The Powerful Effect Of Compounding Has On Your Life

What To Expect?

In today’s article, The Powerful Effect Of Compounding Has On Your Life we will discuss the impact the coined phrase the compound effect in finance can actually have a major impact on your mindset and your overall productivity too.

What Is Compounding?

The Powerful Effect Of Compounding Has On Your Life
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You probably know the word compounding best within the financial world when it comes to investing in stocks and shares. But what if I told you, you can actually benefit from this with other parts of your life.

Once you get to grasp what compounding is, it can really open your mind to other possibilities which will discuss later.

So compounding is a process of growing where compound interest, is interest earned on money that was previously earned as interest. In what we’re discussing today it’s compound effort earned on results that were previously achieved through effort.

This cycle in finances leads to increasing interest and account balances at an increasing rate, sometimes known as exponential growth. With the same principle you can do the same with the effort you put in day by day will be built into something of substance. For example, 1 driving lesson won’t help you pass your driving test but multiple lessons will.

When You Don’t Know What To Do In Life

A great way we can utilise the compounding principle is when we don’t know what to do in life. Most of us in our teens and ’20s don’t have a clue what to do in life. This can lead to procrastination where nothing get’s achieved or progressed.

When I left school at 16 I had no idea what I wanted to do. When I left university I was still in the same predicament. I had no purpose to fulfil. But when I looked back. The action I took led me to have a degree and better understanding of coaching and psychology as well as a magnitude of other skills I learned along the way. I was really grateful without knowing how the compound principle allowed me to progress as a person to get closer to what I wanted to do.

There are many principles you might have heard of. For example placing 1 perfect brick, taking one step forward, the 1% rule and the snowball effect. When practised these are principles that can change your life if practised.

When you don’t know what to do with your life. The best thing you can do is to take action on something. You won’t get the body you desire unless to start and those with everything in life.

Too many people don’t take any steps or lay that first brick and just procrastinate. Nothing gets done. But what people do who have the life they want. They just took that initial step forward, built the first layer of their business by writing that first blog post or applying to learn a skill that leads to the job you wanted.

When we take action and take the first step we are 1 step closer to finding what we want to do in life.

How To Compound Your Life Forward

  • Question the consequences of your bad habits on your future
  • Ask yourself what you can do today that makes you 1% better than yesterday
  • When creating goals work backwards to find what you can today to compound your life forward
  • Challenge yourself to take tiny little steps one at a time
  • Be constant with your daily actions – reading 5 pages a day for a year is 1825 pages whereas reading inconsistently will, of course, be far less
  • Start early and don’t wait to start
  • When you don’t feel like it, do it anyway

Over To You

Today’s article, The Powerful Effect Of Compounding Has On Your Life.

It personally helped form the person I am today.

The only difference between you and someone who has what you would love to have. Is the decisions made on a daily basis.

When you procrastinate and say I will to it tomorrow.

Someone else is doing the work and putting in those daily actions to compound their life forward.

Don’t be left behind with regrets about the decisions you have made be one step ahead and take action now!


Hi, I'm Adam
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Hi, I’m Adam

I’ve spent over 10 years coaching and mentoring people within sport and business. I have many life skills that I have developed and I want to pass these skills on so people can find their best self. I believe it all starts in the mind and I write about valuable tools and strategies to help people grow in this area.

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