Can compound interest save the evironment?

A stock graph bursting out from green paperThe site was down for a while this evening, so Maggie didn’t have a chance to post anything before she went to bed. In lieu of a real post, I’ll leave you with something I’ve been thinking about today. A lot of people feel like it isn’t worth changing their lifestyle because they’re just an individual, so they can’t make a real difference. Think about where we’d be if an individual could make an immediate and obvious difference, though. That world would be in terrible trouble if it was at a point where one person’s additional greenhouse gases or electrical use would be enough to plunge the world into chaos.

Wouldn’t you rather be where we are now, where you don’t have to make a huge difference to do some good?

It reminds me of compound interest. When you hear about Adam who invests $12k and lets it sit for 30 years versus Bob who invests $100 a month for 30 years, the obvious winner seems to be Bob. After all, Bob put three times as much money in as Adam, so he made a much bigger difference, right? Sure, if you’re talking effort. But if you’re talking results, Adam is the real mover and shaker here. His initial $12k is worth over $300k, while Bob’s take is half that even though he put in more money!

If you wait until change is forced on you, you’ll have no choice but to make a huge difference (or die off). But, if you start making little changes now, you’ll make it so that you won’t have to be a super-sacrificing Bob.

Call it the compound interest theory of sustainability.

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