What We Easily Overestimate and Underestimate

“Most people overestimate what they can do in one year and underestimate what they can do in ten years.”

— Bill Gates

In general, we have a bias when it comes to time. We easily think we can do a lot in a small amount of time but completely underestimate what we can achieve in the long term. This is why setting up small but consistent habits that benefit us daily adds up tremendously in the long term. Consistent investing over long periods and allowing the strength of compounding to work its magic is just one example of what we can achieve over a long period.

This is why I am a big fan of doing tiny habits. Will doing 20 pushups every morning for a few days get you in shape? Absolutely not. For a year, now we’re talkin. Will smoking one cigarette kill you. Nope. How about smoking for 20 years. You’re pushing your luck. Small habits, whether they are good or bad, may seem innocuous in the short term but over time, have monumental results.