The Habits Compound Effect

Have you ever given thought to how compound growth can help an investment grow exponentially over the years? If you have a little time and a decent interest rate, you will be able to see the numbers stack pretty quickly. Compound interest is not new information, as people like Warren Buffet have been singing the praises of the compound effect for decades. But here’s the thing: compounding doesn’t solely work with finance. You can see the compound effect has a massive impact on all parts of your life. It all starts with the habits you choose each day. From what you eat to how you move your body, what you feed your mind, which you give your time to, what you focus on, and how you manage your time. Your habits compounded over time will have a massive impact on your life. 

I’ve talked about this many times in my posts; habits are a choice. One wrong choice might not make much of a difference, but over time making the same types of choices will essentially make you who you are. If you want to see what your future will be like, take a look at the habits you practice today. If your future is a garden, think of each habit like a seed that you water each day. 

So many people I talk to think there is a magic formula for success. One big secret that the people are winning at life keeps to themselves. But the truth is, it’s not a big secret that’s holding people back. It’s a small, simple act done over and over that adds up like compound interest. 

So, my question for you is, “what are you consistently doing, and what are you consistently focused on?”. 

Have you ever heard of the latte factor? David Bach wrote books and speaks about the latte factor all of the time. The concept is simple. A $4 latte a few days a week could very possibly be costing you not only thousands of dollars but also your retirement savings or college fund etc. The idea is $4 a day for 20 years is thousands of dollars, but imagine if you invested $4 a day for ten years with interest. $4 a day with 7% interest over 20 years is a little over $63,000. See how compound interest has a huge impact? Now think of your habits as the latte and consistency as the interest. Will you be proud of the patterns you have now in 20 years? What seeds are you planting for your future?

I tell my team all the time: “What are you doing or not doing each day?” The action steps you do over and over will be what makes you a good salesperson or an outstanding salesperson. Who are you putting in the pipeline? How big is the pipeline? If you want to reap the benefits of consistent typical orders, repeat happy customers, large orders from big companies, you must be doing what it takes every day. How many people are you calling? Are you asking for referrals? Do you follow up consistently? Do you check in with current customers? Do you reach out to businesses and ask for a sale? Do you try to generate your leads or wait for them to come to you? 

Do you see how habits now become a reality later? 

Do you work on self-development? Do you read, meditate, have goals, do you make calls, get creative, and put the fate of your success in YOUR hands? Take a look at your habits over the next weeks and ask yourself if they compounded over time what your future holds.

In 90 days, if you adjust your habits, you’ll see a good change in your life. I can guarantee it. In one year, I can predict your life will look a lot different.

Keep the habits that support your personal and professional growth, and let go of those who do not. Be honest with yourself. If you have big goals, how many calls each day will REALLY get you to where you want to be? Are you settling for what’s comfortable or pushing yourself to be what you want to be?

I hope this helps you see how the compound effect will change your life. Being self-aware and re-adjusting your habits is a significant first step.

Choosing to make an extra five calls a day might not seem like much right now, but those five calls will add up to more than 1500 calls in a year. And those 1500 extra calls will undoubtedly give you better performance results. Decide to be more aware of your habits right now. 

If you are reading this, you want the next month, year, and decade and beyond to be better than it is right now. One great habit is reading blog posts like this for feeding your life-long learning habit. I’m happy to be a part of your journey and hope this can encourage you to change even just ONE thing you do each day. It isn’t a big secret. It’s a small change and a small choice compounded over time. 

Ready to start a life-changing habit?

Let me know by commenting on this blog post. I’d love to hear what you are going to do!