June 2022 Issue | How Can You Harness the Power of Compounding in Your Life?
By Dhanishta Shah
Do you find yourself overwhelmed with tasks? Are you unable to cope with the sheer perceived volume of work? Or maybe, you’re looking at a more effective manner to manage your to-do list. You may want to enhance your productivity and organization skills.
“Little by little one travels far” goes an old adage. This statement perfectly describes the working of “The Compound Effect.” Financial experts have called “compounding” the eighth wonder of the world. Even a little amount saved every month will add up to a lot over a period of time. Similarly, the Compound Effect, put very simply, refers to the principle of reaping huge rewards from small, smart but consistent choices.
Several articles talk about the compound effect, and how doing little bits of a task daily adds up to a lot. However, in order to fully reap the benefits of this magical effect, one needs to have some background habits and practices. These act as catalysts. These support the compound effect in action.
In a simple conversational tone, Hardy starts off the book by establishing his credentials on the topic. As the publisher of SUCCESS Magazine, and an expert in the realm of personal development literature, he has access to the ‘wisdom’ out there. He makes no qualms when he proclaims that “No matter what you learn, what strategy you employ, success comes as a result of the compound effect.” The book is peppered with examples from his life, as well as from the lives of successful people he has studied over time. Through six chapters, all quite snappy, comprehensive, and precise, the book paves the way for understanding the nuances behind these wheels set in motion. Here are three factors that particularly resonated with me.
It is said that the compounding effect of small changes leads to an exceptional payoff. But, how do we really know that we are consistently making those small changes? Hardy asserts that tracking is a simple tool that encourages us to be aware of the actions that we take in the areas we want to improve on. “When you track with awareness, you’ll find yourself showing up in your life quite differently” he says. Well, this is maybe why nutritionists often recommend that one maintain a food-diary and jot down everything that one eats to get a true picture of our diet intake! Tracking right is a tool that goes a long way in ensuring that the compound effect is working for you. Hardy recommends starting off by tracking just one habit for one week, and build on from there.
What’s in a routine?
The section on routine particularly resonated with me because following a routine will infuse momentum in the ‘compound effect’ of habits that are working in your life. He suggests that having an efficient morning and night routine is essential. “Developing a routine of predictable, daily disciplines prepares you to be victorious on the battlefield of life,” he writes. A routine that serves you well will also serve to speed up and cement the positive impact of compound effect.
Do you know that people around you exert a lot of influence on your lives? By using Jim Rohn’s concept of the “circle of five,” Hardy impresses on the reader the need to weed out associations that pull us down. Growing and changing your associations is a lifelong process. It is essential to break away from some people regularly, as much as it is essential to involve associations that are healthy and positive right into your life. In fact, the Association Evaluator worksheet in the book helps the reader to identify which associations they need to weed out and which they need to keep. The right associations with the right people can propel our efforts in compounding due to a general aura of positivity and encouragement.
There are other factors as well that facilitate compounding. Let the book guide you into not only understanding what the compound effect means, but also applying it to your life in a sustainable manner. The explanation of the catalysts of compound effect in addition to the bulleted summaries at the end of each chapter make this a handy read. The cherry on the cake is the access to some worksheets and checklists which will serve as useful tools in your journey.
This book will provide you with an alternative way to think about how you can approach tasks. It will show how you can apply the compound effect in forming and establishing habits. So, are you ready to benefit from the power of compounding?