Embedded Files
00:00:04 Anthony Carl
If you're consistent in a lot of different things, you probably will make results, but it also is important if you're going to be making these large decisions with that consistency that you're going down the right pathway.
00:00:17 Brian Faust
I think one of the important parts of having success over a long period of time is almost finding failures, but only by showing up, and only by putting yourself out there having goals pursuing those, do you get to find the opportunities where things might not work, and then you can pivot to the.
00:00:31 Brian Faust
Things that do.
00:00:37 Brian Faust
Hello everybody and welcome to the Ego Lab podcast.
00:00:40 Brian Faust
My name is Brian.
00:00:42 Anthony Carl
I'm Tony.
00:00:43 Brian Faust
And today we are going to talk about compounding.
00:00:47 Anthony Carl
That's it.
00:00:47 Anthony Carl
Compounding is a magical principle, magical concept, and it can completely change the way that you think about your life and productivity and pretty much everything, including wealth and money.
00:01:01 Brian Faust
Yeah, if you've got goals, this is a great way to leverage.
00:01:04 Brian Faust
Getting there.
00:01:05 Brian Faust
Hi, Tony.
00:01:06 Brian Faust
I know both you and I love this story about compounding.
00:01:09 Brian Faust
Why don't you take us?
00:01:09 Brian Faust
Through it.
00:01:10 Anthony Carl
OK, so the story goes like this.
00:01:12 Anthony Carl
There was a king who loved chess, and he wanted to hold a chess tournament to incentivize people to participate.
00:01:19 Anthony Carl
He said he would honor any prize that they chose.
00:01:24 Anthony Carl
Upon losing to a sage, the sage requested that he merely and modestly only put one grain of rice on the first square, and then double that grain of rice for each subsequent square on the chess board.
00:01:41 Anthony Carl
The King quickly realized that he would.
00:01:42 Anthony Carl
Be unable to.
00:01:43 Anthony Carl
Fulfill the promise because on the 20th square the king would have had to put 1,000,000 grains of.
00:01:48 Anthony Carl
Rice on the board.
00:01:50 Anthony Carl
And on the 40th square, the king would have had.
00:01:53 Anthony Carl
To put one.
00:01:54 Anthony Carl
Billion grains of rice, and finally, on the 64th square, the king would have had to put 210 billion tons of rice.
00:02:04 Anthony Carl
Which, if you can imagine that.
00:02:06 Anthony Carl
That's allegedly enough to cover the entire territory of India with a metre thick layer of rice.
00:02:15 Anthony Carl
That is a lot.
00:02:16 Anthony Carl
Of rice.
00:02:16 Brian Faust
That's a lot of.
00:02:17 Brian Faust
Rice, yeah.
00:02:18 Anthony Carl
Yes, it is.
00:02:20 Anthony Carl
So that kind of demonstrates.
00:02:21 Anthony Carl
The power of compounding.
00:02:23 Anthony Carl
And it's very-- humans have a hard time even picturing.
00:02:29 Anthony Carl
How much the effect of compounding has because we don't, we just don't comprehend like the doubling of things like that.
00:02:37 Anthony Carl
Our brains aren't wired to imagine that kind of growth.
00:02:42 Brian Faust
Yeah, I think in everyone needs to talk about compounding.
00:02:45 Brian Faust
A lot of people first thought probably goes to money 'cause we always hear, you know, investing over time.
00:02:49 Brian Faust
But as we're going to talk about today, there's so many ways you can apply the same principle of compounding to, you know, learning new languages, growing, getting better at your job or your career, anything like that.
00:03:00 Brian Faust
So yeah, it's great.
00:03:02 Brian Faust
Great skill, great tool.
00:03:05 Anthony Carl
Yeah, So one kind of framework that a lot of people use in regards to using compounding to grow as an individual is the 1% rule you want to talk a little bit?
00:03:17 Anthony Carl
About that, right, Brian?
00:03:20 Brian Faust
Yeah. So when you think about the compounding, you know, it doesn't always have to be doubling to have tremendous effects. Even just getting 1% better at something every single day can give you tremendous gains, so.
00:03:33 Brian Faust
Tony, do you know what the number is? If you get 1% better every single day for 365 days, how much better will you
00:03:40 Brian Faust
Be at the end of the year?
00:03:43 Anthony Carl
Uhm, that depends on are we talking the 1% is compounding or are we?
