There are a number of different theories and strategies to consider when aiming for success.
Because everyone’s different, there are different responses to these strategies depending on how you do business. Then there’s the compound effect.
The compound effect is the idea that your everyday life decisions will lead you either to your destiny or disaster. Let’s take a look at some of the ideas within the compound effect.
- A Dollar Isn’t Really a Dollar
This sounds confusing – but it isn’t. Think about it – if you spend a dollar, you’re really spending five. This is because of the compound effect. In a few years’ time, that dollar will be worth five.
Which would you rather, a dollar now or five dollars in a few years? The best way to stick to this principle is this: if something is worth five times its price tag, buy it. If it’s not, don’t.
- Buy Your Peace of Mind
You want to set yourself up for later, right? You want your personal finance to be golden by the time you’re enjoying the golden years yourself.
You can achieve this by investing 10% of everything you earn. While it may not seem like much, the compound effect would argue that it will add up to a surprising amount, especially if you put it away to grow and don’t think about it all the time.
At the end of the day, choices like this are all about behavior, with a little bit of smarts.
- Don’t Believe all the Hype
It’s hard not to listen to what’s going on in the news – it’s everywhere, and has a significant influence on how most people live their lives, especially when it comes to finances.
Instead of looking out at the world, focus instead on your world. Just because the media is saying something doesn’t mean you need to start despairing and withdraw all your invested money. Go with your gut and listen to your instincts – play the game your own way.
It’s too often that the news is negative. If you spend too much time on it, you’ll end up negative, also.
- Start Strong and Finish Stronger
Successful people build good daily habits. Some of these include going to bed early and getting up early. What you do with your time in-between is also just as important – every minute counts.
It’s a good idea to pick your morning activity so that it sets you up well for the rest of the day. When you go to bed, you’ll want to make sure you’re prepared to have a good, restful sleep, and be ready to jump back into it again the next day.
Conclusion
It’s hard sometimes when all you see is successful people on social media. They make it look so easy, right?
You only see the part they want to show you. You don’t see their feet under the water, paddling furiously away. You know what? They’ve been doing this since day one.
