Lets understand about the compound effect.
There are many questions that come into our mind such as: How is the book the compounding effect? Is the compound effect a good book? What kind of book is the compound effect? What does the compound effect tell us?
So, I recently read the book “Compound Effect by Darren Hardy to understand the compound effect from the author’s point of view.
To understand the core message of this book, let’s play out a little scenario. There are two options for you to choose from.
Option 1: Rs. 100 with 10% compounding every week.
Option 2: Rs. 5000 every month.
From the above options, your friend chose option 1 and you’re left with option 2. To you, option 1 seems to be a bad one on its face value. Let’s see why do you think so.
After week 20, you have accumulated Rs 5725.5 and your friend got Rs 100,000. Still dejected. Now you would have realized why option 1 is not a great one.
After week 52, which is the end of one complete year, you have Rs 1.41 lacs and your friend has Rs 2.60 lacs. Still, your friend seems to have a better deal. You must be regretting making a stupid decision and beg to take the other offer.
READ MORE: Book Review: The ONE Thing by Gary Keller ( 2024)
You must be ridiculing yourself for choosing this option 1, whereas your friend is on cloud nine making a consistent amount month after month.
Now, let’s fast forward to week 104, at the end of two years, to see what the scenario is. Your friend has Rs 5.20 lacs and you have accumulated an astonishing sum of Rs 2.01 crores.
That’s what power compounding is! This story illustrates that small unsexy but smart decisions made consistently every day that are in alignment with your big vision led to seemingly incomprehensible and incredible results that you can be truly proud of one day.
The Author in this book has tried to explain the same concept to us with different life scenarios.
Author Darren Hardy found that almost all self-made success uses the compound effect.
READ MORE: Book Review: Mind to Matter by Dawson Church
He says the interesting thing about this process is that even though the results are massive, the steps at the moment don’t feel significant. The changes are subtle. They’re almost imperceptible. The small changes you make every day offer no immediate result. No big win and no obvious.
Effect Of Compounding:
Albert Einstein
Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”
We live in a culture that promotes what Darren calls a microwave mentality. We expect instant downloads, fast food, and same-day shipping to stay true to the compound curve.
We need to trade the need for immediate results for immediate alignment with our core values. Darren says, your core values are your internal compass, your guiding beacon, your personal GPS.
They act as the filter through which you run all life’s demands requests and temptations making sure they’re leading you towards your grand vision.
Your intended destination getting your core values defined and properly calibrated is one of the most important steps in redirecting your life towards your grandest vision.
When you know that what you’re doing from moment to moment that the choices and decisions that you’re making every moment aren’t aligned with your core values, you stop needing to have instant results show up in your life.
Darren says that most of us are sleepwalking through our daily choices half the time.
We’re not even aware that we’re making them make sure that I am aware of my choices during my work hours.
Sometimes knowing that we’re making good choices isn’t enough to know that we were on the right path, the compound path.
We need to focus and measure the percent games, not the gains received in option 2. In the initial example, in option 1, if I would have focused on the net income. I was making each month and how petty it was in comparison to my friend then I would have given up but by focusing on the month-over-month return the percent gain.
Conclusion
We humans routinely overestimate what we can produce in a week but we vastly underestimate what we can produce in a few months or in four years of stained effort.
That was the core message that I gathered from Darren’s book. If you are struggling to stick with your goals, keen for taking your productivity at 10X level, I highly recommend reading the book “The Compound Effect”.
If you are interest to explore of “the compound effect”, you can buy this book here.
READ MORE: Book Review- MINDSET by Carol Dweck
FAQ
Darren Hardy Net Worth?
Finding excat answer to this question is quite difficult becase of privacy of his finances.
His income is not widely available in the public domain.
However, some estimates that it is estimated between $50 million to $100 million.
Darren Hardy primarily earns from selling books, courses, public speaking, etc.
- Best Paper Trading Application In India
- Ashneer Grover Net Worth: Income, Wealth & LifeStyle!
- Stock Trading In India For Beginners: Step By Step Guide
- Vastu Shastra For Home: Boost Positive Energy Of Your Home.
- ESG Full Form || ESG Investing: A Complete Guide
2024 apartment Banking biography book review books Broking cards cibil score complete guide credit cards demat esg investment facts finance fintech flats forex governement schemes home home buying home loan investment loan mindset mind to matter mivan technologies mutual funds neobanks nri OC and CC p2p personal finance plots plots in lucknow reading habits real estate real estate terms retirement planning reviews stock market tax benefit taxes trading vastu
