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Making small but smart choices is one of the best mantras to achieve the desired results in any aspect of our life whether its professional or personal life. However, this mantra of making small but smart choices is a principle which is known as “Compound Effect”. The compound effect is a principle of reaping huge rewards from a series of small and smart choices. It works like Compound interest- which is calculated on the principal amount as well as on the interest over a period of time, which means the interest on interest.

The compound effect consists of three important factors

1- Making Small but Smart Choices

In order to get the desired results in any area of our lives, we must start taking small but smart choices/decisions on daily bases. We must be careful and consider future implications while making day to day choices because each choice we make today is going to affect us tomorrow, next week, next month, next year or in the future. So considering all the pro and cons and weighing all the options is a must

2- Consistency

A second most important factor in this principle is being consistent. for example, if we want to lose weight we must hit the gym on a daily bases to get the desired results otherwise going to the gym once a week not going to help us. So consistency is key in this principle.

3- Time

A third and most important factor in the compound effect is the Time. However each task, objective, or goal requires a time period to produce the desired results. For example, is we want to get a master’s degree we have to study 3 yrs to complete that, we can not shorten the time length no matter what. Unfortunately, we expect quick results that’s is the reason that half of the time people give up if they do not see any immediate results. But if we want this principle to work in our favor we must follow all the factors to achieve success in our respective domain.

  • Common Misconceptions about Compound Effect

The most common question regarding the Compound effect is how to measure its performance is real-life cases. Because, when it comes to compound interest we can easily calculate the accumulated interest amount to see the difference but in real life case it is difficult any measure the effect. So to answer this question logically we can use different examples, such as if we want to build a new hobby, for example, reading books we have a very hard time even reading a few pages, because of advanced English, difficult vocabulary, lack of focus, etc.

But with the passage of time if we are consistent and give enough time to this new hobby then we gain momentum and we start seeing improvement in our reading as well as in the understanding of concepts and difficult words. After maybe 6 months or 1 year, we become good readers, we have a good vocabulary, good reading speeds, and focus.

  • Making Small and Bad Choices

The compound effect works in both positive and negative ways. As mentioned above if we start making small but smart choices we can achieve the desired results but if we are making negative and bad choices the negative results also get multiplied. For example, if we start smoking despite knowing its a slow poison we have no issue smoking 2- 3 cigarette packets daily but as we grow older, maybe after 15-20 yrs down the road start coughing even if we take one drag. That’s why it’s very important to make smart and careful decisions or choices as we are the ones who will bear the burden at the end. It’s not the elephant that bites but mosquitos do, it’s the very small choices we make on a daily basis that affect the most in the long run.

  • Taking 100% Responsibility

According to Darren Hardy- the Author, Public speaker, and Publisher of Success Magazine, the best that happened to me was attending a seminar on Taking responsibility at a very early age. However, it helped me to take responsibility for myself, my choices, and decisions that I make on a daily basis which resulted in success that I achieved today. So once we understand that we are responsible for our actions and choices we become careful and think twice before making any choice or decision.

  • Winners are trackers

Another important factor than helps the compound effect principle to work in our favor is tracking. However, according to Darren Hardy, the most common thing among successful people I observed while conducting their interviews for Success magazine is tracking, they all track everything, their performance, progress, actions, and their results. that’s how they avoid and eliminate bad choices and go with smart and productive options to achieve their desired goals and get success.

Hence, all these options are interconnected, if we take our 100% of our responsibility we start tracking everything and make small and smart choices to achieve success. and that’s where this principle of Compound effect comes into play and increases our results tenfold

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