00:03:49 Brian Faust
Yeah, 1% compounding.
00:03:49 Anthony Carl
00:03:51 Anthony Carl
I don't know the number.
00:03:52 Anthony Carl
What's the number, Brian?
00:03:52 Brian Faust
Number is you'd be 37 times better, not 37 percent, 37 times better at the end of the year.
00:04:01 Anthony Carl
That's a lot.
00:04:02 Anthony Carl
But I do want to make the distinction that.
00:04:05 Anthony Carl
Let's say.
00:04:05 Anthony Carl
Let's say you weren't.
00:04:06 Anthony Carl
Let's say you weren't even compounding.
00:04:09 Anthony Carl
1% better. You'd still be 365% better.
00:04:14 Anthony Carl
Which is huge.
00:04:15 Anthony Carl
That's like over three and a.
00:04:17 Anthony Carl
Half times better.
00:04:19 Anthony Carl
Even without compounding, if you could improve by 1% a day.
00:04:23 Brian Faust
Yeah, there's a great, uh, Woody Allen quote I think about all the time. It's 90% of life is just showing up.
00:04:28 Brian Faust
So being consistent, staying with, you know, if you have a goal, stick with it if you.
00:04:32 Brian Faust
Have a skill you're working on?
00:04:33 Brian Faust
Stick with it.
00:04:36 Anthony Carl
Let's maybe explore a little bit about.
00:04:39 Anthony Carl
Like, what does 1% better look like?
00:04:42 Anthony Carl
How can you become 1% better in a day?
00:04:45 Anthony Carl
Is it realistic to compound like that 1%?
00:04:49 Brian Faust
Yeah, Tony, there's a tremendous story that kind of goes with the 1%.
00:04:52 Brian Faust
Rule so back in 2005, the British Cycling team.
00:04:57 Brian Faust
They hire A new coach, new performance director.
00:05:01 Brian Faust
And they go from being the laughingstock of the cycling community.
00:05:04 Brian Faust
They don't win anything.
00:05:05 Brian Faust
They're coming.
00:05:06 Brian Faust
In last place.
00:05:07 Brian Faust
You know, nobody wants to be associated with them.
00:05:09 Brian Faust
Within five years they come back, they start winning Tour de Frances they start winning gold medals, they start winning everything.
00:05:16 Brian Faust
Nobody can beat these guys.
00:05:17 Brian Faust
And the question becomes, you know, how did they get so much better so fast?
00:05:21 Brian Faust
And when it comes down to is they didn't leave any stone unturned, they got 1% better.
00:05:25 Brian Faust
all the time.
00:05:27 Brian Faust
And that was finding different pillows to sleep on when they would train to get better night's sleep.
00:05:32 Brian Faust
Analyzing their uniforms so that there was the perfect blend that they could coast through the air faster.
00:05:37 Brian Faust
Analyzing every single part of the bike to make sure that it was optimized for each rider using different massage gels so they would recover a day.
00:05:45 Brian Faust
Faster or 1% better, and all these things put together accumulated in these tremendous growths in a very short period of time.
00:05:53 Brian Faust
So I think when you.
00:05:54 Brian Faust
Look at like, you know, if you're somebody who's in an area where you want to get better on a team, find all the little ways you can get better and start chipping away at those.
00:06:03 Anthony Carl
That's a great story, I think.
00:06:05 Anthony Carl
I think it really changes the way that.
00:06:08 Anthony Carl
We look at success because I think a lot of times there's when people see success, it always shows in these very dramatic ways, like these overnight successes, one, you know, pop song of the of the year just like came out of nowhere.
00:06:25 Anthony Carl
But in reality, I think the truth of the matter is that it's just.
00:06:29 Anthony Carl
It's the collection of all the little things that these people do and those compound into these huge results that it's things that you don't even think of, like the small things every day when you do all of those.
00:06:43 Anthony Carl
It's it adds up.
00:06:44 Anthony Carl
To that 1% or that 2% or 3% that just grows and grows and grows.
00:06:49 Brian Faust
There's a great quote.
00:06:50 Brian Faust
I forget who it's attributed to, but it's like, you know, I took it took 20 years to become an overnight success.
00:06:55 Anthony Carl
Yeah, exactly. Exactly.
00:06:58 Anthony Carl
And when I think about like.
00:07:01 Anthony Carl
Some of those little things in my own life that I often think about is just little things.
