Albert Einstein the brilliant scientist, Nobel prize winner, humanitarian and Philosopher called this the most amazing phenomenon of the universe !

The law of compound interest !

What is the law of compound interest i hear those of you who hate numbers ask.

It’s the law that states that if you have for example £1 today and you have it in a magical bank with 10% interest – next time you check you’ll have £1.10 which is nice, but not lifechanging, but the real mystery of this law is that any interest that now comes to you, doesn’t come on the original £1 but on the £1.10 – it keeps on growing! It ‘s the gift that keeps on giving !

Most of us know that compound interest applies to money. But you can apply it to any area of your life or your business. Because you can be sure that if compound interest is not working for you, it’s working against you.

If you invest in something and accumulate interest, that interest compounded makes you money. But if you borrow money, you pay interest and that interest compounded costs you more money. In both situations, a day of interest is not going to rock anyone’s boat, but taken over time and compounded the effect can become huge !

Just like the rule of 80/20 the phenomenon of compound interest relates to whatever situation you apply it to, so this is not just about building societies, but about business, health and relationships, nothing is immune.

If you eat a fatty meal today it won’t kill you, but if you eat one every day never allowing your body to recover, eventually you will be really unhealthy. Likewise eating an apple today doesn’t make you a healthy person, but eating an apple a day every day, will help you to be a healthy person.

In business, being rude to one customer today probably won’t ruin your business (unless they’re extraordinarily well connected) but do that every day and you won’t have much of a business for very long. Conversely go out of your way for one customer each day and you’ll increase the goodwill in your business. This is the law of compound interest.

Everyday we make hundreds of choices – what to wear, what to eat, who to employ, how to market ourselves, where to advertise. Each choice in itself is a small thing, and either positive or negative, but taken together over a period of time they propel you to either where you want to be, either in a positive or a negative direction. While we often don’t see the bigger picture, being too bound up in our own little dramas, making as many positive decisions a day as you can is only going to help you and your business move forward.

The more positive associations you have, the more leverage and momentum you create, remember the law of compound interest and aim for some positive decisions each day to get the law working for you….