Small improvement or deterioration makes Big Difference

Small improvement or deterioration makes Big Difference

Though it includes some text, it simply denotes what 1% of improvement or deterioration can do to us within a span of 365 days.

We in the age range of 18 to 40 call yourself young. And what most of the young people do with their 24 hours in a day, that decides their future.

A normal young guy’s routing is like waking up around 8AM, have tea, office then back to home, watch TV or movie, mobile, Facebook, WhatsApp, chitchat and sleep around 1PM.
What we are missing here: Reading, Learning, Health, Saving, Investing, Knowledge, Family etc. We are losing the most precious element: Time

Why I am talking here this all, I am trying to bring the attention to the small Changes or habits, if we change, we can achieve a lot.

As the picture shows a small fraction change 1% makes the 1.01 to 37.8 in 365 days with compounding. And the same time (365 days) with 0.99 makes it to 0.03.

This is a big difference with only small number 1%.

Now let apply the same formula to our daily habits, Routines:

1: For the people who don’t read, let see just start reading only 5 page per day. Check the calculation below:

Day
Page
Time
Total Pages
1 Day
5
10min
5 pages
7 Days
5
10 min
35 pages
30 Days
5
10 min
150 pages
365 Days
5
10 min
1825 pages

So 1825 page = 6-7 book on an average 300 pages each book
Time spent: 3650/60=60.83 hr=2.53 day
So, with a 10 min reading daily will bring us the knowledge of 6-7 books, that will be a research of 5-10 years.


Sir Isaac Newton said:

If I have seen further it is by standing on the shoulders of Giants.

By voracious reading we can learn lot of things from the great minds of the world.

2: On Saving and Investing:
On Saving, let’s start with the same rule:
5000 RS per month with 5% interest rate from Bank:
Year
Year Deposits
Year Interest
Total Deposits
Total Interest
Balance
1
60,000.00
1,650.09
60,000.00
1,650.09
61,650.09
2
60,000.00
4,804.22
120,000.00
6,454.31
126,454.31
3
60,000.00
8,119.73
180,000.00
14,574.04
194,574.04
4
60,000.00
11,604.86
240,000.00
26,178.90
266,178.90
5
60,000.00
15,268.30
300,000.00
41,447.21
341,447.21
6
60,000.00
19,119.17
360,000.00
60,566.38
420,566.38
7
60,000.00
23,167.06
420,000.00
83,733.44
503,733.44
8
60,000.00
27,422.05
480,000.00
111,155.49
591,155.49
9
60,000.00
31,894.72
540,000.00
143,050.21
683,050.21
10
60,000.00
36,596.23
600,000.00
179,646.44
779,646.44

5000 RS per month with 8% interest rate from FD:
Year
Year Deposits
Year Interest
Total Deposits
Total Interest
Balance
1
60,000.00
2,664.63
60,000.00
2,664.63
62,664.63
2
60,000.00
7,865.76
120,000.00
10,530.39
130,530.39
3
60,000.00
13,498.59
180,000.00
24,028.97
204,028.97
4
60,000.00
19,598.93
240,000.00
43,627.91
283,627.91
5
60,000.00
26,205.60
300,000.00
69,833.51
369,833.51
6
60,000.00
33,360.63
360,000.00
103,194.14
463,194.14
7
60,000.00
41,109.51
420,000.00
144,303.65
564,303.65
8
60,000.00
49,501.55
480,000.00
193,805.20
673,805.20
9
60,000.00
58,590.13
540,000.00
252,395.33
792,395.33
10
60,000.00
68,433.05
600,000.00
320,828.38
920,828.38

In Shares Market, assume you have invested in very good MF or shares like Mr. Warren Buffet. Assume with 20% interest rate:
Year
Year Deposits
Year Interest
Total Deposits
Total Interest
Balance
1
60,000.00
6,914.28
60,000.00
6,914.28
66,914.28
2
60,000.00
21,594.68
120,000.00
28,508.96
148,508.96
3
60,000.00
39,495.82
180,000.00
68,004.78
248,004.78
4
60,000.00
61,324.32
240,000.00
129,329.10
369,329.10
5
60,000.00
87,941.79
300,000.00
217,270.89
517,270.89
6
60,000.00
120,398.90
360,000.00
337,669.80
697,669.80
7
60,000.00
159,976.81
420,000.00
497,646.61
917,646.61
8
60,000.00
208,237.77
480,000.00
705,884.38
1,185,884.38
9
60,000.00
267,086.74
540,000.00
972,971.12
1,512,971.12
10
60,000.00
338,846.66
600,000.00
1,311,817.77
1,911,817.77

So, small saving with proper investment makes huge difference with time.
You can compound the same rule of small on Habits, Health, On Negative aspects like Bad Habits Smoking/Drinking

Thanks,

Mahesh

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