Take a look at any financial blog, article or newspaper and the same message appears again and again: You want to be earning interest, not paying it! Obviously this relates to money and the idea of paying interest to borrow it (or receiving interest for lending it). Compound interest is where you start to pay/earn interest on-top of other interest. Very quickly this can snowball and lead to a debt emergency or financial independence at the other end of the scale.

However, I believe you can also use the mathematics of compound interest to Compound Your Life!

Think back to your school years and what you were told from a very young age: Work hard, pass your exams and get a good job. Any 8 year old will be able to tell you this and it’s a great example of early life compounding through life investment:

– Work hard in your first few years of school, achieve better results

– Get placed into a top set achievement group for future lessons

– Get taught the more advanced subjects

– Achieve better results

And then the cycle continues. By working hard initially, you have invested in your life and can gain life interest on this investment. Eventually your life interest will have accumulated enough to get a better job which pays a higher salary and allows you to save!

Another great example is exercise and keeping healthy. Ever seen a frequent jogger breezing effortlessly along the pavement? They make it seem so easy and it is easy for them because they’re already fit and healthy. By living a healthy lifestyle and exercising regularly, they are able to ensure they stay healthy and so future exercise comes easily. Compare this to someone who has never invested in their lifestyle and suddenly realises they’re obese. It’s going to take this 2nd person a lot more effort to get healthy again.

Investing in your life is just as important as investing in your finances. By making smaller investments earlier on, they will compound into much bigger investments later on in life and avoid you having to make sudden drastic lifestyle changes.

It can be as simple as:

– Learning to cook a few recipes from scratch which means one less takeaway a week; saving money and investing in your future healthy lifestyle.

– Watching a few Youtube videos on how to fix a leaky tap. Then building on this knowledge to learn how to replace the taps and then eventually replace the entire bathroom suite; saving thousands in plumber’s fees.

– Repairing your old bike so you can start cycling to work instead of catching the bus; again saving money and investing in a healthy lifestyle.

What life investments have you made and what has that compounded into? Contact me and let me know, or leave a comment below.