My first reaction was hope, and then what? What can we do to realize hope?

The concept of "compound interest" is familiar to most people now. It seems that if you master "compound interest", you will understand the mystery of making money quickly and getting huge returns. But I have a question: since the concept of "compound interest" has been repeatedly mentioned and spread, why are there so few people who really realize "compound interest" through the "compound interest effect"?

Compound interest, the vernacular is compound interest, and its growth curve is shown in the figure:

It's like raising a chicken, the chicken lays eggs, the egg lays chickens, and so on, and then there are more and more chickens, doubling every time. ...

This concept is very popular in the field of financial management and is now used as an analogy in other fields. The "knowledge compound interest" advocated by Li Xiaolai is a good example, and it has also become the driving force of the current "knowledge payment".

Generally speaking, when we see the "compound interest" curve, our concern is this:

The huge difference in returns before and after can easily excite the audience, take this mathematical formula as the truth, start investing confidently, and then look forward to the future.

But the fact is that not many people succeed just because they know this concept. It seems that there are so many people who can succeed. There is not much difference between knowing and not knowing the concept of "compound interest". (Generally speaking, it is not excluded that there are still very few people who have done it. )

Is there anything wrong with this "compound interest" formula?

No, we always forget the gap between theory and practice.

Some people fail, maybe they have a chicken that can't lay eggs at all!

Compound interest can really start small, then stick to it and wait for the day when the income doubles. However, the object of "compound interest" should be carefully selected.

For example, you decide to get into the habit of brushing your teeth every day. This thing will really benefit you. Your oral hygiene is getting better and better and your teeth are getting whiter and whiter. But! Stick to it, you can't wait for the compound interest effect!

Why? From the results, because oral hygiene is very clean, it is impossible to be "cleaner" and teeth can only be so white; From a technical point of view, no matter how perfect the teeth are, they can only brush themselves and cannot expand their influence. (Of course, it's important to insist, and it's good to keep clean. )

Therefore, in order to "compound interest", the premise is to ensure that there is a chicken that can lay eggs, that is, something that can grow and accumulate fruits.

If you have a lot of assets, as long as you don't splurge, you can definitely go to Qian Shengqian, but the problem is that we don't have such high-quality "chickens". And knowledge has become the choice of most people, because today's knowledge is available everywhere and the cost is very low, so it is inevitable that you and I choose such a "chicken".

However, knowledge is still a general concept.

What kind of knowledge should be accumulated? What can I do to accumulate knowledge? How to accumulate is correct? After accumulation, how can we be sure that it is helping us "make a profit"?

Because we are tempted by "compound interest" and invest in something, we ignore that this action of investment is not compound interest, and the real "compound interest" action has not yet begun.

I used to keep accounts for five years, and every expenditure every day was recorded and synchronized by software. However, apart from doing bookkeeping for five years, I still have a great sense of accomplishment. The accumulation of accounting data has not brought any change to my life at all, let alone compound interest.

It stands to reason that financial management and "compound interest" are more closely related. Why? The reason is simple: although I am constantly investing time and energy, what I do is the accumulation of numbers, not accumulation. There is no budget target, no analysis of the current month's expenditure, no accumulation of consumption experience, and even no plan to guide daily expenditure. How can we accumulate it? How can I compound interest?

So, I gave up the habit of these five years, and I don't feel sorry. At least I didn't continue to invest more time and energy in a matter where compound interest is impossible.

This experience made me understand a simple but very important truth:

Judging whether a thing is worth doing depends on whether it has brought changes to your life! Even the smallest change is good.

When I was studying compound interest, I saw two tables:

In other words, the key to maximize compound interest lies in its persistence and stability. The profit rate is not the most important factor. Even if the amplitude is large, a fluctuation can have a huge impact, so the most important thing is stability.

Think carefully, when we accumulate, do we really achieve "doing it every day" and "completing the target amount every day".

Take writing as an example. If you don't write 1 day, 1 ,000 words, 1, 300 words, 1 day, it's definitely not as good as writing 1 ,000 words every day.

Moreover, it is very important whether you think and try to figure out your skills and feelings during writing. It's still useless to write like a diary.

On this road, the most difficult thing is that the road is too long, so that you begin to be uncertain on the road, begin to doubt its correctness, and persist in not seeing the dawn. ...

That kind of loneliness, there is no answer, you don't know whether the result will come in the end, but the process is really tired and the outcome is uncertain, but the pain of persistence is real. Therefore, not everyone can persist until "compound interest" begins to work, which is why only a few people can do it. The principle of success is still the simplest.

Sure enough, don't be carried away by a gorgeous concept.

Compound interest, in the final analysis, is a process of correct choice, accurate quantification, lonely persistence and self-belief. After this ordinary process, you can achieve gorgeous "compound interest".