Analysing your IQ
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Small improvements repeated over time produce non-linear gains.
Compounding is a cognitive framework that changes how you see problems. Once you understand it, you'll notice opportunities to apply it everywhere.
Prioritize habits and systems that you can sustain daily; track leading indicators, not just outcomes.
Compounding works by providing a reliable heuristic for a common class of problems. Instead of reinventing decision-making each time, you apply a tested pattern.
Reading 20 pages/day looks small but becomes dozens of books per year.
This model is most useful when you're stuck. If your current approach isn't working, Compounding often reveals the hidden constraint.
Over-applying: Not every problem benefits from this model. Match the tool to the situation.
Under-applying: People learn the model but don't practice it. Application takes repetition.
Misunderstanding the principle: Surface-level understanding leads to poor execution. Study the examples.
Ignoring context: The same model works differently in different domains. Adapt accordingly.
Identify a current decision you're facing. Write down the assumptions you're making. Challenge each one.
Look at a past failure. Apply Compounding retroactively—would it have changed the outcome?
Teach the model to someone else. If you can't explain it simply, you don't understand it well enough.
Set a reminder to apply this model once per week for the next month. Track the results.
The best thinkers have internalized multiple mental models and apply them fluidly based on context.
Mental models require specific cognitive traits to execute. Do you have the Discipline for this?
Small improvements repeated over time produce non-linear gains.
Prioritize habits and systems that you can sustain daily; track leading indicators, not just outcomes.
Reading 20 pages/day looks small but becomes dozens of books per year.
Use Compounding when facing complex decisions in the productivity domain, when conventional approaches aren't working, or when you need a structured framework for analysis.
Compounding is used by strategic thinkers, business leaders, and anyone who needs to make high-stakes decisions under uncertainty. It's particularly popular in investing, startups, and engineering.
Yes. Mental models are learnable skills, not innate talents. The key is deliberate practice—actively applying the model to real decisions, not just reading about it.