The power of habit compounding

I have to admit, the term compounding was foreign to me until recently. Since I left the corporate world, I am trying to become Finance Literate. I am learning about personal finances, how to save money, how to invest, etc.But when this term really made an impact on me, was when I read the book by James Clear, Atomic Habits. I loved this book because it mentions the power of habit compounding. It is very practical.

In this book, he talks about the importance of habit compounding. And he gives the example of going to the gym. If the habit you are working on is to get fitter, then every time you go to the gym, you add a bit of “fitness” to your body. You won’t see the results after a few days or even weeks. But after a few months, the results would have compounded and your body will feel stronger and your muscles will be more defined. You will start seeing the benefits of those tiny habits only after some time. But only if you do it regularly and often.

“… if we repeat small behaviors day after day, our choices compound into major results”

James Clear

I’ve been a member of the local gym for some time already. But between you and me: I have been taking it easy. Just doing a bit of stretching and light weights. After that, I usually reward myself by going to the steam bath, the sauna, and the pool. I love the gym, but I love more the spa!

I knew I wasn’t making a lot of effort. So, for the last couple of months, I started adding cardio and interval training to my routine. And since then, I have seen a difference in my muscles. And I also feel stronger.


Another habit that I have been “compounding” is healthy eating, of course! I avoid eating processed food. And I drink my milk kefir smoothie every morning. This has made a huge difference in my gut. And it is not only me who says it, but my doctor also said it when she last checked on my gut flora.

Although I have not been benefiting from any compound investment in financial terms yet, I am very happy my health investment is already compounding. After reading this book, I am even more motivated to continue with my tiny habits every day, so that I can continue reaping the benefits long term. This is the power of habit compounding. 

What habits are you investing in? Are they already compounding? Connect with me on Facebook!

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