Compounding Lessons in Swimming
Have you ever noticed that when you set out to swim, the first few rounds do seem like an ordeal and as you continue to swim, it increasingly gets easier.
The first 5 rounds seem to be the toughest. The next 5 easier. The next 5 even more easier but the last 5 seems like a breeze.
At the end of 20 rounds, if you have spare time, doing another 5 is a non-issue. It just gets done.
Isn’t this quite counter-intuitive.
Normally one gets tired with time. But in exercising one notices quite the contrary. Your energy levels rise as you exercise more.
This is so much like ‘power of compounding’ in personal finance. If you do an SIP for 15 years, the initial years need not leave you so happy because your assets may not have moved up much.
But if you sustain your investment zeal and take the journey across 15 years, you’ll realise that you are now having fun and making up your mind to invest in the next 5 years isn’t much of a challenge.
Also the wealth created over the next 5 years turns out to be more than the wealth created in the first 15 years.
As they say, ‘first you work for your money and then your money works for you’.
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