CategoriesObserveThink About ItTime

See Compounding In Nature

Financial compounding is sometimes considered a wonder of the world. However, you can see compounding in nature too, if you look for it.

Let’s first review the common example of a penny doubled every day for 30 days. Would you rather be patient for 30 days or have $1m today?

Being patient pays off. After 30 days of doubling, that humble penny will be worth over $5m!! This is why consistent and frequent saving and investing is important for financial freedom. In the longer run, the difference can be very large.

We see compounding effects elsewhere too. Global population growth has shown strong growth over the last 100 years. It took thousand of years to reach the first billion people on Earth (1804). The second billion took 123 years. The third billion was only 33 years after that. You get the picture.

You also see this in animals, rodents, bugs, birds etc. And think how a chicken can produce one egg per day. Get a rooster involved and you can soon have dozens of chickens laying eggs and producing more chickens And more eggs to eat. Now some people aren’t so patient and want to eat the chicken for meat on day one. And then struggle or starve after that.

Think ahead, be patient and let nature take its course. When you see compounding in nature, use it to your benefit.

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CategoriesActionObserveReframe your thoughts

Look To Nature For Answers

When I am not sure how things naturally happen, I look around. I consider how things are in the Animal Kingdom. I look to nature for answers.

Look at the trees, butterflies, monsoons, fires, lions and gazelles. You will see things play out naturally. No human interference or political interest group. There are no TMO, VAR or other instant replay opportunities.

Many species move in groups, though some are solitary. Some groups, like zebras will hang around gazelles or water buffalo. Elephants and giraffes can be found together too. But you don’t see the lion, leopard or cheetah chumming with the vegetarians too much.

Vultures are a unique bird of prey. They clean things up. Every animal plays its part in the ecosystem. You may like some more than others but they all have a unique contribution.

Is life fair? Should the lion attack, and feast on, the weakest gazelle or youngest zebra? Or should the herbivores be left alone and therefore the lion and lion cubs starve to death?

If people were to get involved, they might have the lion go vegetarian. But that might have other consequences such as over population of herbivores.

Things tend to evolve naturally, both good and bad. And they tend to naturally self-correct if things go too far in either direction. So we may be best to live and let live.

Look to nature for answers.

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CategoriesObserveThink About It

Nature Is So Natural

Nature is a law unto itself. It does what it wants and there aren’t any consequences for it. Nature is so natural. It’s lovely.

Nature is one of those things that many people simply refer to in the positive first. There is a lot of talk about getting outside, getting back to nature and being in the great outdoors.

When saying such things, I assume most people aren’t thinking about hurricanes, rattlesnakes and Great White sharks. They are more likely to be thinking about stopping to smell the beautiful roses, petting wild (but friendly) ponies and lovely hikes, in nice weather, on well maintained trails.

Nature can be stunning, fascinating and wonderful. It can also be harsh, severe and unyielding. Nature is not politically correct. It is territorial. It can be monitored and in some cases tamed. However it always remains wild and unpredictable.

Earth, wind, fire and water can cause untold damage and significant loss of life. Nature is not playing around. You may lull yourself into a false sense of security but to your own demise if you are not careful.

Nature is so natural. There is no hidden meaning, motive, pretence or shenanigans. It can give and take. You have been warned.

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