HOW TO USE THE VALUE OF COMPOUNDING TO BECOME A BETTER HUMAN BEING

If you have been fortunate enough to go to school and study mathematics, you must be able to recall some of the topics that you did study in school about compound interest and how money can grow when it is kept in the bank. 

Well, today i would like to talk about compound interest or compounding and how you can use the value of compounding to help you become a better human being. 

When the year begins we all star t by setting up new year resolutions or the things that we do want to achieve in the course of the year and sometimes we are not able to achieve those things but i do believe if you apply the value of compounding, you will most likely achieve your goals. 

So without wasting any of your valuable time, here are some of the things that you can do using compounding to improve your life.

1. Develop the Habit of Reading Books

You can improve your life through reading books on different subjects that you are very passionate about and the habit of compounding will help you gain lots of knowledge with time as you continue to read books on different subjects like finance, relationships and other things that you do have interest in. 

You just need to start with one book at a time and with time, you will develop the habit properly and also you will be able to gain more knowledge about different subjects and ultimately become an expert or consultant in your field of desire.

2. Develop the habit of saving money

You can use the value of compounding to help you develop the habit of saving in your life. 

it is well known that Ugandans do have very poor habit of saving and it is only very few Ugandans who do actually have bank accounts although the arrival of new technologies like mobile money are beginning to help change that but the figures are still low.  

Using compounding, you can start by saving little amounts of money every day or even every month after some good time you will have lots of money in your disposal.

3. Develop the habit of investing your income

The knowledge of compounding can also be applied to the process of investing. 

Just imagine if you had a few chickens in your backyard and you took very good care of those chickens so that they were able to produce more chickens, I bet in a few years you would be having hundreds of chickens around you and you will ultimately end up a millionaire over time. 

That’s how businesses grow. 

We have seen companies like Amazon start from the garage and before we know it , just from selling books it is now an everything store worth billions of dollars. 

That’s the power of compounding. May be Albert Einstein one of the greatest scientists and geniuses was right to say that compounding is the eighth wonder of the world and Bill Gates the co-founder of Microsoft said that we do overestimate what we can achieve in a year and do underestimate what we can actually achieve in ten years. 

So if you truly want to change your life for the better, use the power of compounding. 

Will Power will help you start off on your goals but ultimately the habit will help you go far in achieving your goals even more than you thought you could. 

We should all break our goals into small bits so that we can ultimately execute them and achieve our goals.