Many things in life compound – skills, relationships, money etc.
Money is the easiest to measure. But measurability is not the same as importance.
Skills, relationships etc. are difficult to measure. That creates a dissonance for us. We focus on what we can measure over what we can’t.
So why are skills and relationships more important?
You build great skills – > Skills compound – > More money later (Logical)
You make more money early on – > Money compounds -> You build great skills (Illogical)
Skills have higher leverage. The compounding is unidirectional.
You build great relationships – > Relationships compound -> Future opportunities and more money later (Logical)
You make more money early on – > Money compounds -> You build great relationships (possible but do you really want relationships that are there just because you are rich) – > These relationships are unlikely to compound
Once again, the compounding is unidirectional.
Skills and relationships compounding can lead to money compounding. The other way is unlikely. It is difficult to accept this when you are in your early 20s. But think about this and apply it to your life. Use the runway to fly high.
