I want to share something interesting with you.
Here’s a question that you may have heard before: If you had to pick between receiving $1,000,000 today or the value of $0.01 doubled every day for 30 days, which would you pick?
I’ve heard this question before, but recently a mentor of mine who worked in finance challenged me to prove the benefits of compounding interest to myself.
Doing it took a few minutes, but it provided some valuable insights.
Here are the calculations (my insights below):
As of Day 10, the doubling penny is worth only $5.12.
As of Day 20, the penny is worth approximately $5,000. At this point choosing that doubling penny still seems like a poor choice.
On Day 27, which is 3 days before the 30 days ends, the penny is worth approximately $670,000. Now, that’s a lot of money for that penny to have turned into but still a lot less than $1,000,000.
But on Day 28 is the first time the doubling penny’s value exceeds $1,000,000. At that point, the penny is worth approximately $1,300,000. Until 2 days before the deadline, that penny seemed like a bad investment.
As of Day 30, that doubling penny is worth an incredible $5,368,709.12.
Approximately $4,700,000 of that growth occurred between days 28 through 30.
So, what’s my point?
My point is all of us strive every day towards pursuits that we have and we love (our horses and our riding), and sometimes it feels like we’re not making progress, especially during the tough times when progress is slow and success is elusive.
The reality is that the doubled efforts will eventually add up to huge gains. Sometimes, it just takes those few extra days for those gains to exponentially increase! So, rise to the challenge and persevere through the times when it seems like you’re not gaining with your horse and you’ll be rewarded when you least expect! Remember slow and steady wins the race and as Greg Ward used to say, “If you improve your horse 1% a day, in 100 days, your horse will be 100% better!” Now that’s doable and well worth striving for!
I hope that you find some inspiration in that like I did. Be well. Be safe.
Enjoy the rest of your week.
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I’m going to ride with a shinny penny in my pocket from now on!
I love this as it pertains to horse training!!! Thank you for sharing.
Thank you! I needed to hear this. With appreciation, Mattie
Powerful lesson Sandy thank you!