00:07:06 Anthony Carl
Like instead of working in my bed, working at, making sure I compartmentalize and like, only work at my desk so that I can shift gears faster when I'm, like going from rest or or to work, and that I can sleep better at night.
00:07:21 Brian Faust
Yeah, we talked in the podcast the second one
00:07:23 Brian Faust
We did about time management, and you had shared a lot about making sure you turn your phone off an hour before bed, leaving it outside your bedroom.
00:07:30 Brian Faust
That way it doesn't distract you and you can unwind.
00:07:34 Anthony Carl
Yeah, or or other little things like just putting in place systems that.
00:07:42 Anthony Carl
That don't seem that insignificant, but can make a big difference, like like placing your shoes in front of your bed before you go so that you wake up and run in.
00:07:50 Anthony Carl
The morning and.
00:07:51 Anthony Carl
Just all those little things tend to add up to create these huge amounts of success that you wouldn't even realize.
00:07:59 Brian Faust
Yeah, I mean, even just, you know, it's working on this podcast we started a few months ago and seems like the more we show up, you know, the better we get.
00:08:07 Brian Faust
And it feels like it's happening faster the more we've shown up.
00:08:10 Brian Faust
You know, the growth we had in the first month didn't seem as much as the month as the growth we've had over maybe the last month.
00:08:16 Brian Faust
There's just all these things showing up.
00:08:18 Brian Faust
Trying to get better, it paves the way.
00:08:21 Anthony Carl
Yeah, it really does.
00:08:22 Anthony Carl
And I think a lot of that has to do with.
00:08:25 Anthony Carl
When you when you create things and create this framework and this foundation for yourself, it's more.
00:08:31 Anthony Carl
It's easier to add on to those things.
00:08:33 Anthony Carl
So, like, once we created a system for keeping our notes and making our outlines, then we could we could add on to that in new ways that wouldn't have been possible without the initial.
00:08:45 Anthony Carl
Foundation, and I think that's part of the magic of compounding.
00:08:49 Anthony Carl
The more things that you have in your life that you just put in that extra effort, it creates new avenues for opportunity.
00:08:58 Brian Faust
Yeah, I mean now success leads to success when you are successful in things it.
00:09:03 Brian Faust
Allows you to.
00:09:04 Brian Faust
Quickly find other people who are successful, other connections, other resources.
00:09:09 Brian Faust
You know, you become a resource and you can start helping other people, and teaching is a great way to learn.
00:09:14 Brian Faust
So just all those little things come together.
00:09:16 Brian Faust
Success leads to more success.
00:09:19 Anthony Carl
And that reminds me of the idea of like.
00:09:22 Anthony Carl
Start with one habit and use that as like an anchored habit.
00:09:26 Anthony Carl
So once you have one secure habit, you can start building other habits into that same same concept of like a foundation.
00:09:35 Anthony Carl
So maybe every morning before you brush your teeth, you do one other thing that could be really helpful for you.
00:09:43 Anthony Carl
Do 5 pushups or something and then you can start building off of literally habits to create more beneficial habits.
00:09:51 Brian Faust
Yeah, when I think about habits and compounding the clear overlap is consistency.
00:09:55 Brian Faust
What are some of your thoughts on consistency?
00:09:59 Anthony Carl
I think consistency.
00:10:01 Anthony Carl
Is extremely underrated.
00:10:04 Anthony Carl
A lot of people think that working hard.
00:10:08 Anthony Carl
Is the answer to.
00:10:10 Anthony Carl
Getting things done and moving the needle.
00:10:15 Anthony Carl
I think more so than working hard, consistency is important.
00:10:20 Anthony Carl
If you just take the small steps, as we've been alluding to this entire time, if you take the small step every day and make sure that you do it every day, that will get you further than putting in like a short burst every week or so.
00:10:37 Anthony Carl
Because... the compounding effect.
00:10:39 Anthony Carl
And one way to kind of build on that and to make sure that you're consistent is to just reduce the friction.
00:10:47 Anthony Carl
As we as we've mentioned in past episodes.
00:10:50 Anthony Carl
Reducing the friction into doing things.
00:10:53 Anthony Carl
So like instead of saying promising yourself, you'll write like 20 pages.
00:10:57 Anthony Carl
Promise yourself you'll just open your laptop and open word or whatever you write on a Google doc, and then from there it's kind of like sunk cost fallacy you I opened my computer, I might as well.
