Compounding Curiosity

 

Let me start with a couple of quotes..

“Compounding is a testament to the value of consistency. Small, incremental progress over time can lead to remarkable achievements”

“The power of compounding is not just about money, it applies to every aspect of life. Small, consistent efforts can lead to remarkable results over time”

Whenever we hear the word compounding the graph of Warren Buffet’s net worth zooming in the last 5 years or the formula of compound interest flashes before our eyes. But we are all aware that apart from the money aspect, compounding works in almost all aspects of our day-to-day life.

We have all seen & experienced thousands of such live example day in day out, but may probably not realize that these are all case studies of compounding working for mankind in non-financial aspects of life. Readers can google to find out more about Malcolm Gladwell’s 10,000 hours rule to check how this works!

I would like to share three such case studies of very normal people with whom I have personally interacted in my immediate close circle of families / friends.

 

Compounding & Spirituality

When I think of spirituality within my immediate family, and how compounding has worked for them, my mother late Smt Renuka fits the description perfectly. Amma was a government employee who took voluntary retirement in 1994 at the age of 54 years. Till this time, she was a devout lady visiting temples, observing fasts, singing bhajans, etc along with her career as a government employee. Because of her office timings she could not do these activities regularly. After her voluntary retirement she got introduced to the Prajapita Brahma Kumaris Ishwariya Vishwa Vidyalaya (BK) and her interest in spirituality took a different dimension.

She started visiting the BK centre to attend the Bhagvat Geeta classes regularly, almost every day. She started getting up at 345 AM to do her amrit vela meditation / yog. She started volunteering for performing seva at the local centre & later at the headquarter level. Her grasp of the four subjects - gyan, yog, dharna & seva was so diligent that very soon she came to be recognized as the most regular student in her class, she also got a prize / certificate in an annual function for having 100% attendance!

This regular attendance and regular imbibing of the values & education imparted by the Vishwa Vidyalaya gave her so much composure, peace, happiness and confidence in life that in the family and friends circle too she came to be referred to as a perfect example of how one ought to lead their retired life.  I have seen and interacted with others who attend such spiritual sessions on and off, but have never experienced in them the level of composure and happiness which I have seen in Amma. Needless to say, compounding in this aspect of life has worked wonders for her!

 

 

Compounding & one’s career (Insurance Agent)

Sunil Awale joined our organisation sometime in 2000, probably even earlier. He started his career with us with a nominal salary as a part time employee. To augment his cash flow, he took up an agency for selling life insurance policies with the LIC of India.

As I write this article in Sep 2023, Sunil has been with us for over 20 years. He is a full-time employee with us now and his salary as an employee with us has grown substantially. However, he is still continuing his insurance agency albeit on a part time basis. But his commission income from the insurance agency is almost equal to what he is earning from his full-time employment with us. He occasionally takes a day or half a day off from his employment to cater to his insurance agency business.

Whoever gets associated with him could immediately understand his passion to his insurance agency profession. He attends several classes & seminars both offline & online. His WA status almost always displays some image related to insurance business. His knowledge about the practical aspects of how the industry works has increased phenomenally.

Frequently he flaunts a trophy or a medal or a certificate to his colleagues casually mentioning to them that this is due to his achievement for a certain level of performance in his branch. Assuming he clocks atleast the minimum requirement of 12 lives in a year, he has clocked atleast 240 (12 lives * 20 years). Assuming there is duplication to the extent of 40 lives across multiple years, it still amounts to 200 lives / clients which will provide him with a renewal commission. For someone who is doing life insurance agency on a part time basis this is possible only because of the sheer compounding effect.

 

 

Compounding & one’s hobby (long distance running)

Dr Ramesh Raman, my Jijaji (brother-in-law) a chemist by profession, used to lead a sedentary lifestyle. Home to office, work, back to home, TV & movies during holidays - this used to be his lifestyle.

Sometime around 2006 he took it upon himself to run to keep himself physically fit. He started out by first participating in the immensely popular Standard Chartered Mumbai Marathon (now Tata Mumbai Marathon). Alibaug Beach marathon, Customs and Navy marathon followed.

After a couple of years, when he realized the immense benefits of running regularly, he started pursuing it more seriously. Instead of waiting for an organized run to be announced, he teamed up with a couple of neighbours and started running on fortnightly basis.

Ramesh along with my brother Vaidy started traveling across India to participate in runs, Goa being their favorite. Several full marathons & half marathons later, 2019 saw them representing India in the prestigious Berlin Marathon.

As I write this blog today, in September 2023, Ramesh has participated in several half, full and ultra marathons. He has run several thousand kilometres. He is maintaining a very healthy lifestyle and a fit physique. His stamina can put any 20 or 30-year-old to shame. And all he has to thank for this is his untiring and continuous pursuit of run, run & run and the compounding effect of the same!

About the author