Book Simplified : The Compound Effect - by Darren Hardy

on

    

Learn about the eighth wonder of the world- compounding. 




Introduction

You reap what you sow; you can't get out of life what you're not willing to put into it.

Success isn't about doing five thousand different things well. Success is doing the right things well five thousand times over.

You do not need new information; you need a new plan of action.


What is the Compound Effect?

The Compound Effect is the principle of reaping huge rewards from a series of small, smart choices.

Small Choices + Consistency + Time = Radical Difference

The most challenging aspect of the compound effect is that we have to keep working consistently for a long time before we begin to see the payoff.


The Magic Penny

Option 1 - You are offered $3 million 💸.

Option 2 - You are offered a single penny 🪙 that doubles in value every day for 31 days.

After 31 days:

  • If you chose option 1 - You have $3,000,000.00 (if you don't spend it 🙅)
  • If you chose option 2 - You end up with $10,737,418.24. FUN FACT- on day 29, you will only have $2.7 million. You beat option 1 only on day 30.

Choices

Your life is the product of your moment-to-moment choices.

Everything in your life exists because you first made a choice about something. Each choice starts a behavior that over time becomes a habit.

You have to be willing to give 100 per cent with zero expectation of receiving anything in return.

Preparation + Attitude + Opportunity + Action = Luck


Action Step 🖉 :

  • The first step toward change is awareness- Start tracking your behaviours for at least one week.

Habits

Our habits and routines allow us to use minimal conscious energy for everyday tasks.

While forming habits, all of the hows will be meaningless until the whys are powerful enough.

When your actions conflict with your values, you will end up unhappy and frustrated.

If you want to have more, you need to become more.


Action Step  🖉  :

  • A goal that is not in writing is merely a fantasy- Make a list of your important goals for your business, finances, health, family and lifestyle.
  • What stands between you and your goal is your behaviour- Make a list of bad habits that might sabotage your progress.

Eliminating Bad Habits ❌ :

  1. Identify your triggers (the "who", the "what", the "where", the "when")
  2. Get rid of the triggers.
  3. Replace or swap out bad behaviors with good ones.
  4. Take small steps to unwind your bad behaviors.
  5. Some researchers have found that changing multiple bad habits at the same time can be helpful.

Action Step 🖉 :

  • Every 3 months, pick one vice and abstain for 30 days.
  • If you find it difficult to abstain for those 30 days, you may have found a habit worth cutting out of your life.

Conclusion

  • Life is simply a collection of experiences. Our goal should be to increase the frequency and intensity of good experiences.
  • Use consistency to gain momentum.
  • You cannot hang out with negative people and expect to live a positive life.
  • Don't wish it were easier; wish you were better.
  • Add a little audacity to your repertoire.

Learning without execution is useless. So go out there and get shit done.



The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge.

DR. MARTIN LUTHER KING JR.



Comments

Post a Comment