How Blogging Looks Like Compound Interest

I remember when I was a little girl in elementary school, and my brother and I used to accompany my mother to the bank. I was probably 7 or 8 years old.

My mom gave my brother and I bank accounts (with a small amount of money) to teach us a bit about money (and to keep us busy)

Back then, interest rates were high and we had passbooks (remember that?). Thus, we would update the bank books every time. We could see how our balance was growing.

And that’s when I discovered the concept of compound interest. It’s like passive income. It grows for you as you live your life.

I loved the idea that my income could continue to grow on its own. I liked to calculate what things would look like in the future and that the secret was really a matter of economy, patience and time.

Later, when I grew up, I knew that the more I could earn, the more I could save. And the more I could save, the more I could invest.

And, as long as I didn’t need money fast, I would be fine in the long run.

Fast forward to where I am today. I now earn my living by managing my blog. Yes, it’s true. I make money with my blog, and that’s how I support myself.

At first when I started my blog and tried to monetize it, it was slow as treacle. Super duper slow – almost like watching paint dry. And, I really needed the money too, so that was really frustrating.

I wrote blog post after blog post. I have them SEO and I learned how to do pinterest. I learned a lot. And I blogged a lot. I felt like I had made very little progress. Yes, I made money – maybe $1,500 to $2,000/month – not enough to live on and not enough to justify the time I put into it. It was frustrating.

But, finally around month 11-12, things started to develop. From there things started to take off and I increased my monthly income by about $1000/month. That’s when I realized it looked like compound interest.

All the work I had done before was reflected in the results and it just kept growing.

And, as I blogged, I built the base and allowed it to get worse.

Well until there is a pullback in the market. (i.e. an update from Google). But of course the market recovered a few months later and I continued to grow.

Then I ventured into uncharted waters and created my first ebook. It was a good inflection point, so I did a second one 2 months later. That’s when things really started to skyrocket.

Over the past few months, I’ve continued to do additional small projects to fill in any gaps (eg email, landing pages). And, as I check them off my to-do list, these tweaks propel me further.

It’s gradual of course, but it feels good because I’m improving and moving in the right direction. It sounds like compound interest.

As I progress, the base grows. It is composed and built on itself.

I keep learning and getting out of my comfort zone. Suddenly, little by little, this puppy grows. And, there is a synergy between the parts. I’m progressing and it feels good! Just like compound interest.

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