Compound Interest is for People Too
Save $20,000 when you’re 24 and let it compound for 40 years. At 4%/yr interest you have $96,000 and at 6% interest you have $205,000. Compound interest is a beautiful thing.
People work the same way
The quality of people you surround yourself with is the biggest determining factor for how good you will be at whatever it is you want to be. Surround yourself with entrepreneurs, engineers, artists, or parents who are just slightly better and the impact will compound over time.
Are you compounding your life’s purpose with 4% interest people? With 6% interest people? Is there an opportunity to compound at 20% interest, if even only for a few years?
I’ve seen it happen around me for the last 20 years. People that I started in the same place with, and had the same potential as, are now either far ahead or far behind — whether it be in the military, entrepreneurship, civil service, academia, or family life. Almost universally, the people who are far ahead, optimized to be around the best people.
Note: This is not just for careers. If you want to be a better parent, spouse, or friend then surrounding yourself with people who are better spouses, parents, and friends will compound in the same way.
Srujana, 
Bobby, 
Huey Kwik 3:28 pm on April 26, 2012 Permalink |
Never eat alone.
avichal 3:29 pm on April 26, 2012 Permalink |
+1 to that
Abie Katz 4:48 pm on April 26, 2012 Permalink |
I think that the quality of people that you can surround yourself can compound at a much quicker pace–even faster than 20%–especially when you are just starting out.
I think it is not just about surrounding yourself with the best people, it is about improving yourself as well so the “best people” will want to be in your social circle as well. Network + Be likable + Find ways to add value = Win!
avichal 4:52 pm on April 26, 2012 Permalink |
Agreed 100%.
Bobby 5:55 pm on August 18, 2012 Permalink
Compound that!
Tina Del Buono, PMAC 6:05 pm on April 26, 2012 Permalink |
Great post!
Saurabh Hooda 1:06 am on July 18, 2012 Permalink |
Very true Avichal. A friend of mine generally says, “Your average salary is the average salary of people with whom you interact on daily basis.”
Srujana 5:05 pm on August 31, 2012 Permalink |
Hi Avichal,
Its a great post….and many seem to agree with it…including me. But I have a few questions for you. If you had friend who were…let’s say…. not better than you, wouldn’t you want to make their life better by being a positive influence in their life? Maybe, they befriended you because they look up to you in someway!
I feel life is not all mathematics. There might be logic but there are emotions and feelings involved. One cannot afford to be all selfish