Author: Pramod Veturi, CEO, International Business
The topic of “Compound Interest” has always fascinated mankind. Einstein is supposed to have said that “Compound interest is the eighth wonder of the world.”
Benjamin Franklin possibly gave the simplest description for compound interest this way “Money makes money. And the money that money makes, makes money”. It is easy to appreciate the power of compounding when it pertains to Money.
But, beyond Money, compounding is also a life principle that works to our advantage in other critical aspects of life where small but smart actions taken consistently in time lead to big benefits.
Here are three specific areas where I believe compounding plays a vital role in the context of a working career.
1. Developing Domain Expertise- When you invest your curiosity, focus, and effort consistently in any specific area, your expertise compounds over time. You develop deep knowledge and understanding of a field and you become a domain expert.
2. Building Your Network- When you commit time and attention to authentically connect with people you work with, you develop a network of deep trusted working relationships. The relationships compound over time to become your personal network helping you get your big breaks later in your career.
3. Creating Personal Reputation- Compounding also happens when it comes to reputation. Beyond results, you have to be consistently visible to start developing a reputation. A good reputation compounds over time and starts creating an impact. People begin to take notice- as the problem solver or the structuring lady or the details guy, etc. Over time, your reputation becomes the wind in the sails of your career.