Compounding Interest!

"Relationships are another thing that compound, becoming stronger over time if we keep investing in win-win dynamics. Imagine a network of nodes that connect to each other at random. The likelihood of any given node receiving an additional connection is proportional to the number of connections it already has. Through randomness, a small number of nodes will end up receiving most of the connections—a phenomenon called preferential attachment.

Preferential attachment is a type of compounding that occurs when a certain thing (such as money or friends) is more likely to accrue to individuals or entities that already have more of it. For instance, people who have many friends tend to keep making more and more. They have more opportunities to meet new people through the ones they already know."

Beaubien, Rhiannon ; Leizrowice, Rosie. The Great Mental Models Volume 3: Systems and Mathematics (p. 211). Latticework Publishing Inc..

The more educated reader may already know about compounding interest. It is a major reason for interest in investing. Your net worth increases exponentially.

The above quote explores the benefits of relationships. It highlights that enjoying the efforts of building relationships are also not initially easy or otherwise linear - the benefits that accrue are exponential the more and more time and effort you invest in the same.

Furthermore, can you imagine how beneficial networking, building relationships and guanxi can be in a jurisdiction like China?

Relationships and Mathematics!

Read about this mathematical phenomenon in the book, The Great Mental Models, Volume 3. The book explores simplified concepts in mathematics, including compounding, and highlights how these concepts can be applied in everyday life.

In the alternative, to discuss about the wonders of compounding, for example, in life and relationships even, leave a comment, question or like in the comments section below.