The Compound Effect Book Summary
Advertisements
Loading...

In this post, we will talk about a book that will teach you about Compound Effect. Compound Effect is considered the 8th wonder of the world. This effect does not just work for the increase of money, but also helps us in achieving something in our life.

Author Darren Hardy has written a wonderful book about this effect called The Compound Effect. Which we talk about in this post. So let’s start.

The Compound Effect :

Many times we think that from today I will workout every day, we will learn a new skill, and we will work more. But when it’s time to do that, we say to ourselves, “Today I am very tired, I’ll definitely start from next week”.

But after one week the same story continues. This happens because we think that we can change ourselves with just a snap of a finger. But most probably this will not happen.

Change happens slowly. When we consistently take small steps then we get our desired result. Earn 20 lakhs working just 2 hours from your home, Lose 20 kgs in a week, get 20 years younger with this cream. Because of such advertisements, we have forgotten what it truly takes to achieve success.

The truth is success still requires the good old hard work, consistency and discipline. Compound Effect is the principle of reaping huge rewards from a series of small, smart choices.

Suppose you get to choose between two options. First, you get 30 lakhs. Second, you get a rupee whose value doubles every day for the next 31 days.

If you have heard this question before you know you should select option 2 but still, we don’t do that because the reward we get takes a lot of time and so we ignore it.

Suppose you get 30 lakhs and your friend chooses the second option that is he gets 1 rupee on day 1. By day 5, you will have 30 lakhs and your friend will have 16 rupees. Only 16 rupees, not 16 lakhs.

By day 20, you will still have 30 lakhs and your friend will have 52 thousand. Just think about what your friend might be feeling. He must be thinking that he waited for 20 days still he received only 52 thousand, Instead, he should have also selected option 1.

By day 29, your friend will have 27 lakhs and you will have 30 lakhs. Day 30 is when the magic of the Compound Effect will take place and your friend will get ahead of you.

And by the last day, day 31 your friend will have 1 crore+ and you will still have 30 lakhs. Now think what you might be feeling. Till the end, you will doubt yourself and think that your small actions are not having any impact.

But when the compound effect will take place. You will achieve the success that you might have not imagined. When you start understanding compound effect you will stop chasing overnight success.

Now we will look at three factors using which you can profit from the compound effect.

1) Choices:

The Compound Effect Book Summary, Darren Hardy book

Has this ever happened to you? Your life was going great and everything was going well and suddenly you take a stupid decision and all your hard work gets wasted.

This happens because we make most of our choices unconsciously. The small things which we think will not have any effect are the ones that turn into problems.

READ  Josh Kaufman's The Personal MBA Book Summary: MBA Refresher

To change this you can start “Tracking”. Suppose you have a habit of always eating something. Even if you try you aren’t able to control yourself and whatever comes in front of your eyes you just eat it.

So you can start keeping a notebook in your pocket. In which you write whatever you eat apart from your 2-3 main meals. Even if you eat small chocolate, you write it in the notebook.

This way you will be able to track whatever you were eating unconsciously before. And next time if something comes in front of you, you will not eat it because you will have to write it in your notebook.

2) Habits:

The Compound Effect Book Summary, Darren Hardy book

Suppose after just taking a bite of burger you fall down on the ground because of a heart attack. Will you eat the next bite? If after just smoking a cigarette you turn into an 80-year-old man.

Advertisements
Loading...

Will you smoke another cigarette? The problem is there are no instant drawbacks to our bad habits, doing them gives us instant gratification, momentary happiness.

This is why we are not able to look at the long term losses our bad habits will cause. We have to change our bad habits into good ones. And to do this we will have to use our “why power”.

You might have heard of will power. But why power is more important than will power. Why power is the reason you want to change your habit.

Suppose a keep a wooden plank on the ground and ask you to walk on it in exchange for 2000 rupees. You will not think much and just do it. But suppose I keep the same wooden plank from a 15-floor building to another 15-floor building and ask you to do it.

You will straight away say no because for 2000 rupees you will not risk your life. Now suppose the other building is on fire and your parents are stuck in that building.

READ  7 Points For Success From Book Steve Jobs By Walter Isaacson

You will immediately rush to the other building whether I give you 2000 rupees or not. This will happen because in this case, you’re why power is very strong. You want to save your parents!

So this way you need a strong why to change your habits.

3) Influences:

The Compound Effect Book Summary, Darren Hardy book

There are 3 factors that affect us :

1) The information we feed our mind in the form of news, videos, photos, books, etc.

2) The people we spend time with.

3) The surrounding we live in.

Our mind is like an empty glass. It holds whatever you feed it. If we feed news, hatred, negativity then our mind will also get filled with dirty water. And we will only see negative things everywhere.

But if we feed our minds with positive things then our glass will remain clean. If we feed positive, inspirational and supportive ideas to our mind then the dirty water will automatically flow out and get replaced by clean water.

Always remember that the compound effect is always working either in your favor or against you. These were some of the important points from “The Compound Effect by Darren Hardy”.

The Compound Effect book also has more points on how to apply the compound effect with some interesting examples. If you want to buy the book you can buy from the link below.

SPREAD THE LOVE :