Transcription
[music] You make efforts, but each time it happens as if for the first time. You have to solve the same problems and do the same things over and over again. You start doing something, but then quickly abandon it because it seems like it's not working. You look at successful people and think they have some kind of secret. A secret inaccessible to you. In reality, all this happens because you do not understand one of the most powerful tools of the Universe, the compounding effect. It is the compounding effect that determines why some people's results get better and better, while others, despite all their efforts, remain at the same level. Albert Einstein called the compounding effect the eighth wonder of the world. You know that one of the richest people on the planet, Warren Buffett, earned more than 90% of his fortune after the age of 56. He started investing at 11. And by the age of 56, he had accumulated only 1% of his current wealth. And after 56, he earned over 160 billion dollars. How is this possible, you ask. This is the power of compound interest or the compounding effect. We have all heard the story since childhood about how a drop wears away a stone, how a turtle overtakes a hare, how small steps lead to big results. But few truly understand how this principle works in real life. We live in a world where we are surrounded by stories of instant success, miraculous transformations, and magic pills. We see the results, but we don't see the process itself that led to them. From the first day of life, we observe the manifestation of the compounding effect. We see how a child grows every day, how trees grow taller year after year, how knowledge accumulates lesson after lesson. But for some reason, when it comes to our own goals, we forget about this principle and expect instant results. So, what is the compounding effect? The compounding effect is a phenomenon where small and regular actions, efforts, or your investments accumulate over time and lead to significant results or changes in your life. Thanks to the fact that each new result builds on previous ones, creating exponential growth instead of linear growth. To put it simply, the compounding effect is what turns your small, unnoticed steps into huge achievements, thanks to the fact that each result reinforces or facilitates the next. Imagine a small snowball at the top of a mountain. When you push it, it starts rolling down, gradually picking up and gathering more and more snow. At first, of course, the growth is imperceptible; it's just a slightly larger snowball, then a little bigger, but with each rotation its surface increases, allowing it to capture even more snow. And at the foot of the mountain, the small snowball turns into a huge snow boulder or even an avalanche. The important thing is that most of the growth happens not at the beginning of the journey, but closer to the end, when the accumulated mass begins to grow geometrically. But what about the stories of instant success, you ask? Is it all a lie? Of course not. But what seems like instant success is actually almost always the result of long accumulation. We just see the breakthrough moment, the final picture, but we don't see all the small steps that person took daily. Today, we will talk about what the compounding effect is, how it works in different areas of life, and how to use it to achieve your goals. This video is a continuation of my series of videos on superposition. I would like to warn you right away that this video will not be useful for those who want everything at once, preferably without effort. This video is for those who do not believe in fairy tales and fables and understand that behind every stroke of luck and every major success lies daily, invisible, and painstaking work. Do not expect me to give you a secret secret on how to achieve everything without doing anything. The video will be useful for everyone who wants to understand how to make sure that your past successes or efforts are not nullified, but help you achieve more with less effort. In essence, how to make your past work for your future. Today we will understand that success is not an event, but a process. That patience and consistency are not just beautiful words, but real tools for achieving goals. By understanding the concept of the compounding effect, you will see that achieving great results does not always require supernatural abilities and breakthroughs. All that is needed is an understanding of how the compounding effect works and a willingness to use it in your life. The compounding effect does not negate the predictable luck we talked about in previous videos. The compounding effect is simply another tool of superposition that explains how to create a situation where you are predictably lucky. And the whole world wants you to achieve your goals. To begin with, let's understand what the compounding effect is and how it works. The compounding effect is a phenomenon where small, regular actions or efforts, or investments, accumulate over time and lead to significant results or changes. You see, it's a simple definition, but behind it lies immense power. The compounding effect is what turns your small steps into big achievements. It allows you to achieve significant results without having to make heroic efforts. Instead of trying to do something grand in one go, you can take small steps, but every day, and over time these steps will lead you to a big goal. The compounding effect is, in principle, not a new concept. Folk wisdom has reflected this principle for centuries in proverbs and sayings. Let's take, for example, "A penny saved is a penny earned." This proverb emphasizes that small savings or economies can turn into a significant sum over time, or "Patience and hard work will conquer all." This saying means that persistence and constant effort will sooner or later pay off. "A drop of water hollows out a stone." This proverb emphasizes the power of the compounding effect, where even small actions, repeated over time and regularly, can lead to significant changes. "The journey of a thousand miles begins with a single step." This expression emphasizes that only constant movement forward, step by step, helps to achieve goals. "Rome wasn't built in a day" reminds us that great achievements require time and constant effort. Or, as the Kaizen philosophy says, "Fast is slow, but without breaks." The compounding effect works in all areas of life. Let's look at a few examples from life. Health and Fitness. One workout won't make you an athlete, but regular workouts over a year will completely transform your body. Just as one apple won't make you healthy, but healthy eating every day for a year will significantly improve your health. In Education and Skills. One hour of studying a foreign language won't make you a polyglot, but daily practice for a year will allow you to communicate fluently in that language. Just as reading one book won't make you an expert. But reading books every day for a year will give you deep knowledge in your chosen fields. Let's take Finance. One small investment won't make you rich, but regular investments over many years will help you achieve significant capital thanks to compound interest. One saved amount won't change your financial situation, but the habit of saving and spending wisely every day will lead to financial stability. For example, if you invest at least 10,000 tenge monthly at 7% per annum, then after 30 years your capital will be about 12,253,000 tenge, of which only 3,600,000 is yours, and the remaining 8,653,000 is interest. This