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Compound Effect

Compound Effect

Today I was inspired and challenged as I watched a video about the ‘Compound Effect’.  In summary two people are offered the choice between

1. Being paid $10 per week to listen to or read for 30minutes per day, something that will help them develop and grow or…
2. Being paid $5,000 per month for doing absolutely nothing!


Now at first glance this make seem like a ‘no brainer’.  I mean who would take $10 per week for doing something when they could get $5,000 per month for doing nothing?  But there’s more to this story…..

After 12months the person who chose option No. 1 has accumulated $15,540 and the person who chose option No. 2 has accumulated $60,000.  But what happens after two years is that the person who chose option No. 1 has accumulated $2.2million because of the compound effect and the person who chose option No. 2 has accumulated only $120,000!

We live in a society that has a microwave mentality where we expect ‘instant downloads’, ‘fast food’ and ‘same day shipping’.  We grossly underestimate the difference that small, SE but smart decisions can make in creating seemingly incomprehensible and amazing results. 

You see I recently started a Healthy Eating and Exercise program to help me lose nearly 20kgs of weight that I have put on over the last four years. The program follows the R.A.W. principle.  Real Food, Accountability and Walking.  After two weeks I’m struggling to keep up with achieving 10,000  to 12,000 steps per day and was feeling a little sore and sorry for myself and felt like giving up, until I watched this video!

So after watching this, I got up, got dressed and took the dog for a walk rather than wallowing in my ‘self pity’ feeling discouraged because I’m not seeing ‘instant results’!  I realise now that if I make little changes to the way I eat and exercise, while results might not be evident in two weeks, I’m excited to see what I can achieve in 12months! 

The moral of this story?  Don’t ever underestimate the power of the 'Compound Effect'.

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