Do not underestimate the compound effect

Hemant Kulkarni
2 min readMay 29, 2020

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You may have heard about the compound effect. In banking perhaps. It works the same with our skillsets in life too.

The more you grow your skills, the more they compound over each other.

The initial period of a few months to a few years can be of negligible external effects which can be disheartening. But know that in the background the compound effect is working.

Think about all the graphs you have seen of the coronavirus infected cases. That’s a compounding growth rate graph. Each new person, in theory, infects more than one person.

https://www.worldometers.info/coronavirus/

People are not aware of this effect in their lives because of the slow initial growth. But that is precisely underestimating a powerful phenomenon. It only shows its effects after an extended period during which you have been quietly accumulating skillsets.

Read The Compound Effect book by Darren Hardy for more discussion on this topic and implement it in your lives.

An example of a compounding graph. Source.

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