00:11:09 Anthony Carl
Might as well write a little bit.
00:11:11 Anthony Carl
Applying strategies like that can help you be more consistent.
00:11:15 Anthony Carl
Which in turn can cause the compound effect, which is the principle of reaping huge rewards from a series of small smart choices.
00:11:24 Brian Faust
Yeah, if you're looking for tips on reducing friction, check out episodes one and two of the Ego Lab podcast.
00:11:30 Brian Faust
In a practical way that I think about reducing friction is playing guitar.
00:11:34 Brian Faust
I leave my guitar in a stand versus being.
00:11:35 Brian Faust
In a case.
00:11:36 Brian Faust
So that way I can just walk by and pick it right up.
00:11:39 Brian Faust
So I play it every day and I notice that when I play it every day for a month, I feel a lot better at the end of that month.
00:11:44 Brian Faust
And I do if I only play it for three days and I can play a full song or I can.
00:11:48 Brian Faust
You know, play my fingers, feel like they're hitting the right spots on the guitar versus finally pick it up for a couple days here or there.
00:11:54 Brian Faust
You know, next week, pick it up a little bit.
00:11:56 Brian Faust
It's a little tougher to get that same feeling on the guitar and get the same level of growth.
00:12:01 Anthony Carl
Yeah, I think it definitely has to do with something, something to do with like the way we learn and the way we we grow.
00:12:08 Anthony Carl
I think just doing something everyday, it really facilitates those neural pathways growing and I've noticed that some of my like strongest periods of learning and growth are when I worked whole is the same thing.
00:12:22 Anthony Carl
On like consecutive days in a row.
00:12:26 Anthony Carl
Rather than like shifting gears and switching between things.
00:12:30 Brian Faust
Yeah, it's always important to ask the question, you know, like where do you want to be putting your time and, you know, how do you set
00:12:36 Brian Faust
Up a framework to be able to do that?
00:12:39 Anthony Carl
And for the listeners out there, that begs the question, like are you, do you think you're focused enough on one or two things that you are building that cumulative knowledge or are you too spread out or you are you focusing on many things that don't really get the attention that they deserve to create that snowball effect?
00:12:59 Brian Faust
Yeah, well, you care about what you're doing a year from now, five years from now, 10.
00:13:02 Brian Faust
Years from now.
00:13:05 Anthony Carl
Yeah, just to kind of visualize that that idea, let's say you have one snowball at the top of the hill and you start pushing it down and it's rolling and it's getting bigger and then instead of keep going and and turning that snowball into an avalanche, you switch and run back to the top of the hill.
00:13:23 Anthony Carl
And start a new snowball.
00:13:25 Anthony Carl
And then you roll that snowball down the hill and then you stop, maybe even sooner, and then and then a new snowball.
00:13:30 Anthony Carl
The snowball will never make it to that point where it turns into an avalanche.
00:13:35 Anthony Carl
You're just going to have.
00:13:35 Anthony Carl
Like four or five.
00:13:37 Anthony Carl
And you know in some cases like 20 or 30.
00:13:41 Anthony Carl
Small little mediocre sized snowballs.
00:13:45 Anthony Carl
That don't really equate to any outstanding results.
00:13:50 Brian Faust
I think a little caveat to that is you gotta know when to pivot and persevere.
00:13:54 Brian Faust
So it might be better to have 4 little snowballs and one avalanche than it is to have, you know, one avalanche and something that isn't something you're really passionate about or something that's doesn't bring a lot of value.
00:14:06 Brian Faust
So there can be some value in starting a couple, but the key is to make sure that you're not spread too thin and that you're.
00:14:11 Brian Faust
Paying attention to the right avalanches.
00:14:15 Anthony Carl
Yeah, again, and that that's a really difficult thing to know.
00:14:18 Anthony Carl
Sometimes it's hard to know what to work on and we talked a lot about that in our destinations episode.
00:14:25 Anthony Carl
How do you know what you want to work on?
00:14:27 Anthony Carl
What's your destination?
00:14:28 Anthony Carl
So if you need more insight on that, check out episode one destinations.
00:14:33 Brian Faust
Yeah, perfect.
00:14:35 Brian Faust
There's a really interesting concept I've been playing around with lately and.
00:14:38 Brian Faust
And it's study the history and philosophy and not the news.
