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The Compound Effect Summary

Here’s The Compound Effect summary. Learn how your everyday little decisions lead you to a life of success or failure. The results of your decisions compound fast. Make them work in your favor.


The Compound Effect author Darren Hardy explains how to jump start your income, life, and success. He explains that both success and failure are the results of choices made every day.

Those everyday little decisions do accumulate. They don’t seem to matter. But in the long run, they dictate what lives we will ultimately live. Learn how to make everyday little decisions that compound to success.

About the Author

Darren Hardy is an American author and former SUCCESS magazine publisher. Aside from The Compound Effect, he also wrote The Entrepreneur Roller Coaster.

He wrote about the impact of everyday decisions in The Compound Effect. While in The Entrepreneur Roller Coaster, he focused on the challenges often encountered by entrepreneurs.

Main takeaways: The Compound Effect Summary

Let’s discuss the key takeaways from his book:

  1. Success is the result of small choices we make every day.
  2. You already know all you need to succeed.
  3. The formula for getting lucky is simple.

Success is the result of small choices we make every day

Yes. It’s often the little things that matter. They are little things. But if you do them every day, they add up. They determine your outcome. They also determine your next set of actions.

What are those small choices? Exercising a bit each day. Eating healthy food. Saving money. Spending money. And more. They seem to be trivial. But change how you do them and you change your destiny in effect.

Those small choices can determine if you’re living a life of failure or success. For example, if you always exercise you get better health. If you’re wise in your spending, you will save a lot of money.

It’s obvious but few of us actually do it. We focus on the big things like winning the lottery. Or we focus on making our income suddenly grow to millions. But those have little chance to happen. We should focus on the low hanging fruits first. Our habits and small decisions we have control over.

So if you want to achieve more success, look at your habits. Which ones help you achieve your goals? Which ones drag you down? Which ones will make you healthier, wealthier, and happier?

You already know all you need to succeed

If you’re reading this you already know what it takes to succeed. If you need more information, you can just search it on the web.

However, we’re often overwhelmed with information. You read an article today about the benefits of working early in the morning. The next day you read about the benefits of working late at night. In the end you don’t know what to do.

More information can also lead to paralysis. You gather more and more information. At the end of the day you didn’t accomplish anything. You didn’t put something out there. It’s all in your head.

Information can be helpful. But more information doesn’t always mean better. With the internet information exploded. We should be all wealthy now if information is the basis for getting more success.

You already know all you need to succeed. The only thing you need to do now is to act on them. You don’t need a lot of information to get started. No matter where we are we have an incomplete knowledge about the decisions we’re about to take. But the information we have right now is already enough to achieve a reasonable amount of success.

The formula for getting lucky is simple

Here it is. Preparation plus attitude plus opportunity plus action equals luck. Take away one and it’s not easy to achieve success.

If you take away the preparation, you won’t be able to recognize the opportunity. You’ll just see that one particular chance as nothing out of ordinary.

Attitude is your belief and mindset. If you don’t value your time, you won’t achieve much success. If you believe that you’re going to fail before you even try, success is out of reach. If you have a success mindset, you’ll be unstoppable.

Opportunity. We all need it. If there are no opportunities, our skills and knowledge won’t matter. Don’t worry because opportunities always come. It happens especially now. We have the internet. Most of us have good health.

If we fail to use the opportunities, another one will surely come along. Or we can still go back and rise again. We can fail again but surely we can also rise again.

Action. This is important. Nothing happens if you’re only thinking about the opportunities. Even if you recognized an opportunity, you won’t be able to take advantage of it without action.

Action is what makes people successful. Motivation and inspiration are not enough. You have to do something. You have to act on what you know. Don’t wait for the perfect timing to start.

You learned how our small choices affect our fate. You also learned the formula for getting lucky and that your knowledge is already enough to achieve success. Aside from those, you’ll also learn the following from The Compound Effect book:

  • Why our small actions have endless repercussions
  • Why you should build awareness of your habits and present situation
  • Why you should start giving more
  • Once you get the momentum, it gets easier
  • Set up helpful routines. They make a huge difference

My personal takeaways

We already know what we need to do. But we don’t often do the things that will help us. We get distracted. We consume too much information. We receive conflicting advice.

The Compound Effect is a reminder on how to achieve success. The author reminds the readers of the important principles that help people become successful.

I realized that the seemingly trivial choices I make every day actually affect my whole life. There are always consequences. I should focus now on fixing my habits and routines.

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