The Compound Effect Darren Hardy ~ Book Summary

The Compound Effect Darren Hardy ~ Book Summary

The Compound Effect by author Darren Hardy emphasizes how success in any area is a result of small, smart choices + time = radical massive results. The compound effect is quite unpopular since we live in a generation where two industries are thriving, fast food and fast weight loss. Most google searches are centered on how to – overnight. The dash being, lose 2kgs, make 1k, or grow my hair. Honestly, there is no such thing as overnight success. Most people do not tell you about the hours they put into their business before it became an overnight success or how many many job applications they sent through before they got that well-paying job with tons of benefits. I love this famous quote that says ” I worked all my life to become an overnight success”. This shows that there is some work being done behind the scenes before the rest of the world sees the public victory. If you are looking to achieve overnight success in any area of your life, the compound effect by Daren Hardy is not for you.

Best Example To Illustrate the Compound Effect: The Magic Penny

Daren writes,

If you were given a choice between getting $3 million in cash today or a single penny that doubles in value every day for 31 days, which one would you choose?

Darren points out that the majority of people would take the $3 million today because it not only looks like the better deal, but it also takes a lot longer to see the payoff for the magic penny. In fact, the Compound Effect of the magic penny is invisible for much of the time.

For instance, if you picked the magic penny and your friend took the other option, on day 10 your friend would have $3 million in cold, hard cash, while you would have only $5.12. On day 20, you would have $5,243, which is a lot better than $5 but still nowhere near the $3 million dollar mark. By day 29, you’ll have $2.7 million, almost as much as your friend’s $3 million. However, it isn’t until day 30, that your magic penny bet pays off and is now worth $5.3 million. On day 31, the very last day, your penny doubles again and is now worth a total of $10,737,418.24. About three times more than your friend’s, now tiny, $3 million prize.

Choices

We first make our choices, then our choices make us

darren hardy

In this chapter, the author talks about how we are a result of our choices, the choices we make daily make up our weeks, these weeks make up our years, and finally, the years make up our lives. Not making a choice is also a choice to be passive. We love saying things like, I had no choice but really that’s the choice you would have chosen, most of the time one just does not want to take the high road. Of course to agree with this, one has to take 100% responsibility for their life. You are where you are right now because of you. When you don’t own your life you are likely to finger point all the time, to play the blame game ~ blaming your upbringing, the cruel hand that life has dealt you, the education system, the list is endless.

It’s not the big choices that make or break us, but the small ones you make each day. He gave an example of taking one bag of potato chips and a soda every day and then wondering how 5 years from now you are overweight. It was the seemingly small choices you made. Another example is not putting aside a portion of your income month after month and years later you wonder why you are broke and have nothing to your name. A choice not to intentionally communicate and appreciate your loved ones around you will cost you your relationships in the long run.

Everything in your life exists because you first made a choice about something. Choices are at the root of every one of your results. In essence, you make your choices, and then your choices make you. Every decision, no matter how slight, alters the trajectory of your life.

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Habits

Aristotle ~ We are what we repeatedly do

Dareen Hardy writes about the story of a man riding a horse. There was a man riding a horse, galloping quickly. It appears that he’s going somewhere very important. A man standing along the roadside shouts, “Where are you going?” The rider replies, “I don’t know. Ask the horse!” This is the story of most people’s lives; they’re riding the horse of their habits, with no idea where they’re headed. If we are not intentional about our habits, they might be leading us further away from our dream instead of closer. The secret to your success is hidden in your daily routine.

Instant gratification

The best way to let go of bad habits and create new good habits is to, get out of the instant gratification trap. Instant gratification is usually the foundation of bad habits. What will make me happy right now? not considering whether or not it is beneficial for later. Here is my favorite passage from the book on instant gratification

We understand that scarfing Pop-Tarts won’t slenderize our waistlines. We realize that logging three hours a night watching Dancing with the Stars and NCIS leaves us with three fewer hours to read a good book or listen to a terrific audio. We “get” that merely purchasing great running shoes doesn’t make us marathon-ready. We’re a “rational” species—at least that’s what we tell ourselves. So why are we so irrationally enslaved by so many bad habits? It’s because our need for immediate gratification can turn us into the most reactive, nonthinking animals around.

Influences

Darren Hardy writes, “everyone is affected by three kinds of influences: input (what you feed your mind), associations (the people with whom you spend time), and environment (your surroundings)”. What you put in is what you get out. If you are constantly feeding yourself negativity and spending time with people that are not productive and passive, chances are you won’t bring out much in life. Be intentional about what you let into your life because sooner to later it will start reflecting in your day-to-day life. Create a positive environment to support your success by clearing all the clutter in your life. Remember in life you get what you tolerate.

Take inventory of the people around you. There are some people you can spend three hours with, but not three days. Others you can spend three minutes with, but not three hours. Always remember that the influence of associations is both powerful and subtle. The person you’re walking with can determine whether you slow your pace or quicken it

To Sum It All Up ~ the compound effect summary action steps

Take full responsibility for your life. Your life is affected by your daily choices so make good choices. Do the small things daily, build momentum, and as time goes by you will reap good rewards

About the compound effect Darren Hardy

The compound effect is the strategy of reaping huge rewards from small, seemingly insignificant actions. You cannot improve something until you measure it. Always take 100 percent responsibility for everything that happens to you.

The compound effect resources

http://www.thecompoundeffect.com/free

To get the full book click this link, https://www.amazon.com/Compound-Effect-Darren-Hardy/dp/159315724X, or sign up for my newsletter and get a copy!

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