Compounding – Banker’s Lesson for Relationships

Compounding is not just for bankers
Compounding formula

Compounding is not just for bankers. Sure, bankers talk the most about it, because it has to do with saving money, and the interest that’s added to the account that increases your balance over time. Although usually a positive, it can also have a negative effect. If a bank charges you interest to loan you money, that adds up over time too. It is a multiplier of the positive or negative over time. Here’s why compounding is a relationship lesson you can learn from a banker.

Compounding works in your interpersonal and working relationships, too. Let’s assume you start a relationship that is neither particularly good nor bad. If you constantly add value to it, that relationship will “appreciate.” If you constantly depreciate the relationship or the other person, your dealings with them will get worse.

Relationships are dynamic and changing. Sometimes they start by appreciating and end up depreciating. Look at people as they fall in love and get married (appreciating) and then start bickering and end up divorced (depreciating.) Those little interactions compound. So, strive to compound your relationships by adding a little “interest” and positive energy:

  • Find new and different ways to show appreciation for those you care for.
  • Each day, say something nice or encouraging to your team mates.
  • Make a small gesture to support your positive thoughts. Do it again tomorrow.
  • Show interest in the accomplishments of the people around you.

Make a habit of doing something positive within your important relationships, and watch them gain interest, appreciate, and compound.

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