Tiny Steps My Friend, Tiny Steps . . .

Every now and again something comes along to divert your whole life along a different path. I want to tell you about one of those events that happened to me.

 

The Compound Effect

You see I read a book about 18 months ago or so. Or, to be more accurate, I listened to an audiobook 18 months ago called ‘The Compound Effect’ by Darren Hardy.

Darren is the editor of Success Magazine.

compound effect

 

The Compound Effect advocates using constant self-improvement, learning and updating of your skill set to become successful in your life.

From that moment I decided to follow Darren’s advice. Well he does interview self-made millionaires on a regular basis and exposes himself to all kinds of successful people so I reckoned he was in a better position to put forward this theory than most of the people I knocked around with at the time.

I suggest you grab a copy of the book and read it, but the proposal is fairly simple. That is, if you spend a little time each week in improving some areas of your life, over time you will become a much more rounded, knowledgeable and skilled person.

 

Change is a Process

 

My experience since that day backs up Darren’s theory. Over the last couple of years I have become:

– More confident

– Able to speak in front of large audiences

– A better time manager

– Better at managing my finances

– More knowledgeable in many, many areas of my life

– More influential around the people I associate with

– Friends with like-minded people who uplift me

There are many other numerous benefits I have reaped from using this simple approach.

 

The Compound Effect in Action

The whole theory is similar to saving money:

If you saved $1 a day, every day, you would save $365 per year. Not a lot of money, but let’s say you also got some payback with interest at 5% over the years and never touched the savings account, here’s what happens:

Year 1 = $365 * 5% = $383.25

Year 2 = $383.25 + $365 = $748.25 * 5%  = $785.66

Year 3 = $785.66 + $365 = $1150.66 * 5% = $1208.20

So after 3 years you will have invested $365 * 3 = $1095, which with interest has turned into $1208.20. A profit of just $113.20 – not much I hear you cry.

But let’s see what happens after 10 years:

You will have invested $3650, which with compound interest will have turned into $4,820.48, a profit of $1,170.48.

After 25 years it becomes really interesting:

You would have invested $9125 but your bank balance will be $18291.25, a profit of $9166.41.

YOU HAVE MORE THAN DOUBLED YOUR INVESTMENT!!

 

Stacks Of Coins On  Graphs And Charts

 

So who couldn’t afford to find $1 to invest a day. More importantly who couldn’t find 1 hour a day to invest in themselves and become a better person?

Where could you find 1 hour per day to invest? Watching TV, reading a newspaper, listening to the radio?

 

Automobile University

One of the easiest ways I have found is by practicing what Zig Ziglar calls ‘Automobile University’. This involves listening to a motivational or self-development audiobook or training package in your car on every journey. If you travel to work, calculate how many hours a week you could employ this method and deduct it from your 7 hours a week development time. Is the new total more achievable?

 

transportation and vehicle concept - man using car audio stereo

 

In the past 3 days I have completed 4 courses on Udemy, much more than the 1 hour a day investment, but as you improve you get hooked and I now prefer investing my precious time in myself and not in some TV program that adds little value to my life.

So I encourage you to invest in yourself. Who knows where you will be in 25 years time? Hopefully thanking myself for putting you on this path.

Until next time . . .

 

Terry Jenkins

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