The compound effect

$1000 000 today or $0.01 compounded for 30 days?

It may seem like a simple choice. But, the latter is worth $5,368,709.12.

The compound effect.

Successful people do consistently what others do occasionally. Small, consistent actions have a ripple effect on your life.

This is where most people go wrong with New Year’s resolutions.

People want instant gratification. If they do not see results within the first few days, they fall back on bad habits.

The compound effect works both ways. This is what makes bad habits so dangerous. They usually provide instant comfort but with long-term consequences.

We are what we repeatedly do. Establish a positive compound effect in your life.

1. Set your Values.

Values are your non-negotiable navigation system. They guide your daily actions and decision-making.

Question to help you find your values:

What is non-negotiable to me?

2. Set your Why.

Will power does not work, Why power works. When the reason is big enough you will execute daily.

Question to help you find your motivation:

Why are my values non-negotiable to me?

Useful app to write down and read your values and why: Microsoft OneNote.

3. Set SMALL daily actions.

Small daily actions repeated consistently become habits.

Avoid falling into the trap of setting big daily actions. This compromises your consistency.

Your daily actions need to be convenient and fit into your schedule. Once they become habits, repeat the process and add more small daily actions.

Track your behavior in the area where you want to change. Take note of your current actions to identify your mistakes. Being conscious of your actions will help you to change them.

Question to help adjust your small daily actions:

1. What current actions do not align with my values? (Identify problem)

2. How can I adjust my actions to align with my values? (Define solution)

3. Can I repeat this action, daily, for the next year? (Ensure solution can be repeated consistently)

Write down your daily actions and tick them off.

Useful app for tracking daily actions: Microsoft To do.

Read, tick it off, and repeat daily:

1. These are my values.

2. This is why they are my values.

3. I will take the following actions to align with my values.

Small daily actions compound into results.

Thoughts derived from:

The compound effect — Darren Hardy.

#compound #motivation