00:14:42 Brian Faust
And it doesn't mean that you can't pay attention to.
00:14:44 Brian Faust
Current events.
00:14:44 Brian Faust
But the point is, what is important.
00:14:47 Brian Faust
Today is different.
00:14:47 Brian Faust
Tomorrow is different the next.
00:14:48 Brian Faust
Day get caught.
00:14:49 Brian Faust
Up on all these little pieces and all these little stories, when you study philosophy and history and you read things like, you know, meditations by Marcus Aurelius, things that stand the test of time.
00:14:59 Brian Faust
You can kind of have a more global picture and you can kind of see things over a longer period of growth versus getting caught up on those like moment to moment or day-to-day things.
00:15:11 Anthony Carl
Yeah, I agree with you.
00:15:13 Anthony Carl
I I'm not a huge fan of the news.
00:15:15 Anthony Carl
I feel like it's distracting and I feel like it's kind of a detractor of value rather than anything else in history.
00:15:22 Anthony Carl
You can you can make better predictions of the future with history than.
00:15:27 Anthony Carl
Than anything, because you can study the patterns of just, human nature.
00:15:30 Anthony Carl
And as Brian was saying, you can kind of get a more global picture, but beyond, beyond that, knowing where to spend your time, that brings in.
00:15:41 Anthony Carl
One of the concepts and principles that we're, that we use and talk about a lot is the Preto principle.
00:15:47 Brian Faust
Yeah, the Pareto principle. If you're not familiar with that, you might have heard of it as the 80/20 principle where 80% of the results come from 20% of the inputs.
00:15:55 Brian Faust
So this goes across all domains, whether it's, you know, investing money or investing in your career, investing in relationships, paying attention to which 20% really moves the needle will get you the 80% of results.
00:16:09 Anthony Carl
And so that can be really helpful because if you're consistent in a lot of different things, you probably will make results.
00:16:16 Anthony Carl
But it also is important, if you're going to be making these large decisions about consistency, that you're going down the right pathway, which is where the 80/20 principle could be a really valuable rule.
00:16:29 Anthony Carl
Try and be consistent and devote the most time to the things that are in a top 20% of importance.
00:16:36 Anthony Carl
In your life.
00:16:37 Brian Faust
I think one of the important parts of having success over a long period of time is almost finding failures.
00:16:43 Brian Faust
When you keep showing up to things, you're going to find things that don't work.
00:16:46 Brian Faust
You're going to find areas where you can make those decisions up.
00:16:50 Brian Faust
No, I really do need to pivot here.
00:16:51 Brian Faust
But only by showing up and only by putting yourself out there, having goals, pursuing those, do you get to find the opportunities.
00:16:57 Brian Faust
Where things might not work.
00:16:59 Brian Faust
And then you can pivot to things that do.
00:17:02 Anthony Carl
Yeah, that's that's a tough challenge that you kind of brought up 'cause.
00:17:06 Anthony Carl
It's very difficult to move past this sunk cost fallacy.
00:17:09 Anthony Carl
So if somebody has been consistent with something for a long time, even something like a career, if you've been doing a career for 20 years, you're good at it.
00:17:18 Anthony Carl
You've applied that compounding principle.
00:17:21 Anthony Carl
But is that really what you want to be doing?
00:17:23 Anthony Carl
Are you happy with those results?
00:17:26 Anthony Carl
So just knowing when to pivot and finding those failures and figuring out what you don't like now so you can get on that train, start building that snowball in the right area of your life is so important.
00:17:39 Brian Faust
Yeah, makes me think of the negativity bias. You know, they do these studies and they ask people, you know, would you be willing to bet $20 to win $20?
00:17:46 Brian Faust
And overwhelmingly, people say no, and they find that the amount they have to offer people to win has to be pretty high.
00:17:52 Brian Faust
It's like 40 or $60.00 for a lot of people that they'd be willing to risk that $20.
00:17:58 Brian Faust
A place we see this often is relationships.
00:18:00 Brian Faust
You know, I've had some relationships that have gone on for years and you end up getting to the point where maybe you feel like it's not.
00:18:06 Brian Faust
Right fit.
00:18:07 Brian Faust
But you know, you do have so many good moments, and there are.
00:18:09 Brian Faust
So many good things.
00:18:10 Brian Faust
Be hard to look past that, but you think, yeah, maybe this isn't for me.
