Compound Effect By Darren Hardy

Compound Effect Book Summary

A book that tells you why you should start your investment journey as soon as possible. Darren Hardy author of Compound Effect has shared decades of data, this data will blow your mind and will teach you why investment is necessary for every human being.

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Compound Effect Summary

The Compound Effect is the power of knowledge, the more you read, the more you will understand the power of the Compounding effect.

I would highly recommend you buy this book from Amazon and start reading, it’s not only about finance, you will also learn some of the essential lessons about life and the Psychology of humans while spending money.

Whether you want to complete your goals, buy a new smartphone, or start investing. The Compound Effect Book will teach you everything from the ground to the top in simple language.

Choices + Behaviour + Habits + Time = Compound Effect

  • Change your goals into daily habits
  • Set routines for a certain task
  • Select the Habit and on it, every day, don’t skip a day.

Turn Your Goals into Habits

Let’s say, you want to start reading books every day.

  • Find a place where you can read a book.
  • Select the time (ex; I will read the book at 7:00 AM in my bedroom).
  • Repeat the same habit for a month.
  • After a month, you will automatically go to your bedroom at 7:00 AM to read books.

Now, this may sound easy but it’s not. Adding new habits will take time but if you follow the steps then after 30 days, you will see positive results.

The same can be applied to exercise, writing, learning a new language, or anything else. Just repeat the habit every day for a month…

Also, when you want to quit or add new habits, it will take some time, so follow the process and trust yourself. In the end, you will get what you wanted. The success formula is, stick to the habit.


When you wake up in the morning, you have two choices,

  1. Whether you can use a smartphone or,
  2. Start reading books.

Now, your mind will choose a smartphone because that’s what makes you happy but sometimes, you have to say NO.

Just like that, everyone has a choice whether it’s about reading books, doing exercise every day, starting a business, or doing jobs.

Don’t say yes to something because it’s easy or you feel comfortable doing it, do the things which add value to your life.


I think everyone knows, who is Warren Buffett, right?

So let me share with you his investment journey and see, how Compounding Effect works.

Compounding Effect

As you can see, if you start investing a little bit of money every month or week then after five or ten years, how much you can have? the formula is very simple, invest every month, no matter what happens…

Investment DateRegular InvestmentInterest (30%)Ending Balance
01-01-2023Rs 5,000Rs 100Rs 5,100
02-01-2023Rs 5,000Rs 202Rs 10,302
03-01-2023Rs 5,000Rs 306Rs 15,608
12-05-2050Rs 5,000Rs 4,913,467.18Rs 250,586,826.01

The numbers may change as per the interest rate you earn, the data is to show you, what will happen if you be a consistent investor…

Now, following, what Warren Buffett did is not easy but it’s not impossible too.

“The real cost of a four-dollar-a-day coffee habit over 20 years is $51,833.79. That’s the power of The Compound Effect.” – Darren Hardy

In short, what the author has said, start investing as soon as possible, it doesn’t matter how much you invest.

Time Management

If you think you have unlimited time then you’re not living in the reality.

Time is passing every second, so you have to manage your time. So, don’t waste time by watching movies, playing video games, or watching p*rn.

Now, you will say, how can I manage my time… here is an example for better understanding…

For Example,

  • Exercise – Important
  • Reading books – Important but Not Urgent
  • Writing Article – Important (for me)
  • Video Editing – Important (for me)
  • Posting Videos on all Social Media websites – Important but Not Urgent
  • Watching Movies – Not Important or Urgent
  • Going out with Friends – Not Important or Urgent
  • Buying new Smartphones – Not Important or Urgent
  • Playing Videos games – Not Important or Urgent

Related: Ankur Warikoo Time Management Course – Take Charge Of Your Time

In the same way, go take pen and paper and write everything you wanted to do the next day along with whether the task is impotent or not.

This way, you will be able to do more work in less time.

Compound Effect Review

The Compound Effect Book will teach you, how to invest your money, how to build good habits and remove bad habits, and how doing 1% every day can change your life. Overall, The Compound Effect is a powerful book that will make a huge impact on your life.


“The real cost of a four-dollar-a-day coffee habit over 20 years is $51,833.79. That’s the power of The Compound Effect.”

“In essence, you make your choices, and then your choices make you.”

“Losing is a habit. So is winning. Now let’s work on permanently instilling winning habits into your life.”

In the end, I would say, if you want to live comfortable life then make sure you start investing. It could be anywhere but invest as much as you can.

By the way, we also have a WhatsApp Channel, so if you love reading then it’s better to join the channel. And yes, it’s FREE…

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