I first encountered the 1.01^ principle in James Clear's book Atomic Habits. It mathematically illustrates the power of compounding. Little progress may seem unnoticeable at first until they become unmistakable. 

Here's an illustration:

1.01 ^ 1 = 1.01 1.01 ^ 50 = 1.64 1.01 ^ 100 = 2.70 1.01 ^ 150 = 4.44 1.01 ^ 200 = 7.30 1.01 ^ 250 = 12.03 1.01 ^ 300 = 19.79 1.01 ^ 365 = 37.78

That tiny little .01 unit of daily progress over a year makes a huge difference!

But for us to appreciate it more, let me put it this way:

Imagine you desire to tone your muscles and improve your health. You go to the gym, do a few stretches, and sweat yourself. You went home after, but nothing seemed to change in your physique. You just ended up tired.

The following day, you did the same routine. Again, you went home tired.

The third day, the same. On and on until the routine no longer exacts a toll on your body. You eventually notice your biceps and muscles bulge a little and no longer gasp for air quickly. You are getting better.

You look into the mirror and see yourself as different from the first time you went to the gym. 

And this is because you committed to that slow process of success. Your little efforts at first compounded in the long run.

Now translate this illustration into other areas, such as savings, developing habits, improving yourself, or training yourself in whatever discipline you want to pursue. It takes commitment to succeed. 

Slight growth is better than nothing.

Imagine yourself not doing anything. Let's look again at this illustration:

1.00 ^ 1 = 1.00 1.00 ^ 50 = 1.00 1.00 ^ 100 = 1.00 1.00 ^ 150 = 1.00 1.00 ^ 200 = 1.00 1.00 ^ 250 = 1.00 1.00 ^ 300 = 1.00 1.00 ^ 365 = 1.00

It doesn't matter how long it takes; nothing will change if you do not put effort into it. Inaction is costly. It is a waste of precious time and opportunity. We cannot expect things to turn in our favor. Natural law says what you sow is what you reap. If you don't sow, how will you be able to reap? 

We must invest - effort, discipline, commitment - anything we want to grow. Success doesn't come easy. It takes time, endures a slow process, and takes a long and winding road.

A slow process

I wanted to be a disciplined writer. I try to write regularly and commit to my minimum word count. It is not easy. Sometimes, I feel like I'm dragging myself in front of my laptop with my eyes heavy and body tired from work. Sometimes, I force creative ideas to flow from my mind and imagination to my fingertips so I can begin to type in words. Sometimes, I feel bored and unsure of myself. But my commitment has helped me take small steps from where I was before. I can no longer remember when was the first time I published my first blog. I can no longer remember the first time I saw my name on a byline of an article. But I know I have improved somehow. I'm not yet "there," but I'm "going there." 

I love the power of compounding working in my little hobby of writing. Albert Einstein once said, "Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn't pay it". While some people question whether the quote was, in fact, from Einstein, the power of compounding is unquestionable.

My illustration came from this article.