00:18:15 Brian Faust
I have to give up some of the good stuff for the potential of having maybe things that are better fit or that are more for me in the future.
00:18:21 Brian Faust
And that could be really, really difficult.
00:18:23 Brian Faust
Took in some cases a very long time to come to grips with that.
00:18:28 Brian Faust
But yeah.
00:18:28 Brian Faust
That's part of life.
00:18:30 Anthony Carl
Yeah, obviously I don't know anything about marriage at my age.
00:18:33 Anthony Carl
But it makes you wonder, like, how many people are in unhappy marriages or unhappy relationships just because of like the sunk cost fallacy.
00:18:42 Anthony Carl
And how much happier could they be if they just switch gears, started pushing a new snowball down that hill?
00:18:48 Brian Faust
Yeah, I mean, I don't think there's the right answer.
00:18:50 Brian Faust
Right?
00:18:50 Brian Faust
Like, neither of us are going to sit here and say, you know, what people should do.
00:18:53 Brian Faust
Yeah, there's a great quote.
00:18:55 Brian Faust
The grass is always green where you water it, you know, you have to kind of toe the line.
00:18:59 Brian Faust
You know, when you think about anything, right, like where you put your energy, you know you're going to see potentially results, But yeah.
00:19:06 Anthony Carl
Maybe like watering, you know, relationship that you feel like you can't get out of, or maybe that you're not happy.
00:19:13 Anthony Carl
And maybe what you need is just some consistency in something that you think is broken, and that could go a long way with compounding.
00:19:20 Anthony Carl
The principle could be applied anywhere really.
00:19:23 Anthony Carl
Maybe unhappy marriages just need to, or really anything.
00:19:28 Anthony Carl
I don't want to like put any particular emphasis on unhappy marriages.
00:19:32 Anthony Carl
It's just an arbitrary example, but maybe unhappy marriages need like watering in in their relationships.
00:19:40 Anthony Carl
That could actually solve it that way rather than switching gears again.
00:19:44 Anthony Carl
Just choosing the right things and.
00:19:46 Anthony Carl
Knowing when to quit and then knowing when to, just stay consistent.
00:19:50 Brian Faust
Yeah, one of the greatest predictors actually, in happy relationships, from what I've read in my experience, is just doing little things that show you care.
00:19:58 Brian Faust
Go a long way to building trust and building love and you know those little things go a long way.
00:20:04 Brian Faust
In any relationship, whether it's, you know, romantic or friendships or things at work, right, like showing up and showing you care goes a long.
00:20:11 Brian Faust
Way to building trust.
00:20:13 Anthony Carl
Yeah, I can speak to that on a personal account sometimes.
00:20:16 Anthony Carl
It like in some of my friendships.
00:20:18 Anthony Carl
I've had some rocky times and I found that.
00:20:21 Anthony Carl
Just the tiniest things of like going up and showing appreciation to your friend and kind of doing making little efforts to keep them in the loop and reach out.
00:20:30 Anthony Carl
Those things make a huge difference.
00:20:33 Brian Faust
Where you water, the grass grows.
00:20:35 Anthony Carl
Yeah, I hope we're kind of painting the picture here that this principle really can be applied to anything. You know, we had the bikers, they did that little 1%, they just changing the pillows and changing the the gears on the bike.
00:20:47 Anthony Carl
And it applies to relationships, it applies to money, it applies to everything.
00:20:52 Anthony Carl
Just if you if you put in that consistency over time, it's more about doing it over time.
00:21:00 Anthony Carl
It turns into this huge avalanche of success and results.
00:21:06 Anthony Carl
Good or bad.
00:21:07 Anthony Carl
Good or bad.
00:21:09 Brian Faust
Yeah, I mean, you've mentioned money there and you know, one of the most famous investors is Warren Buffett.
00:21:14 Brian Faust
You know, he's a really an investor, but the simple principle that he always looks back on when people ask him what made him so successful, you know, he always says it's not timing the market and knowing when to get in.
00:21:26 Brian Faust
It's getting into being there for a long time.
00:21:28 Brian Faust
So it's.
00:21:28 Brian Faust
Time in the market versus timing the market.
00:21:32 Anthony Carl
Yeah, and and Warren Buffett to even really blow up this compounding thing. Warren Buffett made like $80 billion in like, the past 10 years of his life.
