;DR** - Everything compounds, including experience. If you put in the effort, time becomes a tailwind and you will achieve wonders

Compound interest is a term usually discussed exclusively in the context of finance. You hear people talk about your investment portfolio compounding over time for instance. When you think about the broader implications of this concept it has some important lessons for how we live our lives day to day outside of investing.

![Growth of a hypothetical $1,000 investment at different rates of compounding. Relatively small changes in the rate of return can result in dramatic differences over time because of compounding](https://storage.googleapis.com/papyrus_images/29254693ca8d52ebd70b604691de83cfcf1510df1f656294e28fbc867c270015.png)

Growth of a hypothetical $1,000 investment at different rates of compounding. Relatively small changes in the rate of return can result in dramatic differences over time because of compounding

The concept of compounding is not just a finance thing. It actually applies to almost every facet of life. Take learning for example. You learn foundational concepts as a child which allow you to learn more and more. Every bit of information is like a brick building a giant structure in the same way a small amount of capital can turn into a huge sum over a long time with consistent growth.

When you think about it this way you realize even small actions can have a meaningful impact given how they fit in the grand scheme of things. This is especially important when we have hardships. These trying periods are no doubt unpleasant in the moment but if we can push through they often impart important lessons that shape who we are for the better.

This is how time becomes a tailwind. Every decision you make leads you closer to your final goals. This is a great way to build motivation and find a way to do the small things consistently so they turn into something meaningful in the end.

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*Originally published on [Amos Ductan](https://paragraph.com/@aductan/everything-compounds-not-just-interest)*