← Mental Models
Mental Models · Card 5
Compounding
Small gains look like nothing.Then suddenly they don't.
- Early years
- Last few years
- Looks like nothing
- Most of the growth
Small, consistent gains don't just add up; they multiply on top of themselves, which is why they look like nothing for a long time and then suddenly don't.
In Practice
₹5,000 invested monthly for 25 years grows to far more than 25 years of contributions added up; most of the growth happens in the last few years, not the first.
Generic Example
A habit of reading ten pages a night looks like nothing after a week. After five years, it's dozens of books no willpower-fueled binge could match.
Ask yourself
Am I judging this by what it looks like after one month, or after ten years?