As there is power in financial compound interest, there is also power in compound experience. There is a vast difference between compound interest and that of compound experience.
Financial compound interest takes a long time to start producing financial results for the normal person on the outside of the financial know how circle. For instance, you could save $100 on a monthly basis and invest it in a savings account. If your investment appreciates by 2 % on a yearly basis over a period of 30 years you’ll end up with just under $50,000.
While that sounds like useful amount of money, it has a downside because you are locking up your capital for 30 years and in 30 years your money will not have the same purchasing power. Say you put it in the stock market, well that can crash at any time and you will be back to or close to square one.
Financial compound interest is exciting in theory, but not in practice.
Banking experiences is much safer and can be far more lucrative as they too are subject to “compounding”.
The more knowledge that you have the faster you will learn. The learning process creates associations linking memories. If you have a large amount of mental associations that relate to a particular subject you will memorize new aspects of that subject much faster.
If you have a great deal of experience in a subject then your brain will be primed to expose patterns that others miss. So if you have a wealth of business experience you will pick up on potential business opportunities easily and quickly, giving you the edge on your opponents.
The more knowledge you have, the more often you will be “inspired”.
Einstein stated that:
“A new idea comes suddenly and in a rather intuitive way, but intuition is nothing but the outcome of earlier intellectual experience”
The more things you learn, the faster and more easily you’ll receive blinding flashes of insight. This is a direct result of your brain clicking a “fit” between a bunch of already existing associations. Your subconscious mind is always at work, piecing together differing pieces of information to see how they mesh with each other.
Given this facet of compound experience, it is important that you learn and experience as many things as possible early and continue the trend throughout your life. You are never too old to start.