Compounding resources

Previous: Habits

Compounding resources are resources which have an exponential growth factor. In the book “Atomic Habits”, James Clear shows that habits are one of these resources, which over time will lead to extraordinary results.

Habits aren’t the only compouding resource though, I can think of multiple other examples: the Zettelkasten, knowledge, and wealth.

The first of these two kind of go hand-in-hand. The Zettelkasten system grows in its ability to produce thoughts the more time, effort, and notes that are put into it. Knowledge is the same way, and the more you possess, the easier it is to acquire more.

Wealth is possibly the most obvious example of a compounding resource in this list. From a pure mathematical standpoint, it is obvious to see why. Interest is the classic example of compounding. If you invest a small amount of money over time with a good interest rate, it can grow to immense levels. Learning about finances is a great way to develop good habits around spending and saving money for it to work with you isntead of against you.