is the work of compound interest. In Personal Habits and Self-Development. One day of productive work won't make you successful, but the habit of effectively using your time every day will lead to significant achievements. How does the compounding effect work? You've all probably seen a rocket launch. Have you noticed how hard it is to lift off the ground? It literally starts gaining altitude with such difficulty. So, a space rocket is one of the most vivid examples of overcoming the barrier before receiving the compounding effect. Look, when a rocket launches from Earth, it burns 85-90% of its total fuel just to overcome the first 100-160 km and reach orbit. This is because it has to fight both Earth's gravity and atmospheric resistance. The first few minutes of flight seem extremely inefficient. A huge amount of fuel is burned, and the progress in terms of altitude and speed gained looks minimal. However, after overcoming the initial barrier, there is a qualitative change or a qualitative leap in results. Now, every kilogram of remaining fuel provides disproportionately greater effect, and the remaining 10-15% of fuel can be used for orbital maneuvers or flights for months or even years. The rocket can travel huge distances with minimal energy expenditure. This is the power or effect of accumulated efforts. Let's take another, simpler example that shows how the compounding effect works on a household level. Well, let's say you decide to go somewhere or do something. You take the first step, which is not easy for you. To do this, you first need to shift your center of gravity forward, then you need to extend your leg and take a second step. But the third or fourth step is much easier for you. Why? Because you have already gained momentum and shifted your center of gravity. You see, even in everyday household things, the compounding effect is hidden. Here's another example. The escalating domino effect. Imagine dominoes where each subsequent tile is one and a half times taller than the previous one. So, if the first tile is only 5 cm, for example, then the twenty-third tile will be as tall as the Eiffel Tower, and the fifty-seventh will be equal to the distance from the Earth to the Moon. You started with 5 cm, and the fifty-seventh is already the distance from the Earth to the Moon. Let's take examples from business. First, you invest a huge amount of resources of your time, money, and effort, receiving minimal return. Most of the fuel or your energy is spent overcoming initial resistance and creating a foundation. But after reaching a certain critical mass, there is a qualitative leap. Further movement becomes many times more effective, and the same efforts bring you many times greater results. Just like with a rocket, the most difficult part of the journey is the beginning. But after overcoming the barrier, the barrier of initial difficulties, the compounding effect starts to work for you, allowing you to achieve grandiose results with much less effort. The same, in principle, happens with any of our efforts. At first, the results may be imperceptible, and it may even seem like we are treading water. But if we continue to take the right actions regularly, then over time the results begin to accumulate, and at some point, a breakthrough occurs. The compounding effect has several important characteristics. First, progression over time. The longer you do something, the more significant the result becomes. It's like a snowball that gets bigger and bigger as it rolls down a mountain. Or, as Jackie Chan once said well, "It's easy to become successful. Just do one thing for a long time." Noticed the nuance here? Do one thing for a long time. And what do most people do? They rush around, constantly changing fields of activity, constantly looking for where to earn, instead of perfecting themselves in one thing for a long time. The second characteristic is small actions performed regularly. Even the smallest actions, if done regularly, can lead you to significant results. This is like a drop of water that wears away a stone not by force, but by frequency and regularity of falling. The third characteristic is gradualness. Accumulation happens gradually, without sharp jumps. This, of course, requires patience and perseverance. As they say, "Slow and steady wins the race." It is not for nothing that in Islam it is said that Allah gives barakah, or blessings, for two things: for risk and for patience. The fourth characteristic is the synergy effect. When regular small actions combine, they create a result that is greater than the sum of their individual parts. This is like ingredients in a recipe that together create a dish whose taste surpasses the taste of each ingredient separately. The fifth characteristic is inertia. After reaching a certain point, the compounding effect starts to work on its own. Even if you reduce your efforts, it's like a bicycle that continues to move even if you stop pedaling. Why don't many people use the compounding effect? The main problem is that we live in a world of instant gratification. We want to see results immediately, not in months or years, but immediately. We start doing something, don't see quick results, and quit before the compounding effect starts to work. Moreover, we often underestimate the power of small actions. It seems to us that to achieve great results, we need to do something grandiose. But in reality, small but regular actions often lead to greater results than infrequent heroic efforts. How to use the compounding effect in your life? First, the most important thing is to choose the right actions or the right direction. Keep in mind, not all actions lead to a positive compounding effect. Some actions can even have a negative compounding effect. For example, daily consumption of fast food or smoking cigarettes will accumulate health problems. Therefore, it is important to choose actions that will lead you to the desired results. Second. Be consistent. Regularity is the key to the compounding effect. It's better to do something small every day than something big once a month or once a year. As they say, "A drop of water hollows out a stone." Third. Be patient. The compounding effect takes time. Don't expect instant results. Remember that great achievements are made up of small steps. Fourth. Use the power of habits. Well, this is my favorite point. Habits are automatic actions that we perform without conscious effort. If you can turn useful actions into habits, then the compounding effect will work for you automatically. Let's summarize. First. The compounding effect is a phenomenon where small but regular actions, efforts, or investments accumulate over time and lead to significant results or changes. Second. To use the compounding effect, you need to choose the right actions, be consistent, patient, and use the power of habits. Third. The compounding effect works in all areas of life: health, fitness, education, skills, finance, personal habits and self-development, business and investments. Remember, great achievements are made up of small steps taken over time. Don't expect instant results. Be patient and consistent, and the compounding effect will work for you. As they say, "The road to a thousand miles begins with the first step." Take that first step today and keep taking small steps every day. And after some time, you will be surprised how far you have progressed. Well, I bid you farewell. I wish you not to lose what you have achieved and to achieve the effect where your past efforts make your future easier for you. Until next time. [music]