00:21:42 Anthony Carl
Like something crazy like that, that that's a guess, but it's something around that figure where like the majority of his wealth was made in.
00:21:50 Anthony Carl
The latter periods of his investing journey just like totally exploded with results.
00:21:56 Anthony Carl
So if you think about it, the longer you stay in the game.
00:22:00 Anthony Carl
And the longer you show up, 90% of life is showing up, Woody Allen.
00:22:05 Anthony Carl
The longer you're there.
00:22:07 Anthony Carl
The more, the more time to create those huge, astounding results.
00:22:11 Brian Faust
Yeah, I mean, you hear people talk about retiring who get close in there, like maybe they don't have what they were hoping to.
00:22:17 Brian Faust
Have you know, and it's like, oh, when did you start investing and you know your 401, 401K, 4O3B?
00:22:22 Brian Faust
Oh, just ten years ago, you know.
00:22:25 Brian Faust
Somebody who starts young, you know it doesn't take much when you start young.
00:22:29 Brian Faust
Just building over time.
00:22:30 Brian Faust
Super important.
00:22:32 Anthony Carl
Yeah, and you know my.
00:22:33 Anthony Carl
My like startup Lens is coming in here.
00:22:36 Anthony Carl
Here you know time in the game doesn't necessarily need to be just like this linear.
00:22:42 Anthony Carl
Oh, am I doing it every day?
00:22:44 Anthony Carl
Am I doing it once a week that I think the interval that you do things in, the amount of time that you do things also contributes, like the total amount of time in the game?
00:22:53 Anthony Carl
So maybe you can change the frequency of the amount of times that you do things.
00:22:57 Anthony Carl
So let's say let's say you do something.
00:22:59 Anthony Carl
Three times a day, then you're allocating a total of a lot more time and allowing that compounding interval to be.
00:23:08 Anthony Carl
Much more condensed and much more at a much faster rate.
00:23:11 Brian Faust
Yeah, if you.
00:23:12 Brian Faust
Get paid, you know, a dividend on something weekly versus once a quarter or once a year, you're going to see a lot more results.
00:23:20 Brian Faust
Even if it's the same number over the course of the year, getting it faster actually compounds it quicker.
00:23:26 Anthony Carl
Exactly. So that's so when we say time involved that includes all the time that you put into something and to kind of demonstrate this again one more time, the idea of concept of compounding if a 25 year old started investing $200.00 per month.
00:23:43 Anthony Carl
Assuming 6% return by the time they turn 65.
00:23:47 Anthony Carl
They'd have a nest egg worth $393,000.
00:23:51 Anthony Carl
But if they'd.
00:23:52 Anthony Carl
Waited until 35 to start investing $200.00 a month. Even with the same rate of return, they'd end up with about half of that, with $200,000 by the age.
00:24:01 Anthony Carl
Of 65.
00:24:02 Brian Faust
Yeah, so double.
00:24:04 Anthony Carl
Double just by just by starting earlier so that they had an additional 10 years time in the game and they had doubled the results with less total input.
00:24:15 Brian Faust
You can run the numbers a bunch of different ways.
00:24:16 Brian Faust
You can start earlier and stop and still have more than someone who invests a lot more later in life.
00:24:22 Brian Faust
For the listeners out there, what's the one area that you're going to care about 10 years from now, 20 years from now, that you really want to spend your time compounding on?
00:24:31 Anthony Carl
Yeah, how can you make that?
00:24:34 Anthony Carl
Easy for yourself.
00:24:35 Anthony Carl
Get involved.
00:24:36 Anthony Carl
Just make sure you're doing it every day.
00:24:38 Anthony Carl
Yeah, we would love to hear it.
00:24:39 Anthony Carl
Reach out to us.
00:24:40 Anthony Carl
We promise we will get back to you if you reach out, and we're looking forward to hearing from you.
00:24:45 Anthony Carl
Thank you everybody for tuning in today.
00:24:47 Anthony Carl
If you made it this far.
00:24:48 Anthony Carl
We love you.
00:24:49 Anthony Carl
Can't wait to see you in.
00:24:50 Anthony Carl
The next episode.
00:24:51 Anthony Carl
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00:25:00 Anthony Carl
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00:25:03 Anthony Carl
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00:25:05 Anthony Carl
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00:25:06 Anthony Carl
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00:25:14 Anthony Carl
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