Brian Braudis’ 1-Minute Morning Memo: June 1, 2020 – Compound Interest Grows in Either Direction

interest grows in either direction.Money markets, habits and, even photosynthesis increases in proportion to size. But interest grows in either direction.

The law of compounded growth states that the rate of increase is directly proportional to the amount of capital. Lord Kelvin called this the compound interest law. 

What is essential to internalize is this natural law creates a compound effect based on what is practiced. Small, consistent efforts over time build upon one another and grow exponentially.

Natural laws are impersonal. They respond to what and where you add, cultivate, and build. The rate of increase could be in either direction.

+ Upward growth results from adding and building up. Think retirement accounts and tomato plants they produce directly proportional to their size.

– Downward growth results from credit card charges that are carried from month-to-month. The debt increase is again proportional to size.

The growth response is impersonal.

Habits follow the same law & interest grows in either direction

If we remain open, looking for higher-order principles, adapting to the ever-changing landscape (or target), every day could serve to grow and strengthen.

On the other hand, the stresses, difficulties, frustrations, and demands of life compound with resentment, deceit—negativity.

If we let bad habits gain the upper hand, we are faced with an avalanche that could bury us.

You grow proportionate to where you invest.

Character will grow exponentially in either direction. You can see this play out on the nightly news.

It’s easier to build than it is to rebuild, as is so simply demonstrated in the lesson of Humpty Dumpty.