Why Compounding is hard to understand for the human brain🧠
a thread🧵
a thread🧵
Linear thinking in a Non-Linear World
Our brain works and thinks in linear pattern whereas everything that happens around us and inside us happens exponentially.
It is not very intuitive for us to think in exponential forms than it is to think in linear forms.
Our brain works and thinks in linear pattern whereas everything that happens around us and inside us happens exponentially.
It is not very intuitive for us to think in exponential forms than it is to think in linear forms.
Try it out for yourself.
We interpret linear equations much better than non linear ones.
Some people call it the LINEAR BIAS
We interpret linear equations much better than non linear ones.
Some people call it the LINEAR BIAS
How to fix this way of thinking?
Its not that simple that you wake up one day & start interpreting non-linear equations as good as linear ones. Its a long road of practice which does not guarantee you that you will get rid of every problem of non-linear thinking but most of them
Its not that simple that you wake up one day & start interpreting non-linear equations as good as linear ones. Its a long road of practice which does not guarantee you that you will get rid of every problem of non-linear thinking but most of them
1. Do the math
Our brain tries to pick the right answer first which is almost always false. Its always best to take some more time and do the math and determine where the winner.
Our brain tries to pick the right answer first which is almost always false. Its always best to take some more time and do the math and determine where the winner.
2. Be aware of linear bias
Sometimes you might not be able to get a tangible answer but to be aware of the linear bias will help a lot in evaluating the right one.
Sometimes you might not be able to get a tangible answer but to be aware of the linear bias will help a lot in evaluating the right one.
3. Visualize it
Drawing out & visualizing the problem will help in a massive way in understanding the problem as for any other subject.
Drawing out & visualizing the problem will help in a massive way in understanding the problem as for any other subject.
Compouding is a form of Non Linear thinking and this is why it is hard for us to understand compounding.
New thread every day for 30 days.
Tune in tomorrow.
New thread every day for 30 days.
Tune in tomorrow.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
