All my thoughts on compound interest originate from my understanding of the formula of compound interest. I hope my thoughts have some guiding significance to real life. Now I will record my understanding of the characteristics of compound interest here and share it with you.
The first is goal orientation. Personally, I think compound interest thinking is aimed at the final result. It requires that everyone with ideals should have clear goals and be quantifiable, so that they can allocate appropriate workload every day. This thinking is different from that of domestic education. The education in China places too much emphasis on exam oriented education, and students' learning purpose is often to cope with exams, rather than to strive for their own ideals. Therefore, in such an environment of quick success and instant benefit, it is difficult to promote compound interest thinking.
The second is the increasing nature of growth. As long as the goal is clear and reasonable, the final goal can be achieved after the executor completes the goal of each stage step by step. In the process of completing the goals of each phase, the longer the time, the greater the gap between the goals of the two adjacent phases. This conforms to the development law of things. To put it simply, the first one will take the longest time, the second one will be very short, and the third one will be even shorter. Every increase of one million yuan in the future will conform to the above rule. This means that after you have a certain amount of capital, it is very possible to achieve higher goals. Dare to imagine, there is no "fantasy", there is "sky opening". This is something that many people do not know at all. It can only be understood after certain data calculation. So lazy people can hardly understand this.
Third, the earlier the better the timeliness. The role of compound interest needs to play a role in the time tunnel. If the action is over and the time is short, the role of compound interest will not be too obvious. So it's better to plan everything and act as soon as possible. People with strong execution often act in advance to gain time. With goals and no time, compound interest will not work. So when you have a goal, you need time, and the most important thing is to do it. If they don't do a good job, the final goal will not be achieved.
Among the above three characteristics, I think the first is the most important. Without goals, everything is empty talk. But the goal is not the only condition. Only when you have goals, time, and good things to do, can you achieve your goals in life.