Value of Time Compounding – Pratik Upacharya – Medium
Compounding the returns is one of the most essential parts of investing. Money is what the common masses focus on without even realizing that their approach is full of errors. Time is by far one of the most crucial aspects of compounding. As we all are probably aware, Warren Buffet became a billionaire due to the 22% compound interest every year.
How Does Compound Interest Work?
In order to dive into the details of time compounding, first, you need to have a firm grasp on how compound interest actually works. Compound interest is a type of investment return that provides an opportunity to earn even a further return. If you look at the big picture, say 20–50 years of investment, the gain is massive.
On that note, you all must have repeatedly come across the particular quote “Time is money” by Benjamin Franklin. Well, the quote has a deeper meaning than you thought it could. It implies that time is a far more valuable asset in our lives than money. All the while we keep our focus on money when we should have been finding out ways to enhance our productivity by avoiding futile wastage of time.
The Time Value of Money and Compounding
Now, having understood the concept of compound interest, what if we apply the same to time? Let’s say we work for 8 hours every single day, and out of that 2 tasks such as starting your PC and initiating certain programs take up 30 minutes of your time. It seems negligible at first but causes immense wastage of time when you count it all keeping a longer duration in mind. Try to look at it this way. If you count 30 minutes worth of time going in vain, then you account for 15 hours getting wasted each month. Getting it now? Elaborate it, take into account a year and you will be shocked by the number of days getting wasted in an activity you never gave any relevance to!
But what if you could write a script to automate that? Even if it saves 20–25 minutes each day, think about how much productivity you can achieve in a month or a year. You will be able to accomplish more in 8 hours. Building on that, I would like to throw light on some tips and tricks I use for compounding time.
Time Compounding Tips and Tricks
1. Task Batching
Task batching might seem like a puzzling notion at first, am I right? Let me simplify it for you. Suppose you check your email 15 times a day. Well, a few screen taps on a smartphone don’t seem like much waste of time, right? But if you think about it, checking your email multiple times in a day prompts you to reply to the emails and half of your time is spent on an activity that you could have saved a lot of time on.
If you stick to a schedule like checking your email once or twice a day, you can reply to all the emails in a single go. Moreover, when you focus on a single task at hand, the productivity automatically rises. Another instance includes bill payment. Suppose you have 20 bills to pay including but not limited to the phone bill, electricity bill, and so on, instead of paying it on different days, prescribe a single day for the payment of all your bills. Sounds efficient, right?
2. Automating Using Programming or Tools
There is a misconception rampant across the world regarding people who like to automate stuff. It says that only lazy and lethargic people refrain from doing a task themselves. While it might be true in some cases, relying on technology is a smart move in today’s fast-paced lifestyle. Why do it yourself when there is a technology for accomplishing the same task in a lesser amount of time, huh?
Properly utilizing programming tools and techniques for carrying out tasks aids you in maintaining the required level of productivity and enhance your efficiency by helping you reach your goals quickly. For instance, you can connect everyday apps for automating your work and enhance your productivity with the help of Zapier, that is, a web-based service used for app integration.
3. Updating/ Upgrading Your Skills
When you enhance your skills, you open new doors for being more productive and increasing the revenue generated from your work. A skilled person normally takes less time than an individual who isn’t skilled enough. As you all are probably aware, most of the programmers or writers use tools such as Visual studio code, MS Word or some other editor to carry out their professional tasks. A significant amount of time is utilized in such processes but imagine how much time you can save per day if you learn up the shortcuts to these editors! Seems pretty efficient, right?
You don’t get to move forward unless you sharpen your skills on a frequent basis. The best way to do this is to utilize every second of the time you have allotted to work and make sure that you don’t let your mind drift off. Never be satisfied with the level of your skills as it creates stagnancy.
4. Remote Work
Have you ever thought that chatty coworkers can sometimes decrease the productivity even if it is an in-office environment? The common notion suggests that when a person works in an office, the output is better. Well, I don’t think so. There are immense benefits to working remotely and that is why I prefer to do it myself. After all, who is a fan of the monotonous daily hike to the office, right? There are numerous perks to working remotely which are beyond the scope of this blog. Don’t worry! I’m going to write a separate blog about it.
Let’s Sum It Up!
Make sure you give a lot of thought to what you are working on. Hang out with positive people who motivate you to move forward instead of spending time with those trying to belittle your dreams. Bottom line, as long as you are moving forward in the correct direction, the above-mentioned time-saving strategies are going to bear fruit, provided you are consistent and committed to what you do.
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