---
layout: post
title: Compounding
date: 2026-01-14
last_modified: 2026-01-19
math: true
---
$1.01^{365}$ vs $0.99^{365}$ is a very anti-intuitive concept. The frequent
saying that "it takes 60 days to form a habit" is very
similar. In 60 days, steadily becoming 1% better gets you
to 80% more (not even double what you started with).
Getting 1% worse means dropping to 54% of the initial
value.
Implicit in the formula is the fact that there is one magnitude that is being
optimized. No other dimensions matter. This is focus.
$1.01^{365}$ vs $0.99^{365}$ is a very anti-intuitive concept. The frequent
saying that "it takes 60 days to form a habit" is very
similar. In 60 days, steadily becoming 1% better gets you
to 80% more (not even double what you started with).
Getting 1% worse means dropping to 54% of the initial
value.
Implicit in the formula is the fact that there is one magnitude that is being
optimized. No other dimensions matter. This is focus.