“It is not the big things,
but it is the little things we do everyday that makes us a champion.”
Between a salary which pays P30, 000 a month for three years
or one which gives 1 cent for the first month but doubles in value monthly for
the same period of time, what will you choose?
Without batting an eyelash, many of us will probably pick
the P30,000 per month paycheck. But if you do the math, the total salary for
the second option at the end of three years will actually be much, much higher
than that of the first!
For the first option: P36, 000 x 24 months = P1,080,000
A million may be good enough for some, but if you do some
quick Excel computation, your jaw will drop at how the underdog cent in the
second option will turn out:
Years
|
Amount
|
Years
|
Amount
|
Years
|
Amount
|
1
|
0.01
|
13
|
40.96
|
25
|
167772.16
|
2
|
0.02
|
14
|
81.92
|
26
|
335544.32
|
3
|
0.04
|
15
|
163.84
|
27
|
671088.64
|
4
|
0.08
|
16
|
327.68
|
28
|
1342177.28
|
5
|
0.16
|
17
|
655.36
|
29
|
2684354.56
|
6
|
0.32
|
18
|
1310.72
|
30
|
5368709.12
|
7
|
0.64
|
19
|
2621.44
|
31
|
10737418.24
|
8
|
1.28
|
20
|
5242.88
|
32
|
21474836.48
|
9
|
2.56
|
21
|
10485.76
|
33
|
42949672.96
|
10
|
5.12
|
22
|
20971.52
|
34
|
85899345.92
|
11
|
10.24
|
23
|
41943.04
|
35
|
171798691.8
|
12
|
20.48
|
24
|
83886.08
|
36
|
343597383.7
|
You may smirk at the measly P20.48 at the end of the first
year. But if you hold on long enough, P343,
597, 383.7 ain’t no long laughing matter either.
The Law of Compounding Interest
The above example shows the law of compounding interest, a
law so powerful that Albert Einstein calls it the 8th wonder in the
world.
What is amazing about this law is it does not only apply to
money, but also to other areas of our life as well.
That is something I discovered when I attended the third
talk in the series Jump last week at
the Ortigas Feast. Compounding interest in terms of money is something I am
aware of, but knowing that I can also apply it to my other goals is a lightbulb
moment for me.
The catch is, compounding interest is “shy” and like in the
example above, it works silently until one day we will just be surprised at how
our tiny, seemingly unfruitful efforts have multiplied into something great.
For compounding interest to work to our own advantage, we
must then learn the value of perseverance – a task which can be quite
challenging in the instant, fast-paced world we live in.
Perserverance
Perseverance is about being steadfast in reaching our goals.
It is closing our eyes to the lure of instant gratification,
knowing that great things happen to those who know how to wait.
It is about picking ourselves up and moving forward whenever
we fall flat on out face, because we have hope that our attempts will soon
snowball into an avalanche of blessings.
It is about sowing and sowing and sowing even if we don’t
see a wisp of bud growing, believing that the growth is happening underground,
and at the right time, the plants will shoot out from the Earth and our harvest
will be overflowing.
Coincidentally (or maybe not), the topic How to be a Champion in IMG’s Wealth Academy series I have attended last Wednesday complemented the lessons I picked
from the Feast.
Just do it and do it
until the job gets done
As Executive Vice Chairman Noel Arandilla said, it takes ten
years to build an overnight success.
His advice whenever we feel like quitting is:
“Just do it and do it until the job gets done.”
Struck by that, I made a note of situations when I know that
quote will be useful.
Whenever I feel overwhelmed or scared or both to do
something that I know will help me grow, I’ll just say: “Just do it and do it
until the job gets done.”
Whenever I feel that the words are not coming out and I’m
starting at a blank MS Word document, I’ll just say: “Just do it and do it
until the job gets done.”
Whenever I feel lazy or tired to serve in the Feast, I’ll
just say: “Just do it and do it until the job gets done.”
Whenever I feel disappointed, uninspired, or I feel so
freaking alone because I can’t find the right company to hang-out with, I’ll
just say: “Just do it and do it until the job gets done.”
I will keep on persisting and giving my all, even if my
“all” may seem to be so small and unimportant, because I know that I am saving
on the greatest bank in the universe, where the banker, God himself, will give the
most generous interest of all for my “one cent.”
How about you? What’s your one cent?
Labels: Musings and Opinions, Travels and Events