By: Neerja Caprihan
The field of investing is based fundamentally on the premise of compounding. When we invest, here’s what we are essentially doing. We begin to put aside whatever amounts of resources we have at our disposal, add periodically to the corpus, and then look forward to that corpus growing over time to yield a rewarding stack at a later point in time. And so you invest financially or in careers, enterprises, people, relationships and such. The reaping of the benefits when in need later, comes through the power of that quiet but steady compounding.
The Japanese philosophy of Kaizen1 meaning ‘change for the better’ or ‘continuous improvement’ also underscores the power of small changes made consistently over time. It simply means that small actions repeated consistently often lead to big results as time goes by. We have heard this all through our formative years. The theory applies to personal life as much as it does to the corporate circles where it has made its presence felt as well.
This belief is a far cry from the “go big or go home” mindset. It challenges the notion of relying on sudden and drastic overhauls, and reinforces the time-tested wisdom of using small but consistent incremental changes to generate substantial long-term yields. A continuous PDCA2 (Plan-Do-Check-Act) methodology lies at the heart of Kaizen.
It is the way you should begin your investing journey with us if you still haven’t. Start small (most of our portfolios have a $100 minimum, and fees are low) but do it, and do it repeatedly.
It is the way you can login to your dashboard and review your portfolio. Explore a new offering, try a new feature, or go ahead and invest in a different portfolio.
It is the way we work at Interactive Advisors. A recent small change we hope will help our clients’ journey with us even smarter is the launch of our very own app. As a continuous improvement on our part, we hope we are making the journey from ‘Plan’ to ‘Act’ easy and hassle-free for you.
PHOTO CREDIT; https://www.shutterstock.com/g/GoodIdeas
VIA SHUTTERSTOCK
FOOTNOTES AND SOURCES:
1.https://en.wikipedia.org/wiki/Kaizen#History
2. https://www.investopedia.com/terms/p/pdca-cycle.asp
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