Power of the Tiny
By: David Masters
“When spiders’ webs unite they can tie up a lion”
~ Ethiopian proverb
The World’s First Criminal Hacker
In 1967 a New York banker hacks into his employer’s computer system. He installs a computer programme that shaves tiny amounts of money off customer interest payments and pays them into his own account. Each amount stolen is a fraction of a penny.
In a few years, the banker has amassed over $200,000.
The Most Powerful Force in the Universe (According to Albert Einstein)
Put money in a bank account and after 12 months you’ll be paid interest on that money. Wait another year, and you’ll be paid interest again. This second year’s interest is paid on the money you originally deposited, as well as on the interest you earned in year one. The interest that’s paid on interest is compound interest. It’s tiny to begin with, but over time it builds momentum and keeps your investment growing at a faster and faster rate.
“The most powerful force in the universe is compound interest.”
~ Albert Einstein
Here’s the power of compound interest. If you invest $100 per month between the ages of 20 and 29, then leave the investment to grow until you reach age 60, you’ll end up with more money than someone who invests $100 per month between the ages of 30 and 59.
Saving $1 Billion in Penny Coins
In 2004, Bank of America hires a research firm to work out how they can get more people to open bank accounts, and more money deposited in these accounts. Professional sociologists and psychologists are sent out to observe the every day behaviour of Bank of America’s target customers.
The researchers see that when most people go shopping, they get home and put any coins left over from the shopping in a jar. Over time, people collect this money and put it in a bank account, use it as kid’s pocket money, or give it to charity.
Noticing this almost universal behaviour, Bank of America launches a new account called ‘Keep the Change’. Every time a Keep the Change account holder goes shopping with their BoA debit card, the purchase is rounded up to the nearest dollar and put into the shopper’s savings account. BoA adds 100% to the total for the first three months, and 5% to the total thereafter.
The account proved hugely popular with 99% customer retention.
Since the 2004 launch, ‘Keep the Change’ customers have put aside their spare pennies to save more than $1 billion.
An Encyclopedia Written by Millions
2001. Wikipedia launches with fewer than 100 articles. Over the next 12 months, 50,000 people visit the site – fewer than 150 per day. However, visitors are intrigued by the idea that they can create and edit articles on the site. A high proportion of visitors contribute, either by submitting a new entry or updating current articles.
By early 2002, the article count reaches 20,000. In 2003, this has grown to 100,000 articles.
July 2006. Wikipedia is now growing so fast that it is physically impossible for a single person to read through all the updates and new articles, even if they did so at 600 words per minute, 24 hours per day, every day.
Today Wikipedia hosts over 5 million articles in more than 100 languages. Tens of millions of people visit every day, making over 500,000 daily edits.
Kaizen
Kaizen is Japanese for “continuous improvement”. It’s not just a word, but a philosophy of getting big things done in tiny steps.
In our instant gratification culture, we expect everything right now. We do not expect to have to work at things. We look at a masterpiece of art, or an innovative new business, and we are stunned, as if it had happened overnight.
“Little things add up to a big thing if you have enough little things. Given enough time, the steady drip-drop of water becomes an ocean. Given enough time, small regular deposits become a small fortune.”
~ Ian Newby-Clark
Action Summary
“Do not fear going slowly; only fear standing still.”
~ Chinese proverb
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Great motivation, thanks.
Thanks Mokokoma, glad you found this helpful.
excellent! This actually reminds me how I’ve wanted to come up with a project that will take me no less than 10 yrs to complete. This has gotten my wheels turning a bit. Thanks!
James,
All the best in coming up with your project – and with seeing it through to completion. I find that starting something and then finishing it to my expectations is one of the most difficult things in life.
Hi
It is really a very nice motivation and nice informations that you have Provided in your site. There is things that we never considered as successful but they are the fact which is ruling the world. nice job.
Thank you. Yes, the things we are unaware of are often more significant than the things are aware of.
I love that ‘keep the change’ concept. Made me imagine what could happen if every online sale were rounded up and the change given to charities or social enterprises like Kiva. That could be so powerful!
Also… is there any subject that Einstein didn’t say something brilliant about?
Tzaddi,
That’s a great idea for fundraising. Please send NonToxin your favourite Einstein quotes via the contact page – we’d love to have them.
an inspiring message delivered softly but clear.]
Excellent work.
Thanks for sharing.
Thank you Doctor. There are times when a whisper is louder than shouting.
Thank you for sharing these insights – momentum, built over time can move mountains.
Very well said.