The Compound Effect (Animated Book Summary) by Darren Hardy

The Compound Effect (Animated Book Summary) by Darren Hardy

January 20, 2020 75 By Kailee Schamberger


hey guys it’s Theodore and before I
start this video I want to let you know that there’s an actionable worksheet PDF
in the description below that can help you apply the concepts that you learn in
this video there’s actually a PDF for every video in practical growth academy
anyways there’s also a link to get my top ten favorite books because a lot of
people have been emailing me lately about them so go ahead and check them
out now the compound effect is a great book when getting started into
self-development because it lays the foundation for understanding how your
small choices can end up making very large impacts on your life so the first
big idea I want to talk about is something he calls the magic penny in
the book Darren Hardy explains the idea of compound interest using the magic
penny idea the basic idea is that when looking at these two options which one
looks more attractive three million dollars right now or a penny that
doubles in value every day for 31 days you might have heard this before and if
you haven’t you probably would have picked the three million dollars just
because you don’t know the power of compounding interest after 31 days the
penny choice is now worth five point three million dollars almost double the
first option we can compare this growth to ourselves for example let’s say you
eat a small chocolate bar every morning for around three years if the chocolate
bar is around 125 calories and you do nothing extra to your diet or your
exercise program you would gain an extra thirty nine pounds in those three years
because 125 calories times 365 days times three years then you take that and
you divided by three thousand five hundred calories per pound
you get 39 pounds now it’s really crazy to think about it but this principle is
at play in every minute of our lives imagine if your write a small ten pages
a day for three years what would that be that’s around forty three books in three
years by only reading ten pages a day and that is life-changing
in fact some experts say that the minimum amount of books to read to
become more knowledgeable at a topic more than 90% of the general public is
just for books after reading forty three books you’ll be ranking with the experts
in less than three years and the problem oh is that because it’s easy to do it
means it’s also easy not to do right so the next big idea I want to talk about
is about owning 100% now this is kind of a paradox
since these small daily choices are easy to do they’re also easy to skip hey I’ll
read 10 pages tonight or workout tomorrow morning and burn off this donut
I’ll get that project done next week we say stuff like this all the time our
brain over estimates how long tasks will take and because of this we
will procrastinate and put it off Darrin the author says we’re all self-made men
and women but only the successful people take credit for it if you’re dead broke
with no friends it takes a lot of character to say I’m here because of my
choices and the decisions that I’ve made up to this point well when you have the
humility to actually admit that and say since I’ve got here I can get myself out
of this hole then you can start to get back on the right track that you were
aiming for once you own a hundred percent of your responsibility and your
situation you can start to understand that you have more control of your life
than you actually think and your decisions will matter more to you so big
idea number two is to own 100% the idea number three is small choices once you
have accepted that your life is 100% your responsibility you can start to
commit to small easy choices I’m talking about stuff like I’m gonna save $120
every month until the end of the year I’m gonna have dinner with my father
once a month I’m gonna go to the gym twice a week for a month these small
choices really help 120 dollars every month for 20 years with an average
interest rate compounds to over $50,000 and also imagine how many more memories
you’ll have with your family members and the loved ones if you commit to seeing
them at least once a month for a lot of people it’s just around the holidays and
also imagine how much longer you will statistically be able to live if you go
to the gym twice a week opposed to never the next big idea I want to talk about
is about the law of attraction and how it really works now in the self
development niche I get asked all the time about my own personal opinion of
the law of attraction and most people understand it it’s kind of like if I sit
here and think about it all the time then I’ll get it
like if I sit on the couch and think about a million dollars then I’ll get a
million dollars I’ll win the lottery or something well that’s not true it’s not
how it works so your brain is a highly sophisticated organ that consumes
billions of sensory data groups every day and to prevent it from going insane
and to make your life easier to live it forgets a very large amount of all of
that information however your brain will pick up on relevant things so if you’ve
been thinking about getting a new job it’ll pick out information that it
thinks is relevant to getting a new job for example you might see an
advertisement for a job recruitment that you would have otherwise dig Nord
but your brain picked it out and made you look at it have you ever learned a
new word and you hear it four or five times the next week even though you’ve
never heard that word this is the reason why if you want to
put the law of attraction to work or rather your brain to work for you fill
it with things that you want more of in your life make sure that if you’re
trying to lose weight you write down your goals you start listening to people
who talk about how to lose weight and you read books around the same topic and
because of this new information your brain will remind you next time you’re
about to have Italy eat some candy so the law of attraction is just a little
trick to help your brain make living your life and getting to your goals
easier it’s not some magic thing that you can sit in your house and wish up
something you have to go and put in the work but the law of attraction makes the
work more important the last idea is garbage in garbage out
another huge idea I found in this book which actually takes up a couple of
pages is something called garbage in garbage out
it basically means if you’re consuming negative information you’re eating
low-quality food and you’re hanging around toxic people your life quality is
going to suffer it just makes sense instead pick carefully what kind of
information that you consume daily cut back time with those talks and friends
and educate yourself about your diets your macronutrients and food quality
remember that the compound effect will magnify what you consume over time so 30
minutes of dramatic news each night will drastically change your thoughts but so
will 30 minutes of reading a new book so the big idea here is to choose carefully
also again you can check the description links below for a free actionable
summary and also a list of my top 10 books you just go to that page enter
your email and I’ll send them right to your email before you in this video I
want to let you know that this video right here is a shorter version of the
entire full summary with in practical growth Academy they might be wondering
what is practical growth Academy practical growth Academy is a private
mastermind group where I add animated book summaries and actionable worksheets
every week so that you can better remember and apply the principles that
you learn in these books plus I also add monthly mini courses journal outlines
and you get access to a premium discord server and if you join up today I will
send you a $20 Amazon gift card and that’s really cool because it only costs
17 dollars a month to join which is technically less than the price of an
average book and you can cancel anytime which basically means your first month
is free right now there’s a lot more that you’ll get access to including the
full psychology of beliefs course when I finish creating it so to learn more
click the link in the description about practical growth Academy thank you guys
so much for watching and let me know if you want shorter summaries like this one
on the channel see you in the next video