The Compound Effect – Darren Hardy [Book Summary]

by Nick

This book is on almost all the lists of recommended literature on personal productivity and self-development.

“The Compound Effect” is a book based on the principle that fate is determined by a person’s own decisions.

Those are small and insignificant, everyday decisions that can bring life to prosperity or disaster.

Darren Hardy, the publisher of Success Magazine, sets out in his book the very essence of the fundamental principles behind the most outstanding achievements in business, relationships and other areas of life.

The light and practical system that he offers will allow you to multiply your successes, plan it in advance and achieve whatever you want.

Get The Compound Effect:

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All Top Insights From “The Compound Effect”

  • You don’t need more knowledge. You need a new plan of action. This book provides a very clear blueprint that will help you start improving from this day on, keep consistent, and track your results. The earlier you start making changes the more the compound effect works for you.
  • You alone are responsible for your situation. You are not mature yet if you are not willing to accept full responsibility for your life and situation you are in at this moment.
  • Start by saving 1 percent of your money each month. Then save 2 percent next month. Continue until you are saving about 10 percent of what you earn. Strive for more.
  • Become a life-long learner. Learn something new every day. Read and listen to powerful books on your area of expertise. No one is going to keep someone around just for showing up. You have to continually improve.
  • Cultivate strong and positive habits. The older your habits are and the deeper their roots, the harder they are to quit or change. Find your “why” and your purpose for picking new habits that will change your life. Identify your triggers for your bad habits: the who, what, where, and when that prompts you to start your bad habits.
  • Write down your most important goals. When you set a goal, most people ask, “What do I need to do to achieve your goal?” Instead, you should ask “Who do I need to become?”  Start by getting rid of your triggers. Throw away junk food, etc. Be patient. You’ve spent many years repeating bad habits. It’s going to take years to build good ones. There is no way around it.
  • Momentum plays a huge role in life. Objects in motion tend to stay in motion. The hardest part of momentum is, of course, the beginning. But once you get moving you can keep going quite easily.
  • Low-Information Diet Don’t waste your time watching TV, eating trash, reading useless stuff, consuming negative stories, and gossips.
  • Find Mentors and Coaches. Do you have your personal board of advisors? Who are the 5 experts you get advice from? Read their books, attend their seminars, and ask their advice.
  • Always go a little bit beyond people’s expectations. Do a little more. Try a little harder. Dress a little nicer.

The Summary you might like: Maximum Achievement

3 Most Important Ideas  From the Compound Effect by Darren Hardy

  1. The Compound Effect in Action

“The Compound Effect is the principle of reaping huge rewards from a series of small, smart choices.”

This idea behind The Compound Effect is that small consistent action over a long period of time has greater payoffs than intensely large but short changes. 

Darren Hardy gives us a simple formula to explain:


Here are a couple of examples to illustrate this idea:

  • Example 1: A single penny that doubles every day for 31 days has a larger payoff than taking $3 million in cash today.
  • Example 2: Three friends who start off in relatively the same place—one makes no changes (good or bad), one adds a weekly beer to his diet and watches TV on his downtime, another makes some small changes like eliminating 200 calories a day and reading 10 pages of a good book daily… Which of these three people do you think will end up in a better place two years down the road? 

Bottom line?

The small choices we make everyday impact the results we experience in the future.

At first, we won’t see the difference, 5 months or even a year goes by and everything may look relatively the same.

But give it two or three years and the differences can blow you away.

So, what are some small choices you could be making on a daily basis, that could compound into positive changes for you in the future? Write them down, and get committed. 

  1. Be Diligent and Consistent

“The most challenging aspect of the Compound Effect is that we have to keep working away for a while, consistently and efficiently, before we can begin to see the payoff.”

Repeating simple daily disciplines has big payoffs while repeating simple errors in judgment creates problems and leads you away from success.

To find a radical change in every area of your life, you only need to take a series of tiny steps, but you need to do so consistently over a long period of time to improve your life. 

You won’t find success sitting on your couch wishing for it. You’ve got to do the hard work and stay consistent, even when you aren’t seeing the results. 

Here’s another important thing to keep in mind: It can get easy to take success for granted and start slacking off once you start seeing positive results…

Don’t do this! You will take major steps backward in doing so that will be difficult to regain.

Instead of slacking off when you start seeing positive results, take it as a sign that you’re moving in the right direction, and then, put things in high gear and keep up the momentum!

Let go of the need for instant results. Success is not fast. Change is hard, be patient with yourself.

Ask yourself the following questions:

  • What are some excuses you currently hold on to that you know aren’t contributing to your growth and success? 
  • What are some small steps you can start taking every day to shift your life in a better direction?
  • What are some small things you can stop doing that might be hindering your success?
  1. Your Decisions Determine Your Destiny

“Choices are at the root of each of your results. Each choice starts a behavior that over time becomes a habit.”

You must begin by becoming aware of the choices you are making and how those choices impact your future. Things don’t just happen to you in life, they happen because somewhere along the line you made a choice that led to that moment. 

Our biggest challenge isn’t that we make bad choices willingly but that we make choices based on the habits we’ve created. 

We “sleepwalk” through choices unaware that we even make them. Just as The Compound Effect can work for you as you increase small, smart choices it can work against you (and probably has been) in the very same small, seemingly insignificant choices you make on a daily basis.

One important choice that MUST be incorporated in a steady diet is the choice to be grateful. Choosing gratitude influences other areas of our lives and makes us better people, better at relationships, more pleasant to be around, and generally happier about life.

Why You Should Read “The Compound Effect”?

  • To take full responsibility for your life
  • To start improving day after day
  • To learn how to track the results and jumpstart any area in your life
  • To find out how to achieve success by doing small but consistent actions on a daily basis

Get The Compound Effect:

Audiobook | eBookPrint