MOC: [[Mental Models|Mental Models]]
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The idea is basically that if you benefit from an interest rate on any unit, reinvesting the benefits will compound over time toward exponential and extraordinary results.
A simple formula is:
1 unit compounding for 50 years at 10% yearly interest rate will equal to 117 units in the end.
This notion comes from the world of finance but can be applied widely:
- Social relationships - the more you have, the more you get from your 3rd circle
- Physical health - working out allows you to reap compounding rewards
- Learning - the more knowledgeable you become, the more connections you can make
=> This last point connects to [[Memory and the brain]] as making new connections is key to remembering and use units of knowledge
=> [[How to build huge social impact]]