Albert Einstein said compound interest is the greatest discovery of all time. There is no question about it’s power. Don’t believe me? $10K invested in the all ordinaries index in Australia in 1970, would today be worth $808K.
The tough thing that entrepreneurs face is life without a wage. Money makes life better. A wage can buy nice things. Shirts, shoes, dinners at fancy restaurants, weekend trips away and mortgages in gentrified suburbs. Yes, these are nice.
The interesting thing about ‘compounding’, is that it is not limited to financial instruments. It also applies to effort.
COMPOUND EFFORT
Definition: The ability to generate significant & tangible returns through long term continuous effort via the use of human capital.
It applies to all things. Start ups, even exercise regimes. If you stay the course, the rewards are there. Can you tell I am trying to convince myself?