The Compound Effect – Darren Hardy

How do you create the life that you’ve been dreaming of? According to Darren Hardy, publisher of SUCCESS magazine, it’s through the Compound Effect. Essentially, the idea behind this is that humans are creatures of habits. The habits that we act upon daily is what builds up over time and thus sculpts our lives. There are no overnight successes, however over time your buildup of successful habits is what builds you for success. Points taken away:

 

1. To get to where you want to be, an awareness of the actions that you’re taking that are contradicting to that goal is needed. “If you want to get from where you are to where you want to be, you have to start by becoming aware of the choices that lead you away from your desired destination. Become very conscious of every choice you make today so you can begin to make smarter choices moving forward.

 

2. The REAL cost of your money today is more than you think it is; save that money that you would be spending on unnecessary items. This is the principle of the time value of money. Did you know that every dollar you spend today, no matter where you spend it, is costing you nearly five dollars in only twenty years (and ten dollars in thirty years)? That’s because if you took a dollar and invested it at 8 percent, in twenty years, that dollar would be worth almost five. Every time you spend a buck today, it’s like taking five dollars out of your future pocket. I used to make the mistake of looking at a price tag and thinking that if an item was listed at fifty dollars, it cost me fifty dollars. Well, yes, in today’s dollars. But if you consider the potential value of that same fifty dollars after it has been invested for twenty years the cost (what you lose by spending that money rather than investing it) is four or five times greater! In other words, every time you look at an item that costs fifty dollars you have to ask, ‘Is this item worth $250?” If it’s worth $250 to you today, then it’s worth buying.

 

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3. A big reason as to why we do what we know we shouldn’t do is because of the lack of immediate consequences. Don’t be so myopic and look at the long term effects of your actions. If you took a bite of a Big Mac and immediately fell to the ground clutching your chest from a heart attack, you might not go back for that second bit. If your next puff on a cigarette instantly mutated your face into that of a weathered eighty-five-year-old, chances are you’d pass on that, too. If you failed to make that tenth call today and were immediately fired and bankrupted, suddenly picking up the phone would be a no-brainer. And, if that first forkful of cake instantly put fifty pounds on your frame, saying ‘no thank you’ to dessert would be the true piece of cake.”

 

4. If you’re lacking motivation on getting what you need to get done, find an accountability partner to help you with it. You’re more likely to get what you need to get done if you tell someone that you’re going to do it. Another way to increase your exposure to expanded associations is by teaming up with a peak performance partner, someone as equally committed to study and personal growth as you. This person should be someone you trust, someone bold enough to tell you what they really think about you, your attitudes, and performance. It could be that this person is a longtime friend, but he or she may be someone who doesn’t know you well at all. The point is to get (and give) an unbiased, honest, outside perspective.

 

My rating:
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Thank you for reading! Please leave a comment below on a micro action that you can start today to start you on the right track to where you’d like to be. Please join my Facebook group here follow my Twitter here like the post, or share it.

 

By Ryan Lee

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1 Comment

  1. […] habits that you build over time has a compound effect as stated by Darren Hardy in his book The Compound Effect and can either work for or against you. When we watch professional athletes perform, we’re […]

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