Mert Bürİan

The power and magic of compounding lie in its transformative ability to multiply value over time, much like a snowball growing exponentially as it rolls downhill. In financial terms, compounding refers to the process where the value of an investment increases because the earnings on an investment, both capital gains and interest, themselves earn interest. This is often referred to as “interest on interest” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. Beyond finance, this principle holds true in various aspects of life—knowledge, relationships, habits, and even career growth. When you learn something new, that knowledge compounds over time as you build more information and skills on top of it. Similarly, consistent, incremental efforts in building relationships or developing habits can over time yield significantly magnified results. In the context of a career, small continual improvements can compound into remarkable success over time. Compounding, in essence, embodies the potent power of time—when given enough of it, small, consistent, positive changes can result in monumental outcomes.