Small improvement or deterioration makes Big Difference
Though it includes some text, it simply denotes what
1% of improvement or deterioration can do to us within a span of 365 days.
We in the age range of 18 to 40 call yourself young.
And what most of the young people do with their 24 hours in a day, that decides
their future.
A normal young guy’s routing is like waking up
around 8AM, have tea, office then back to home, watch TV or movie, mobile, Facebook,
WhatsApp, chitchat and sleep around 1PM.
What we are missing here: Reading, Learning, Health,
Saving, Investing, Knowledge, Family etc. We are losing the most precious element:
Time
Why I am talking here this all, I am trying to bring
the attention to the small Changes or habits, if we change, we can achieve a
lot.
As the picture shows a small fraction change 1%
makes the 1.01 to 37.8 in 365 days with compounding. And the same time (365
days) with 0.99 makes it to 0.03.
This is a big difference with only small number 1%.
Now let apply the same formula to our daily habits,
Routines:
1: For the people who don’t read, let see just start reading only 5 page
per day. Check the calculation below:
Day
|
Page
|
Time
|
Total Pages
|
1 Day
|
5
|
10min
|
5 pages
|
7 Days
|
5
|
10 min
|
35 pages
|
30 Days
|
5
|
10 min
|
150 pages
|
365 Days
|
5
|
10 min
|
1825 pages
|
So 1825 page = 6-7 book on an average 300 pages each
book
Time spent: 3650/60=60.83 hr=2.53 day
So, with a 10 min reading daily will bring us the
knowledge of 6-7 books, that will be a research of 5-10 years.
Sir Isaac Newton said:
By voracious reading we can learn lot of things from the great
minds of the world.
2: On
Saving and Investing:
On Saving,
let’s start with the same rule:
5000 RS
per month with 5% interest rate from Bank:
Year
|
Year Deposits
|
Year Interest
|
Total Deposits
|
Total Interest
|
Balance
|
1
|
60,000.00
|
1,650.09
|
60,000.00
|
1,650.09
|
61,650.09
|
2
|
60,000.00
|
4,804.22
|
120,000.00
|
6,454.31
|
126,454.31
|
3
|
60,000.00
|
8,119.73
|
180,000.00
|
14,574.04
|
194,574.04
|
4
|
60,000.00
|
11,604.86
|
240,000.00
|
26,178.90
|
266,178.90
|
5
|
60,000.00
|
15,268.30
|
300,000.00
|
41,447.21
|
341,447.21
|
6
|
60,000.00
|
19,119.17
|
360,000.00
|
60,566.38
|
420,566.38
|
7
|
60,000.00
|
23,167.06
|
420,000.00
|
83,733.44
|
503,733.44
|
8
|
60,000.00
|
27,422.05
|
480,000.00
|
111,155.49
|
591,155.49
|
9
|
60,000.00
|
31,894.72
|
540,000.00
|
143,050.21
|
683,050.21
|
10
|
60,000.00
|
36,596.23
|
600,000.00
|
179,646.44
|
779,646.44
|
5000 RS
per month with 8% interest rate from FD:
Year
|
Year Deposits
|
Year Interest
|
Total Deposits
|
Total Interest
|
Balance
|
1
|
60,000.00
|
2,664.63
|
60,000.00
|
2,664.63
|
62,664.63
|
2
|
60,000.00
|
7,865.76
|
120,000.00
|
10,530.39
|
130,530.39
|
3
|
60,000.00
|
13,498.59
|
180,000.00
|
24,028.97
|
204,028.97
|
4
|
60,000.00
|
19,598.93
|
240,000.00
|
43,627.91
|
283,627.91
|
5
|
60,000.00
|
26,205.60
|
300,000.00
|
69,833.51
|
369,833.51
|
6
|
60,000.00
|
33,360.63
|
360,000.00
|
103,194.14
|
463,194.14
|
7
|
60,000.00
|
41,109.51
|
420,000.00
|
144,303.65
|
564,303.65
|
8
|
60,000.00
|
49,501.55
|
480,000.00
|
193,805.20
|
673,805.20
|
9
|
60,000.00
|
58,590.13
|
540,000.00
|
252,395.33
|
792,395.33
|
10
|
60,000.00
|
68,433.05
|
600,000.00
|
320,828.38
|
920,828.38
|
In Shares
Market, assume you have invested in very good MF or shares like Mr. Warren
Buffet. Assume with 20% interest rate:
Year
|
Year Deposits
|
Year Interest
|
Total Deposits
|
Total Interest
|
Balance
|
1
|
60,000.00
|
6,914.28
|
60,000.00
|
6,914.28
|
66,914.28
|
2
|
60,000.00
|
21,594.68
|
120,000.00
|
28,508.96
|
148,508.96
|
3
|
60,000.00
|
39,495.82
|
180,000.00
|
68,004.78
|
248,004.78
|
4
|
60,000.00
|
61,324.32
|
240,000.00
|
129,329.10
|
369,329.10
|
5
|
60,000.00
|
87,941.79
|
300,000.00
|
217,270.89
|
517,270.89
|
6
|
60,000.00
|
120,398.90
|
360,000.00
|
337,669.80
|
697,669.80
|
7
|
60,000.00
|
159,976.81
|
420,000.00
|
497,646.61
|
917,646.61
|
8
|
60,000.00
|
208,237.77
|
480,000.00
|
705,884.38
|
1,185,884.38
|
9
|
60,000.00
|
267,086.74
|
540,000.00
|
972,971.12
|
1,512,971.12
|
10
|
60,000.00
|
338,846.66
|
600,000.00
|
1,311,817.77
|
1,911,817.77
|
So, small saving with proper investment makes huge difference with
time.
You can compound the same rule of small on Habits, Health, On Negative
aspects like Bad Habits Smoking/Drinking
Thanks,
Mahesh
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