• Jordi Taylor

What Does Compound Interest Have To Do With Athletic Development (For Both Athletes & Coaches)

Compound interest is when the interest you earn on a balance in a savings or investing account is reinvested, earning you more interest.


Compound interest accelerates the growth of your savings and investments over time. Conversely, it also expands the debt balances you owe over time.


Let’s say you have $1,000 in a savings account that earns 5% in annual interest. In year one, you’d earn $50, giving you a new balance of $1,050. In year two, you would earn 5% on the larger balance of $1,050, which is $52.50—giving you a new balance of $1,102.50 at the end of year two.


Thanks to the magic of compound interest, the growth of your savings account balance would accelerate over time as you earn interest on increasingly larger balances. If you left $1,000 in this hypothetical savings account for 30 years, kept earning a 5% annual interest rate the whole time, and never added another penny to the account, you’d end up with a balance of $4,321.94. (Source Forbes Adviser)


But what does this have to do with Athletic Development? Small actions can make a big difference to our careers- personally and professionally.


"Most people overestimate what they can do in the short term and underestimate what they can do in the long term."

Making small changes daily is so easily overlooked- massive success doesn't require massive action. Improving 1 percent better each day in 2021 you will be 37 times better by 2020. Declining 1 percent each day declines to nearly 0.



Creating small daily wins can ultimately set you up for success later down the road. The small wins may not be noticeable at the start, but actioning daily add up.


What does this look like for an athlete?

Marginal improvements in the technical aspects of sport.

Marginal improvements in strength training.

Marginal improvements in nutrition.

Marginal improvements in recovery. (Hint: fix sleep above extra modalities)


What does this look like for a coach?

Marginal improvements in technical up skilling. (Anatomy, Physiology, Biomechanics etc)

Marginal improvements in business systems. (Sales, Marketing etc)

Marginal improvements in your own training.


Times all of those marginal gains over 1 year. That's a pretty decent improvement. Improve over 3 years, that's a massive change.


"Winners and losers have the same goals". James Clear

Talk to most people in the New Year and they tell you the have goals. Goals to win a championship, lose body fat, increase their income. Most will fail.


Winners have systems to achieve these goals. We touched on Compound Interest in this blog article. Next week we will discuss some of the systems that can be put in place, practised and executed to be better athletes and coaches this year.