The IT Engineer Who Discovered the Magic of Compounding
Compounding is nature's version of recursive functions - the real magic happens in the last iterations.
6/7/20251 min read
Meet Rahul Sharma, 28, Bengaluru-based Software Developer
The Discovery (2024)
While debugging code late night, Rahul stumbled upon an investing truth:
His ₹10L Investment at 15% CAGR:
Years 0-5: ₹10L → ₹20L (Double)
Years 6-10: ₹20L → ₹40L (Double again)
Years 11-15: ₹40L → ₹80L
Years 16-20: ₹80L → ₹1.6Cr
The Aha Moment:
First 15 years: ₹70L gain
Last 5 years: ₹80L gain (More than entire first 15 years!)
Why This Shocked Him
1️⃣ Tech Salary Parallel:
Like his ₹15L salary becoming ₹30L in 5 years
But then ₹30L → ₹60L in next 5 feels impossible
2️⃣ The Patient Programmer's Edge:
"Compiling code takes minutes. Compounding wealth takes years - but both follow exponential curves."
3️⃣ His Old Mistake:
Used to chase ₹50k bonuses instead of focusing on 15% SIPs
Action Plan:
Increased SIP from ₹20k → ₹30k/month
Stopped checking portfolio weekly
Bookmarked: "The last 5 years do the heavy lifting"
The Lesson for Techies
"Compounding is nature's version of recursive functions - the real magic happens in the last iterations."
3 Debugging Tips for Wealth:
Don't interrupt the loop (Stay invested)
Increase memory allocation (Boost SIPs with hikes)
Ignore compile-time warnings (Market noise)
Try This:
Your Current Investment × 2^(Years/5) = Future Value