The Compound Effect: How Small Daily Habits Yield BIG Results!

Let’s face it, there are very few “Eureka!” moments. Most big, meaningful changes and achievements happen over time. This is known as the “compound effect”. It’s like compound interest: earning a few dollars a month doesn’t sound like much, but after 30 years, it can translate into financial security.

Similarly, if we take one small constructive step each day, eventually, the result will be a major change. For example, cutting out one sugary beverage per day could result in losing 15 pounds after a year. But unfortunately, the compound effect also works with negative habits. If you spend an extra few dollars on expensive coffee every day, or sleep late so you’re forced to drive to work instead of walk, a year later you’ll notice a substantial hole in your budget—and maybe a bigger belly!

Here’s how to make the compound effect work for you:

1. Make conscious choices. Don’t just float through life letting things happen to you based on your whim at the moment. Think about everything you do, weigh the pros and cons, consider the long-term consequences, then choose healthy, positive, constructive actions.
2. Turn your actions into habits. Once you’ve chosen to take a positive action, keep repeating it until it becomes a habit. Then you don’t have to think about it or force yourself to do it: it just becomes automatic. (But remember, if you choose a negative action and it turns into a bad habit, it’s VERY difficult to break.)
3. Let time work its magic. This is where patience comes in. The small steps you’re taking each day may seem insignificant, and you might begin to think you’re wasting your time. But once you’ve established a good habit, just keep doing it. Don’t think about it or over-analyze it. After a year—or 10 or 20 years—you’ll be astonished by the great things you’ve accomplished!

If you’d like to learn how to use the compound effect to achieve financial security, please give us a call today.

Kupina MortgageTeam  905.730.4782 – mark@kmortgage.ca